A New Start as "NC"... CEO Byungmoo Park Says, "We Will Prove Our Growth Through Results"

NC Holds 29th Annual General Shareholders' Meeting
Company Name Change and Amendments to Treasury Share Provisions
Concerns Raised Over Executive Compensation and Dividends

NCSoft has announced a new beginning under the name "NC." This is the first time the company has changed its name in 29 years since its founding in 1997.

Entrance to the 29th regular shareholders' meeting of NC held at the R&D Center in Seongnam, Gyeonggi Province on the morning of the 26th. Photo by Nogyeongjo

On the morning of the 26th, at the R&D Center in Seongnam-si, Gyeonggi Province, NC approved this agenda item at its 29th Annual General Shareholders' Meeting, reaffirming its commitment to achieving annual sales of 5 trillion won by 2030.

During the business performance report, Byungmoo Park, Co-CEO of NC, said, "We are continuously enhancing the value of our legacy intellectual property (IP) through the release of spin-off games and regional expansion, while also making ongoing efforts to secure new IP."

He added, "Various new projects across different genres, such as 'The City of Sinder' and 'Horizon Steel Frontiers,' are underway to drive the company's mid- to long-term growth," emphasizing, "This year, we aim to achieve significant high growth." He also mentioned plans to foster the mobile casual business in order to establish a virtuous cycle structure.

NC has established new provisions in its articles of incorporation regarding the disposal and retention standards of treasury shares, thereby creating the potential for large-scale treasury share retirement obligations. The provisions relating to treasury shares allow the company to retain or dispose of treasury shares only when necessary for management purposes such as the introduction of new technology or improvement of the financial structure, and only if permitted by law.

This move is seen as a response to the amendment of the Commercial Act. The revised law stipulates that existing treasury shares must be retired within 18 months, and newly acquired treasury shares must be retired within one year after acquisition.

In March of last year, NC retired 410,000 treasury shares, and as of the end of the year, it held 2,151,579 shares (9.99%). By the next annual general meeting, 215,440 shares are scheduled to be retired for employee compensation purposes. In this case, the treasury share ratio will decrease to 8.99%. NC plans to maintain a certain proportion of treasury shares for purposes such as enhancing shareholder value and securing funds for mergers and acquisitions (M&A).

At the meeting, some opposition was raised regarding the newly established provisions. The reasons cited included concerns that the measures were intended for management control defense, as well as worries about a potential decline in stock price due to future block deals. CEO Park explained, "Any disposal of treasury shares must be approved at the general meeting of shareholders in any case. We are simply establishing a basis in accordance with the amendment of the Commercial Act."

The dividend per common share was set at 1,150 won, with the record date being the 31st of this month. NC maintained a dividend payout ratio of 30%, but the amount decreased compared to the previous year (1,450 won per share). In response, one shareholder commented, "Dividends can increase or decrease depending on the annual profit scale, but CEO Kim Taekjin's remuneration increased by 48% compared to the previous year, and Executive Vice President Lee Sunggu received a bonus of 1.2 billion won. Only shareholders are having to bear the situation of declining profits."

There were also complaints regarding the absence of founder Kim Taekjin at the meeting. Some pointed out that the growth strategy had not changed from the past.

CEO Park stated, "We will present highly polished works that satisfy our customers and make efforts to return value to shareholders," adding, "Please pay attention to our first quarter results this year. We will prove ourselves with results."

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