https://it.chosun.com IT조선 https://it.chosun.com/image/logo/snslogo_20240318102307.png https://it.chosun.com Tue, 02 Jun 2026 06:15:17 +0900 https://it.chosun.com/news/articleView.html?idxno=2023092163073 https://it.chosun.com/news/articleView.html?idxno=2023092163073 Mon, 01 Jun 2026 12:00:00 +0900 swchun@chosunbiz.com (Cheon Sun-woo) NexonGames CEO Park Yong-hyun delivers a keynote address at NDC 2025, held at the Gyeonggi Center for Creative Economy & Innovation. / Photo by Cheon Seon-woo Prolonged Title Drought Weighs on Profitability According to industry sources, Nexon Games posted operating losses for six straight quarters from Q4 2024 through Q1 2025. In Q1 this year, the company recorded an operating loss of KRW 21.1 billion — widening year-on-year — with its operating margin mired in negative 50% territory, signaling continued delays in profitability improvement. The primary culprit is slowing revenue from existing live-service titles. Despite a successful 5th anniversary update for Blue Archive, mobile game revenue came in at just KRW 16.2 billion — a 34% year-on-year decline. The downturn has been compounded by falling sales from MMORPG titles V4 and HIT2, both of which had previously served as cash cows. New title performance has also fallen short of expectations. TPS title Veiled Expert shut down just seven months after its early access launch. The First Descendant drew strong global attention at launch but has struggled to build a sustainable long-term player base; concurrent users on SteamDB have dropped from around 260,000 in July 2024 to roughly 7,600 recently. While Nexon's parent company sustains stable revenue through long-running IPs like MapleStory and Dungeon & Fighter, Nexon Games continues to grapple with the twin challenges of securing new hits and stabilizing its live-service operations. The Big Game Paradox: Costs Come First, Results Come Later Industry observers say CEO Park Yong-hyun, who secured re-appointment earlier this year, is now under serious scrutiny. He faces the daunting task of narrowing losses during a new-title drought while reigniting momentum for existing franchises. The structural challenge is that the company's current business model makes it difficult to turn profitability around quickly. While Blue Archive and Sudden Attack maintain steady user bases, V4 dates back to 2019 and HIT2 to 2022. With competing MMORPG releases expected from rivals in the second half of the year, sustaining market attention will only become harder. Some analysts argue that doubling down on big-budget titles during the current loss cycle is compounding the financial burden — that prioritizing long-term growth over near-term results has driven up costs without yet delivering returns. Park himself addressed this at last year's Nexon Developers Conference (NDC), declaring the company must "break through head-on with big games." At this year's annual general meeting, he framed the rising costs as "an inevitable stage of growth and a preemptive investment in our future as we strive to become a global game company." The core problem with the big-game strategy is precisely this: costs are incurred upfront while results arrive much later. R&D expenditure in Q1 this year reached KRW 22.8 billion, up 17.5% year-on-year. Total headcount also grew from 1,598 in Q1 last year to 1,734 this quarter — bucking an industry-wide trend toward hiring freezes and cost rationalization. If these investments yield successful titles, the company's growth potential could expand considerably. But if launches are delayed or underperform, fixed-cost pressure will only deepen. The big-game strategy could serve as a springboard — or, in the current loss environment, amplify financial risk. Big Title Pipeline Unclear; 'DNF Raise' Sought as Near-Term Lifeline Nexon Games currently has several major titles in development, including open-world action RPG Dungeon & Fighter: Arad, action title Woochi the Wayfarer based on the Korean folklore figure, subculture project Project RX, and Project DX built on the Durango IP. The market sees these as potential next-generation growth drivers, given their use of key Nexon IPs and global market ambitions. However, the absence of confirmed release dates is a concern — big-budget titles carry long development cycles and are prone to delays in the name of polish, making meaningful revenue contribution this year unlikely. Industry watchers are paying attention to how Nexon Games is supplementing its big-title pipeline with titles capable of delivering near-term revenue. The standout example is Dungeon & Fighter: Raise — an idle mobile game unveiled as a surprise at a Nexon CMB event, slated for release later this year. The project is led by Jeong Seong-hun, the producer behind the hit Seven Knights Idle Adventure. Idle RPGs carry lower development overhead than large-scale MMORPGs or PC/console titles, and can generate rapid revenue when successful. MapleStory: Raise reached USD 100 million in cumulative revenue within 45 days of launch, setting a precedent. Should DNF: Raise replicate that success, it could meaningfully