Smilegate Separates Financial Subsidiaries... Expands into Global Financial Market

by Kang Nahum

Published 13 Apr.2022 11:13(KST)

Smilegate Separates Financial Subsidiaries... Expands into Global Financial Market

[Asia Economy Reporter Kang Nahum] Celebrating its 20th anniversary, Smilegate is spinning off its financial affiliates to enter the global financial market. The company plans to segment startup investments and make proactive investments in future new industries such as artificial intelligence (AI) and blockchain, aiming to establish itself as a ‘global innovator in the Korean financial industry.’

On the 13th, Smilegate announced a governance restructuring plan to divide its more than 10 affiliates and related companies into a game and entertainment group and a financial specialized group, including VC (Smilegate Investment) and asset management (Smilegate Asset Management).

Kwon Hyuk-bin, founder of Smilegate, revealed that he will also make personal equity investments alongside the launch of the independent financial group. Additionally, he promised active support to help young entrepreneurs challenge the global market.

The Smilegate Financial Group will build a global financial platform that provides financial services incorporating new technologies such as AI and blockchain in the global financial market. Investments will continue not only in the U.S. but also in Asian markets such as India and China.

Investment programs for early-stage businesses, such as angel funds, will also be actively developed. Smilegate Investment plans to spin off its accelerator (AC) into a separate corporation within the year. AC, Investment, and Asset Management will each specialize in early-stage investments like angel funds, traditional venture investments from Series A to Pre-IPO stages, and investments in listed companies, real estate, and overseas markets, respectively, aiming to nurture companies in all fields more professionally. The intention is to actively discover promising companies from the early stages and build a startup ecosystem through systematic investment.

Seong Junho, CEO of Smilegate, stated, "We will make the 20th anniversary the inaugural year for fostering and developing an innovative global financial sector. We will strengthen capabilities so that the new financial group can grow independently and will spare no effort in continuous investment and support based on an innovative vision to grow into a global top-tier financial group."