Kakao Games, recently acquired by a special purpose corporation (SPC) under Line Yahoo Japan, has completely revamped its management team and restructured its governance. The company denied rumors of a merger with Line Games.
On Monday, Kakao Games held an extraordinary general meeting and board of directors meeting at the Kakao Artificial Intelligence (AI) Campus in Yongin, where they officially appointed Kim Tae-hwan and Lee Si-woo as co-Chief Executive Officers (CEOs).
Earlier, Kakao Games announced its acquisition by LAAA Investment LLC. The majority shareholder of LAAA Investment is Petriko No. 6 Private Equity Limited Partnership, a special purpose corporation (SPC) funded by Japanese Line Yahoo.
Former Line Games Executive Kim Tae-hwan, Ex-Kakao Games Veteran Lee Si-woo to Lead as Co-CEOs
Kim brings extensive experience to his new role, having served as head of strategic planning at Nexon Korea, planning and coordination director, vice president, CBDO at Nexon Japan, vice president at Nexon America, and vice president (CSO) at Line Games. At Kakao Games, he will spearhead the company’s long-term business strategy, global expansion, mergers and acquisitions (M&A), and strategic investments.
Kakao Games lauded Kim as a deal maker in the gaming industry, citing his track record of orchestrating domestic and international mergers and strategic investments at Nexon and Line Games.
Lee Si-woo, a Kakao Games veteran since its 2015 inception, previously headed the mobile business division and served as vice president (CBO), overseeing both mobile and personal computer (PC) game operations. His successful publishing of major IPs and popular subculture genre games has been instrumental in elevating Kakao Games to a leading position in South Korea’s gaming industry.
Going forward, Lee plans to leverage his expertise to bolster the company’s gaming business, focusing on live service operations, new game publishing, and intellectual property (IP) portfolio management.
CEO Kim emphasized the need for aggressive investment and innovation to compete in the global market, stating that it will leverage our financial strength to drive rapid growth on the international stage.
CEO Lee added that they’re committed to developing Kakao Games’ unique IP, building on the proven live service capabilities and exciting new game lineup.
CFO Shin Kwon-ho Says No Decision Made on Line Games Merger, Remains Cautious on Shareholder Returns
Kakao Games aims to complete the restructuring of non-core businesses and improve its financial structure while developing growth strategies based on its enhanced financial stability from strategic investments.
The company plans to actively pursue equity investments and acquisitions of promising domestic and international developers to expand its IP portfolio and development capabilities.
Despite rumors, the company has denied any immediate plans for a merger with Line Games.
Chief Financial Officer (CFO) Shin Kwon-ho clarified that while there are no concrete plans to merge with Line Games, it anticipates collaboration similar to our past partnerships with Kakao affiliates.
Shin noted that the recent change in majority ownership brought a 300 billion KRW (approximately 195.35 million USD) capital injection, significantly strengthening the company’s financial position. He expressed optimism about gradual performance improvements alongside new game launches.
Shin refrained from detailing specific shareholder return policies in response to requests from the shareholders’ coalition at the meeting.
He acknowledged the importance of shareholder value, stating that maximizing shareholder value is a top priority for the new management team. However, he noted that it was premature to outline specific plans, as the new co-CEOs had just assumed their roles. Shin promised to engage with the market once internal management strategies are solidified.
In addition to the leadership changes, Kakao Games appointed Im Tae-seob as an outside director and Seo Seok-ho as a non-executive director.
Im previously led the Korean branch of Goldman Sachs Group, Inc. Asset Management and currently serves as an outside director at SK Telecom. Seo holds positions as an inside director at Coffee Bay and managing director at Petriko Partners, the special purpose corporation (SPC) funded by Japanese Line Yahoo.