ease near-term financial pressures. A Nexon Games spokesperson commented: "The company has never had a policy or plan to focus exclusively on so-called big games. New title development is determined by comprehensively considering market trends and the company's own development capabilities." swchun@chosunbiz.com ]]> https://it.chosun.com/news/articleView.html?idxno=2023092163072 https://it.chosun.com/news/articleView.html?idxno=2023092163072 Mon, 01 Jun 2026 12:00:00 +0900 jubar@chosunbiz.com (Byun In-ho) / ChatGPT-generated image According to industry sources, the KMCC is pushing to ease regulations on home shopping operators and improve the contribution system for the Broadcasting and Communications Development Fund. However, the standard for calculating program usage fees, which causes annual disputes between pay-TV operators and PPs, has yet to be properly discussed. Program usage fees refer to payments made by pay-TV platforms, such as internet protocol television (IPTV) operators, in return for carrying PP channels such as tvN. If the conflict between the two sides intensifies, it can lead to a “blackout,” in which certain channels are dropped from service. According to the KMCC’s data on pay-TV subscribers and market share for the second half of 2025, the number of pay-TV subscribers in the period fell by 76,030 from the first half. Pay-TV operators argue that it is difficult to raise fees due to inflationary pressure while subscriber decline and market stagnation continue. PPs, meanwhile, say they should receive fair compensation as content production costs and cost of sales have increased. They argue that the industry should at least establish the principle of “contract first, supply later,” in which contracts are signed before programs are supplied. The current practice of supplying content first and signing contracts later still remains in place. The Ministry of Science and ICT previously announced guidelines in 2021 that specified the “contract first, supply later” principle. However, the guidelines have not led to actual implementation. The absence of a standard for calculating fees is cited as one reason the principle has failed to take hold. Contracts can be signed in advance only when there is a standard for determining supply fees, but no agreed standard has been established. “It is unfortunate that almost nothing has changed, even though we conducted almost the same study five years ago,” said Kim Yong-hee, a professor at Sun Moon University. “The ‘contract first, supply later’ principle and guidelines for calculating broadcast channel program usage fees have still not been established.” At least since the launch of the KMCC, the agency responsible for handling the program usage fee conflict has become clearer. Previously, responsibility was unclear because the Korea Communications Commission and the Ministry of Science and ICT divided promotion and regulatory duties related to pay-TV. With the launch of the KMCC, around 30 officials from the ministry’s broadcasting-related divisions were transferred to the commission. The KMCC is now responsible for preparing standards for calculating program usage fees. “Once content is already on the platform, PPs inevitably lose almost all negotiating power,” said Kim Se-won, head of the Korea Association for Program Provider Promotion. “A rate-card ratio system and the ‘contract first, supply later’ principle must be implemented together for the normalization of program usage fees to have practical meaning.” jubar@chosunbiz.com ]]> https://it.chosun.com/news/articleView.html?idxno=2023092163067 https://it.chosun.com/news/articleView.html?idxno=2023092163067 Sun, 31 May 2026 22:53:16 +0900 sjyoon@chosunbiz.com (Yoon Seung-jun) The Yeouido financial district seen from 63 Building in Yeongdeungpo-gu, Seoul. / News1 According to the Korea Financial Investment Association on May 29, 15 brokerages with equity capital of at least 500 billion won but less than 3 trillion won—Kyobo Securities, Hanwha Investment & Securities, Yuanta Securities, Hyundai Motor Securities, IBK Securities, Woori Investment & Securities, BNK Investment & Securities, iM Securities, Eugene Investment & Securities, DB Financial Investment, LS Securities, Bookook Securities, Daol Investment & Securities, Hanyang Securities and SK Securities—posted net brokerage commission profit of 555.7 billion won on a separate basis for the first quarter. (Net brokerage commission profit refers to brokerage commission revenue minus trading commission expenses.) The figure was well above their combined operating profit of 494.5 billion won, meaning net brokerage commissions accounted for 112.4% of operating profit. That marks a sharp rise in dependence compared with a year earlier, when net brokerage commissions totaled 170.7 billion won—51.8% of operating profit in the first quarter of last year. By company, nine brokerages posted net brokerage commission profit larger than operating profit: Yuanta Securities (188.9%), Hanwha Investment & Securities (172.8%), BNK Investment & Securities (162.3%), IBK Securities (156.2%), Hyundai Motor Securities (153.8%), Daol Investment & Securities (148.3%), SK Securities (144.0%), iM Securities (119.1%) and Bookook Securities (114.2%). In effect, they generated operating profit by using brokerage commissions to offset a significant portion of losses incurred in other business segments. The picture contrasts with that of major brokerages. For 10 firms with equity capital of at least 3 trillion won, net brokerage commission profit of 2.5898 trillion won accounted for 57.6% of their combined separate operating profit of 4.4973 trillion won. While the share rose by 20 percentage points from 37.6% a year earlier, about half of their profits were still secured from other business lines. The concern is that the expansion in net brokerage commission income at mid-sized brokerages reflects less an improvement in firm capabilities than a windfall from higher market turnover. Total brokerage commission revenue for the industry in the first quarter came to 4.3872 trillion won, of which the top 10 firms accounted for 2.9887 trillion won—about 70% of the total. The 15 smaller firms posted 633.6 billion won in brokerage commission revenue, taking just a 14.4% share. That is virtually unchanged from a year earlier (12.3%). Operating profit and net brokerage commission profit for 15 mid- and small-sized brokerages / Reporter Yoon Seung-jun As a result, the gap with major brokerages has widened further. The combined consolidated net profit of the 15 mid-sized firms in the first quarter came to 415.7 billion won, up 60.8% from 258.6 billion won a year earlier. Over the same period, the combined consolidated net profit of the 10 major brokerages surged 113.7%, from 2.0271 trillion won to 4.3318 trillion won. The net-profit gap, which stood at 7.8 times a year earlier, expanded to 10.4 times in the first quarter of this year. Unless there is a guarantee that the current bull market will persist into the second half, it is difficult to view a brokerage-commission-driven profit structure as wholly positive. Losses are already substantial, including a burden from selling and administrative expenses (a net loss of 1.0296 trillion won), derivatives-related gains and losses (a net loss of 834.3 billion won), loan receivables-related gains and losses (a net loss of 54.7 billion won), and foreign-exchange trading gains and losses (a net loss of 34.8 billion won). Something is needed to offset these drags. If net brokerage commission profit declines, earnings volatility could easily rise again. To improve the quality of earnings, critics say mid-sized brokerages need to step away from the capital arms race with larger rivals and build specialized investment-banking capabilities. With businesses such as real-estate project financing (PF) losing steam, securing research strength in specific industries—and linking that expertise to corporate finance offerings such as equity capital markets (ECM) and mergers and acquisitions (M&A) advisory—could help establish a differentiated revenue base. “Firms should scale back balance-sheet-driven business and, based on expertise and specialized talent, look for deal sources in areas where major players find it harder to penetrate—such as venture and risk capital or specific sectors,” said Lee Seok-hoon, a senior research fellow at the Korea Capital Market Institute. “If a company continues to produce differentiated reports by allocating resources to a particular sector, the market may start to view it differently. In that process, businesses that can be developed one by one may emerge by leveraging internal information advantages and networks,” he added. sjyoon@chosunbiz.com ]]> https://it.chosun.com/news/articleView.html?idxno=2023092163066 https://it.chosun.com/news/articleView.html?idxno=2023092163066 Sun, 31 May 2026 22:47:41 +0900 sjyoon@chosunbiz.com (Yoon Seung-jun) On May 26, Jung Eun-bo, chairman of the Korea Exchange, and other officials hold a ceremony at the KRX PR Center in Yeouido, Seoul, to celebrate the KOSPI surpassing 8,000. / News1 According to the Korea Exchange on May 28, the share prices of eight listed public corporations in which the government is the largest shareholder or exercises controlling influence fell an average of 20.0% over the past three months (from Feb. 27 to the previous trading day). That stands in sharp contrast to a 31.8% gain in the KOSPI over the same period. Their performance was even weaker than the KOSDAQ’s change of -5.0%. By company, Korea Electric Power Corp. (KEPCO)—the bellwether among public enterprises—posted the steepest decline at 32.5%. The stock held in the 60,000-won range through late February, but plunged into the 40,000-won range after the outbreak of war in the Middle East and has yet to recover. Korea District Heating Corp. followed with a 24.6% drop. Next came IBK Industrial Bank of Korea (down 20.4%), Kangwon Land (down 19.5%), KEPCO E&C (down 19.0%), Grand Korea Leisure (GKL, down 16.7%), KEPCO KPS (down 15.7%) and Korea Gas Corp. (KOGAS, down 11.8%). Shares of GKL, KOGAS, Kangwon Land and Korea District Heating were also lower than a year earlier. The weakness in SOE share prices