'Oil Money' Influx at NC and Nexon: "No Threat to Management Rights... Rather an Opportunity"

[Asia Economy Reporter Kang Nahum] The Saudi Arabian sovereign wealth fund PIF (Public Investment Fund), known as "oil money," is expanding its influence in the domestic gaming industry by making large-scale equity investments in NCSoft and Nexon. The game companies receiving these investments are encouraged by the recognition of their corporate value from global investors and the potential boost to their stock prices.

According to industry sources on the 11th, PIF disclosed that it acquired an additional 563,566 shares (2.57%) of NCSoft stock for approximately 290 billion KRW the previous day. Earlier, PIF had also disclosed holding 1,468,845 shares (6.69%) of NCSoft stock last month, which was valued at about 800 billion KRW based on the stock price at that time. Combined, PIF has invested around 1 trillion KRW in purchasing NCSoft shares, holding a total of 2,032,411 shares (9.26%). This is the second-largest stake after NCSoft CEO Kim Taek-jin (11.9%).

PIF had previously made a large-scale equity investment in Nexon, becoming its fourth-largest shareholder. Since the first investment of over 1 trillion KRW on January 25, PIF's cumulative investment in Nexon has reached 197.04642 billion yen (approximately 2.1068 trillion KRW).

PIF has not disclosed specific reasons for its investments in domestic game companies beyond stating it is for simple investment purposes. It is understood that there were no prior discussions or exchanges with the management or boards of these companies during the share acquisition process.

The game companies also interpret the investments as purely financial rather than attempts to gain management control. A representative from one game company said, "Although PIF has significantly increased its shareholding, considering that it has never engaged in hostile M&A and has purchased shares relatively cheaply on the market, we believe it will not pose a threat to management control."

Industry insiders believe that PIF judged these game companies' stock prices to be undervalued relative to their growth potential. Nexon is currently raising its profile with this year's lineup keywords including ▲mobile adaptations of classic IPs ▲next-generation games aligned with global paradigm shifts ▲large-scale MMORPGs that could shake up the market. Nexon plans to release Dungeon & Fighter Mobile in Q1, along with new titles based on steady-selling intellectual properties (IPs) such as Mabinogi Mobile and TalesWeaver: Second Run.

NCSoft is also shifting its business focus this year from ’R&D‘ to ’C&D (Collaborative & Open Development)‘, expanding its portfolio across various genres including interactive movies, action battle royales, and collection RPGs.

The influx of large-scale funds has created an encouraging atmosphere for each game company. Especially for NCSoft, whose stock price has halved from last year's peak and struggled to find a rebound opportunity, PIF's investment is expected to act as a catalyst for stock price recovery. An NCSoft representative said, "Although we are cautious because we do not know the exact investment purpose of PIF, the fact that a fund specializing in high-growth companies has increased its investment is positively understood as recognition of the company's growth potential."

This content was produced with the assistance of AI translation services.