Wemade Issues Revised Disclosure Reducing Last Year's Revenue by 200 Billion Amid 'Coin Inflation' Controversy

[Asia Economy Reporter Lee Seon-ae] Wemade has issued a corrected disclosure regarding the 'coin inflation' earnings.

Controversy arose as the amount from selling its own virtual assets was recorded all at once in the fourth quarter sales of last year, achieving record earnings. Ultimately, the virtual asset sales revenue was excluded from last year's earnings. As a result, both last year's sales and operating profit decreased by about 230 billion KRW, causing the performance to fall significantly below expectations.

On the 16th, Wemade issued a corrected disclosure reporting last year's sales of 337.3 billion KRW and operating profit of 100.9 billion KRW.

By excluding the revenue from the securitization of the virtual asset 'Wemix' from sales, the previously announced sales of 560.7 billion KRW and operating profit of 337.3 billion KRW disclosed in February were halved.

Last year's fourth quarter sales were also adjusted from 352.4 billion KRW to 129 billion KRW, and operating profit from 254 billion KRW to 29 billion KRW, respectively.

A Wemade official explained, "At the time of the earnings announcement, after consulting with a major domestic accounting firm and conducting a long-term review, we judged that securitization should be recognized as sales. However, just before submitting the business report, we received a final opinion from the auditor that it should be accounted for as deferred revenue, and thus we had no choice but to proceed with the corrected disclosure." The company added, "At a time when accounting and laws related to blockchain business are not clearly established, we will conduct transparent communication with the market through consultations with accounting firms and the Korea Accounting Standards Board."

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