is seen as structural, driven more by policy variables than by market fundamentals. When the prices of energy inputs such as liquefied natural gas (LNG) rise, those costs typically need to be reflected in electricity and gas tariffs. But freezing prices—or raising them only marginally for policy reasons such as inflation control—has proved problematic. According to global financial platform Investing.com, LNG futures (Northeast Asia LNG spot price) stood at $20.1 at the end of March, up 109.6% from $12.2 at the end of last year. By contrast, KEPCO’s residential electricity tariff rose just 0.4%, from 158.97 won per kWh last year to 159.59 won as of end-March this year. KOGAS’s residential city-gas price was unchanged at 20.8495 won per megajoule (MJ), while Korea District Heating’s residential heat price fell 3.7% year-on-year to 115,284 won per gigacalorie (Gcal), down from 119,699 won. Balance sheets have deteriorated as SOEs absorb higher costs. As of the end of the first quarter, KEPCO’s consolidated total debt hit a record 206.3779 trillion won. KOGAS’s unpaid receivables stood at 13.3717 trillion won, while Korea District Heating’s receivables totaled 557.7 billion won. Costs that could not be recovered through tariffs accumulated as debt at KEPCO and as unpaid receivables at KOGAS and Korea District Heating. Share price changes of listed state-owned enterprises over the past three months / Reporter Yoon Seung-jun Other state-run firms face similar headwinds. For IBK Industrial Bank of Korea, its role as a policy lender supporting small and mid-sized enterprises and small merchants has become a drag on the stock. This year in particular, the bank has been pushing initiatives such as the “IBK-style Productive Finance 30-300 Project” and raising its target for SME loan supply, adding to upward pressure on risk-weighted assets (RWA). Given its obligation to carry out public-policy functions, IBK may face greater constraints than major financial holding groups in simultaneously managing capital ratios and expanding shareholder returns. Casino-related public enterprises Kangwon Land and Grand Korea Leisure (GKL) are also highly sensitive to policy variables. Kangwon Land is constrained by the revenue cap system and regulations on casino floor operations and gaming equipment, while GKL—an operator of foreigners-only casinos—sees its performance shaped by tourism policy and swings in inbound demand. As long as the government maintains its current stance on regulating the gambling industry, the companies are structurally limited in pursuing aggressive expansion like private-sector peers. Another factor cited behind the valuation discount is shareholder returns that fall short of expectations. The eight public corporations posted an average dividend payout ratio of 46.6% for fiscal 2025, a seemingly high figure. Analysts note, however, that this is largely an optical effect stemming from weaker net profit. Four companies—Korea Gas Corp. (KOGAS), KEPCO KPS, Kangwon Land and IBK—reduced dividends per share (DPS) from a year earlier. Korea Electric Power Corp. (KEPCO) has not issued a “value-up” disclosure for more than three years. KOGAS (treasury shares at 5.5%) and Kangwon Land (6.6%) hold treasury stock but have not announced plans to cancel those shares. The problem is that these entities are not only public institutions but also listed companies that influence household wealth formation. That runs counter to the current administration’s post-inauguration push—through three rounds of proposed revisions to the Commercial Act, including expanding directors’ fiduciary duties—to address the so-called “Korea discount.” The eight listed SOEs together have 1.24 million retail shareholders on a simple aggregate basis, and their combined retail ownership averages 33.6%, accounting for more than one-third of outstanding shares. Some argue that because “SOE status” itself functions as a discount factor, measures such as partial privatization are needed to support share prices. “Listed public corporations structurally suffer in valuation because of their public mandates. If they operate with an eye to what the government wants, they inevitably end up prioritizing government expectations over enhancing shareholder value,” said Heo Jae-hwan, head of the global macro team at Eugene Investment & Securities. “Not everything can be privatized, but opening parts of the market so private players can enter could be one approach,” he added. Others go further, raising the possibility of delisting. “The moment a company is listed, minority shareholders gain rights, and their voices must be heard,” said Lee Nam-woo, chairman of the Korea Corporate Governance Forum. “If the government must continue to be involved in key decision-making, it needs to make its choice clear—by buying out all outstanding shares and delisting some public enterprises,” he said. “Keeping companies half-listed while infringing on minority shareholder rights does not align with the government’s capital-market policy,” he added. sjyoon@chosunbiz.com ]]> https://it.chosun.com/news/articleView.html?idxno=2023092162964 