'Inheritance Tax of 6 Trillion Won' Bereaved Family's Quiet Moves... Nexon Governance Restructuring Yet to Come

One Month After the Passing of Kim Jung-ju, Nexon Founder

Japanese Corporation's General Meeting Has No Related Agenda
Founder Kim Stated "No Succession" During His Lifetime
High Possibility of Family Selling Shares

Korean Corporation Accelerates Console Game Entry
Targeting Japanese, European, and North American Markets

Nexon Console Game 'DNF DUEL' Image

[Asia Economy Reporter Seungjin Lee] It has been a month since the passing of the late Kim Jung-ju, the founder of Nexon and the largest shareholder of the holding company NXC, but the future of the shares owned by Director Kim remains shrouded in uncertainty.

One Month Since Founder Kim's Passing

According to Nexon on the 25th, the shareholder meeting of Nexon's Japanese subsidiary, Nexon Japan, held on that day did not include any special agenda items beyond the usual matters such as amendments to the articles of incorporation. Although there had been speculation that issues related to restructuring the governance following Founder Kim's passing might be raised, no particular developments have occurred so far.

A Nexon official stated, "There is no news being shared with affiliates regarding the holding company NXC," adding, "We are focusing on game development as before without any special changes." It is also reported that Yoo Jung-hyun, the auditor of NXC and wife of Founder Kim, who holds 29.43% of NXC shares, has shown no significant movements.

Through the shareholder meeting, Nexon Japan expressed its determination to faithfully carry out Founder Kim's goals. Nexon Japan has included "entertainment planning and operation" in its articles of incorporation, signaling its intention to pursue related business activities. Founder Kim had always emphasized his goal of making Nexon the world's leading entertainment company.

Owen Mahoney, CEO of Nexon Japan, also highlighted Founder Kim's spirit in a shareholder letter. He said, "The most effective way to navigate a rapidly changing world is to break away from conventional thinking, prioritize principles, and avoid herd mentality," emphasizing, "This has been the spirit since Founder Kim Jung-ju established Nexon in 1994 and continues to this day."

Inheritance Tax as a Variable

Industry insiders expect no immediate changes at Nexon, given the established separation between management and ownership. However, since Founder Kim and his family hold an absolute majority of shares in the holding company NXC, long-term changes are inevitable.

Founder Kim had stated during his lifetime that he would not pursue second-generation management succession, so family succession is unlikely. The enormous inheritance tax on Founder Kim's estate, estimated at around 10 trillion won, is also a factor preventing family succession. The expected inheritance tax alone is about 6 trillion won, making share sales unavoidable. As of the end of last year, Founder Kim held 67.49% of NXC shares, his wife Yoo Jung-hyun held 29.43%, and their two daughters each held 0.68%.

The industry views acquisition through share sales as highly likely. Nexon owns numerous globally popular intellectual properties (IPs), and with games expected to remain a core element in future growth areas such as the metaverse (extended virtual worlds), interest in Nexon is high. Recently, Saudi Arabia's sovereign wealth fund (PIF) purchased about 2.3313 trillion won worth of Nexon shares listed on the Japanese stock market, reflecting growing interest from external investors.

Dungeon & Fighter Mobile Image

Development Team Accelerates Entry into Console Game Market

Nexon's Korean subsidiary has included a total of four 'console' games (KartRider Drift, Ark Raiders, Project Magnum, DNF DUEL) in its new lineup this year, signaling a shift. Nexon is a PC and mobile game company generating 72% of its revenue from PC and 28% from mobile. Until now, it had no console games.

The console games represent a strong intention to actively target markets beyond Korea and China, including Japan, North America, and Europe. If Nexon can increase global sales through console games, it could alleviate the 'China risk' concerns pointed out by the industry. Last year, Nexon's revenue distribution was Korea (56%), China (27%), North America and Europe (7%), and Japan (4%).

'Dungeon & Fighter Mobile' (DNF Mobile), released on the 24th, opted for a 'manual combat' system instead of the 'auto-battle' system used by most mobile games. It also removed excessive monetization (BM) elements. This approach aims to maximize the fun of the original PC game. Choi Sung-wook, head of Nexon Publishing Live Division, which produced DNF Mobile, said, "CEO Lee Jung-hyun often called to ask just two questions about the game: 'Is it fun?' and 'Is it stable?'" This shows that prioritizing fun was paramount. This move continues the legacy of Founder Kim, who consistently emphasized the goal of being a 'beloved game company.'

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