Game maker in good hands despite sudden passing

The death of Kim Jung-ju may have little impact on the fate of Nexon, the company he founded decades ago.

As the game maker is professionally managed and has a solid corporate governance structure in place, it can continue to carry on as is uninterrupted, barring any big moves by the beneficiaries of the founder.

At the time of his death, Kim owned 67.49 percent of NXC shares, which controls Tokyo-listed Nexon. Nexon wholly owns Nexon Korea as well as other Nexon units in the United States, Taiwan and Thailand.

Kim was chief executive officer of NXC for 16 years, until he stepped down from the post in July 2021.

Founded in Korea and listed on Tokyo Exchange in 2011, Nexon posted 274.5 billion yen ($2.38 billion) in revenue last year, down six percent year on year. Its market cap was 2.46 trillion yen Tuesday.

NXC holds 47.4 percent of Nexon and is its largest shareholder.

Neople, a wholly-owned subsidiary of Nexon Korea, released the original PC-based Dungeon Fighter Online in 2005 and was acquired by Nexon in 2008. Since it was introduced in China in 2008, the game has gained a lot of traction, setting a record of 6 million concurrent users last October.

Nexon Korea owns 63.16 percent of Nexon GT, the developer of Sudden Attack, a first-person shooter online game. Nexon acquired Gamehi in 2010, which changed its name to Nexon GT in March 2014.

Subsidiaries owned by NXC include a Norwegian baby accessories manufacturer Stokke. Founded in 1932, the company is the global industry leader in baby and children's products, especially strollers. The company was bought by NXC in 2013 through its NXMH subsidiary.

Kim owned 67.49 percent of NXC, Kim's wife Yoo Jung-hyun 29.43 percent and their daughters 0.68 percent each. As Kim and Yoo's private company WiseKids owns 1.72 percent of the company, Kim and his family members hold 100 percent NXC.

Kim was ranked as the fifth richest person in Korea by Bloomberg last September, with a net worth estimated at $6.1 billion.

Nexon is run by Owen Mahoney, CEO.

The company has been ramping up investments with the goal of combining its gaming and video content to establish a connected ecosystem of intellectual property. A recent example is Nexon's $400 million investment in AGBO, a film production company co-founded by "Avengers" directors Joe and Anthony Russo, in January 2022.

When Kim resigned as CEO of NXC last July, he remained on the board of the company.

Kim prepared to put his NXC shares up for sale in 2019 but soon scrapped the plan. In 2018, he pledged to donate 100 billion won and not to pass his company down to his children.

Kim's wife will have the final say over his shares, but little is known about her and her intentions. Yoo worked together with Kim and Song Jae-kyung, the co-developer of "The Kingdom of the Winds," since 1994, when the company was founded, but rarely made public appearances and was not directly involved in company business.

BY PARK MIN-JE [shin.hanee@joongang.co.kr]