https://it.chosun.com/news/articleView.html?idxno=2023092162964 Fri, 29 May 2026 12:00:00 +0900 jubar@chosunbiz.com (Byun In-ho) From left, Naver Search Platform head Kim Sang-beom, Chief Data and Content Officer Kim Gwang-hyun and Content Service head Lee Il-gu take questions at a media roundtable held at The Plaza Hotel on May 28. / IT Chosun Naver held a media roundtable at The Plaza Hotel in Jung District, Seoul, on May 28 and said it would expand its AI ecosystem with creators while strengthening its search and content competitiveness. The company is pursuing a strategy in which content, users and revenue reinforce one another to advance AI and search services. “Even in the AI era, the most important things are AI technology and content,” said Kim Gwang-hyun, Naver’s chief data and content officer. “It is not simply about having a large amount of data. High-quality data has driven model performance.” If more high-quality content is produced on services such as Naver Blog and Cafe, the quality of AI answers that cite such content improves. Better AI answers could lead to more users carrying out activities such as shopping and reservations within Naver through AI search. Naver said UGC has accounted for 70% of the content cited in AI Briefing since January. Naver plans to reinvest revenue generated through this process into creators and the broader content ecosystem. Starting in June, Naver will select an initial group of 3,000 creators from Blog, Cafe, Knowledge iN and Premium Contents through its creator support program, Naver Mate, and increase their exposure in search and AI services. Selected creators will receive 300,000 won per month. The top 100 creators by topic will receive 3 million won per month, while the top 10 creators will receive 10 million won per month. “Content is creating a difference in AI service experience,” said Lee Il-gu, head of Naver’s content service division. “We need to create a cycle in which good content leads to strong AI quality, and creators whose content is widely used are recognized and can grow.” Naver’s strategy resembles the flywheel strategy emphasized by Webtoon Entertainment, the North American arm of Naver Webtoon. The model rewards creators to increase content production. More content improves the user experience, which in turn leads back to creator rewards. The difference lies in the target area. While Webtoon Entertainment focuses on expanding global users by investing in the webtoon creator ecosystem, Naver is using UGC such as blogs, cafes and reviews as source data to improve the quality of AI search answers. The quality of source content is expected to become a key factor determining the quality of AI search results. Naver AI reads blog posts, cafe posts, reviews and official information, then summarizes them to generate answers. Concerns have been raised that if advertising posts or commercial content increase on Naver while posts based on real experiences decline, the credibility of AI answers could fall. Naver plans to assess content reliability not only at the level of individual posts but also at the creator level. This means the company will prioritize content from users with normal usage patterns when using material for AI search results. “Content cited in AI search is not evaluated only at the level of individual posts. One of the selection criteria is also how the user who uploaded the content has been active on Naver,” said Kim Sang-beom, head of Naver’s search platform division. “Posts created through businesses also contain factual information such as photos, menus and locations, so we are working to distinguish those elements and produce good answers.” jubar@chosunbiz.com ]]> https://it.chosun.com/news/articleView.html?idxno=2023092162747 https://it.chosun.com/news/articleView.html?idxno=2023092162747 Tue, 26 May 2026 12:00:00 +0900 swchun@chosunbiz.com (Cheon Sun-woo) Searching for terms like 'game refund site' or 'Google refund agency' on Google and Naver reveals dozens of refund agency services. Promotional text from a refund agency. / Screenshot from website When searching for terms like "game refund site" or "Google refund agency" on Google and Naver, dozens of refund agency services appear. These agencies attract users with promotional phrases such as "100% refund possible even after using items," "expert consultation," and "direct inquiry with headquarters." Refund agencies have grown by exploiting mobile game users' perception that app market refund procedures are difficult. In the case of Google Play Store, Google directly handles refunds within 48 hours of purchase, but after this period, users must contact the game company or app developer directly. In such cases, refund approval varies according to each game company's terms of service. Refund agencies charge fees of approximately 10-30% of the refund amount under the pretext of handling these procedures. The Korean Bar Association has interpreted that under the Attorney-at-Law Act, non-lawyers engaging in 'legal affairs' such as representing others' rights relief or dispute mediation for financial purposes is illegal. Google and Apple's app market terms of service also strictly prohibit sharing account and payment information with third parties or requesting refunds based on false pretenses. "Got the Money, But Account Permanently Suspended"... The Trap of Refund Agencies That Victimizes Gamers The problem is that the refund agency business causes significant side effects, including deceiving users through false advertising. Some agencies advertise that refunds are possible even for games from major game companies. However, Google Play Store does not accept any refund inquiries for games from major Korean game companies (Nexon, Netmarble, NCSOFT, etc.). Other agencies promote that refunds are possible solely based on reasons like continuous paid item releases, which are not the game company's fault such as item non-delivery. However, industry experts evaluate that such subjective reasons make refunds difficult in principle. This is because, under the Electronic Commerce Act, proof of objective defects in products or services must be established for refunds to be approved. The biggest problem occurs when some agencies attempt refunds by exploiting app market policies. While the actual refund reason is 'simple change of mind,' they apply for withdrawal to Google by changing it to reasons with higher success rates (minor's payment, system error). In such cases, game companies may recognize these as abnormal refund cases and impose account suspension or service usage restriction measures on users. In particular, receiving money by deceiving the platform after already using the goods can be subject to criminal prosecution for fraud (fraud using computers, etc.) and obstruction of business against game companies under criminal law. Cases of game accounts being suspended after using refund agencies are increasing in actual game communities. Some users have confirmed numerous opinions such as "I received the refund but game access was blocked" and "my account was permanently suspended for allegedly abusing refunds." Actual refund agency transactions are mostly conducted through KakaoTalk open chats. / Screenshot from website Growing Risks of Personal Information Leaks and Upfront Payment Scams Personal information leak risks are also pointed out. While some refund agencies operate websites, actual transactions often occur through KakaoTalk open chats. In this process, it's common to require users to provide Google/Apple account email addresses and passwords, names, addresses, and mobile phone numbers. Experts warn that the act of users handing over account information to third parties is extremely dangerous in itself, as it can lead to account takeover or personal information leaks. Places that require upfront fee payments should also be avoided. The possibility of so-called 'exit scam' damage, where they cut off contact after receiving upfront payments, cannot be ruled out. Attorney Kim Tae-rim of Axis Law Office stated, "There is currently no law requiring registration or permission for the refund agency business itself, so it's difficult to definitively call the business itself illegal," while pointing out that "however, the method of collecting users' account emails and passwords as is through open chat has potential violations of security obligations under the Personal Information Protection Act." He added, "Open chat is a channel accessible to many, and if collected authentication information is stored and managed on agency servers or devices without encryption, it directly leads to secondary damage in case of loss or leak," and "cases of damage from collecting upfront fees and disappearing or misusing collected account information are being repeatedly reported." The need for institutional improvements is also raised, given that the refund agency business is essentially operating outside the regulatory system. This is because even under the Electronic Commerce Act, there are no means of remedy if an account is suspended after using an agency service, and refund provisions for paid transactions are also missing from Game Industry Act amendments. Lee Chul-woo, Chairman of the Korea Game Users Association, said, "The refund agency business lacks clear regulations in information and communications network infringement, Fair Labeling and Advertising Act, or Electronic Commerce Act violations, making consumer damage relief difficult," and "the fact that there's no way for users to receive compensation when accounts are suspended for terms of service violations is a major problem.“ swchun@chosunbiz.com ]]> https://it.chosun.com/news/articleView.html?idxno=2023092162734 https://it.chosun.com/news/articleView.html?idxno=2023092162734 Tue, 26 May 2026 00:23:05 +0900 sjyoon@chosunbiz.com (Yoon Seung-jun) Headquarters buildings of Mirae Asset Securities and Korea Investment & Securities / Courtesy of each company According to the Korea Financial Investment Association (KOFIA) on the 22nd, total IMA liabilities at the three securities firms designated as IMA operators stood at 273.79 billion won as of end-March. That was an increase of 158.37 billion won from 115.42 billion won at the end of last year. Over the same period, issued-note liabilities at the seven licensed issued-note operators rose by 315.30 billion won, from 51.2743 trillion won to 54.4273 trillion won. Combined, the increase totaled 473.67 billion won. By firm, Korea Investment & Securities—operating both IMA and issued notes—posted the largest rise at 1.5403 trillion won, followed by Mirae Asset Securities at 1.1135 trillion won. Next came Kiwoom Securities at 839.3 billion won and Hana Securities at 683.3 billion won, both newly designated as issued-note operators. They were followed by KB Securities, an existing issued-note operator, at 514.0 billion won, and Shinhan Investment Corp., also newly designated, at 198.5 billion won. An IMA is a performance-linked product offered by “mega investment banks” (comprehensive financial investment business operators) with at least 8 trillion won in equity capital. Under the IMA scheme, securities firms take customer deposits and invest them in corporate finance assets—such as corporate loans and corporate bonds—to generate returns. Issued notes are short-term instruments with maturities of up to one year that brokerage firms issue on the strength of their own credit. Customers deposit funds, and the firm repays principal plus a predetermined interest rate. Brokerages’ IMA and issued notes in the first quarter / Reporter Yoon Seung-jun Funds have been gravitating toward IMA and issued-note products due to their perceived investment appeal. According to the Korea Federation of Banks, the average rate on bank installment savings products was 2.6%. That compares unfavorably with IMA’s base target return of 4.0% or higher and issued-note rates of 3.3% to 3.6% (for fixed-rate offerings). Against that backdrop, the outstanding balance of installment savings at deposit-taking banks fell by more than 2 trillion won, from 64.5403 trillion won at the end of last year to 62.1108 trillion won at end-March. Still, questions remain over whether securities firms can generate substantial profits through IMA and issued notes. Korea Investment & Securities and Mirae Asset Securities generated profits of 9.646 billion won and 65 million won, respectively, over three months through their first IMA products launched in December last year. Based on their subscription amounts, that translates into returns of roughly 0.9% and 0.1%. Both lagged the KOSPI’s gain of 31.6% over the same period by more than 30 percentage points. Korea Investment & Securities built its portfolio mainly around loans (53.1%) and beneficiary certificates/fund units (40.3%), while Mirae Asset Securities allocated its portfolio largely to bonds (79.3%). If the three-month operating income is annualized using a simple extrapolation, the implied annualized return would be 3.6% and 0.3%, respectively—both below the base target return (4.0% or higher). Three-month IMA investment returns at Korea Investment & Securities and Mirae Asset Securities / Reporter Yoon Seung-jun Market participants expect that if competition intensifies in the IMA and issued-note space, investment yields could fall further. Under the rules, issued notes must be deployed with at least 50% of raised funds allocated to corporate finance, while IMA requires 70% or more. In practice, that could concentrate funding into top-tier borrowers and push up funding costs. Another burden is the mandatory venture-capital allocation, which requires at least 25% to be filled with early-stage company investments. Ahn Su-jin, senior researcher at NICE Investors Service, said that as the number of licensed securities firms increases, funding competition will intensify, expanding upward pressure on funding costs. “It will be even harder to secure investable assets that can generate returns exceeding funding costs,” she said. She added that the limited supply of high-quality deals is the biggest constraint, warning that structurally overheated competition for deals could lead to narrower spreads and looser investment terms. Others also warned that the pursuit of returns could raise risk. Kim Ye-il, a senior analyst at Korea Ratings, said, “Given that securities firms ultimately bear the final loss burden, it is appropriate to view (IMA and issued notes) as direct investments from a risk perspective. An expansion of direct investment can lead to greater earnings volatility and a higher risk of asset deterioration.” He added that, as competition heats up and firms seek higher-yielding assets, concentration into “fad” assets such as overseas private credit could intensify. Concerns have also been raised that profitability may deteriorate in a rising-rate environment. In the case of issued notes, firms typically raise funds short-term and invest in longer-maturity assets. When rates rise, funding costs increase first, while returns on invested assets reflect higher rates with a lag. According to NICE Investors Service, in the second half of 2022—when policy rates rose sharply—issued-note rates climbed quickly, but portfolio yields failed to catch up, and brokerage firms’ issued-note accounts recorded losses from 2022 through 2023. Ahn said that without adequate deal-sourcing capabilities and screening infrastructure, the process of meeting mandatory ratios could tilt portfolios toward assets with weaker profitability and soundness. She added that early movers expanding into overseas corporate-finance deals can be seen as a response to structural limits in the domestic market, and stressed that firms should prioritize building systems for sourcing quality deals, strengthening capabilities, improving industry-by-industry underwriting expertise, and establishing professional post-investment management frameworks before pursuing balance-sheet growth. sjyoon@chosunbiz.com ]]> https://it.chosun.com/news/articleView.html?idxno=2023092162733 https://it.chosun.com/news/articleView.html?idxno=2023092162733 Tue, 26 May 2026 00:16:34 +0900 sjyoon@chosunbiz.com (Yoon Seung-jun) From left in the photo: Kim Dong-kwan, vice chairman of Hanwha Group; Kim Dong-won, president of Hanwha Life Insurance; and Kim Dong-seon, vice president of Hanwha Galleria. / Chosun DB According to the Financial Supervisory Service’s electronic disclosure system (DART) on the 19th, Chairman Kim gifted half of his 22.65% stake in Hanwha Corp.—11.32%—to his three sons in March last year. Based on the average closing price over the two months before and after the gift valuation date (April 30, 2025), the three heirs—Hanwha Group Vice Chairman Kim Dong-kwan, Hanwha Life President Kim Dong-won and Hanwha Galleria Vice President Kim Dong-seon—are estimated to have paid 296.6 billion won in gift tax (assuming a 60% tax rate). Focusing only on the eldest son, Vice Chairman Kim Dong-kwan, who received 4.85%, his estimated gift tax burden was 127.1 billion won. With Vice Chairman Kim later increasing his stake to 9.76%, Hanwha is now seen as having largely completed its third-generation succession. Compared with other groups, Hanwha is widely viewed as having achieved relatively effective tax minimization. After the late LG Group Chairman Koo Bon-moo died in May 2018, LG Group Chairman Koo Kwang-mo and his two siblings inherited Koo’s 11.28% stake in LG Corp. If the inheritance tax is estimated using the average closing price over the two months before and after the inheritance start date, the bill comes to about 867.2 billion won. At the time of inheritance and gifting, the market capitalization figures stood at 96.9783 trillion won for LG Group and 87.3568 trillion won for Hanwha Group, meaning Hanwha secured group-wide control at a relatively lower cost. In the year the inheritance and gift transfers took place, the LG siblings’ stake in LG Corp. was 18.58%, while the three Hanwha brothers’ stake in Hanwha Corp. was 20.52%. Hanwha’s tax savings also stand out compared with other chaebol families that completed succession work around a similar period. In Shinsegae’s case, Group Chairman Chung Yong-jin and Shinsegae Co. Chairwoman Chung Yoo-kyung took over discount-store and department-store control after receiving gifts from their mother, General Chairwoman Lee Myung-hee, in September 2020—8.22% of E-Mart for Chung Yong-jin and 8.22% of Shinsegae Co. for Chung Yoo-kyung. Their combined gift tax is estimated at 296.3 billion won. In February last year, Chung Yong-jin spent 225.1 billion won to buy the remaining 10% stake held by Lee. In April that year, Chung Yoo-kyung also received Lee’s remaining 10% stake as a gift (estimated gift tax: 100.3 billion won). Over the past six years, the two have paid a combined 621.8 billion won in gift taxes and share-purchase costs. In Samsung’s case, the succession was largely completed before the death of the late Chairman Lee Kun-hee in October 2020. Samsung Electronics Executive Chairman Lee Jae-yong paid 3.006 trillion won in inheritance tax on about 5 trillion won worth of listed shares in Samsung C&T, Samsung Life Insurance, Samsung Electronics and Samsung SDS that he inherited. The estimated inheritance tax for Hotel Shilla President Lee Boo-jin was 2.729 trillion won, while Samsung C&T President Lee Seo-hyun’s was 2.4521 trillion won. The three completed payment of their inheritance taxes in April. Estimated inheritance and gift taxes on listed shares for LG, Hanwha and Shinsegae Groups / Reporter Yoon Seung-jun Hanwha’s ability to finish succession at a relatively low cost stems from the fact that Hanwha Energy—effectively a “family company”—sat at the top of the group’s governance structure and controlled Hanwha Corp. Hanwha Energy’s shareholders include Vice Chairman Kim Dong-kwan (50%), President Kim Dong-won (20%) and Vice President Kim Dong-seon (10%). Hanwha Energy, which previously held 9.7% of Hanwha Corp., acquired an additional 12.45% through a tender offer in July 2024 and after-hours block trades in December 2024. With Chairman Kim’s gift of 11.32% to his three sons the following year, Hanwha Energy rose to become the largest shareholder of Hanwha Corp. Hanwha Energy traces its origins to Hanwha S&C, founded in 2001 with paid-in capital of 3 billion won. Initially, Hanwha Corp. held 66.67% and Chairman Kim held 33.33%. In 2005, Hanwha Corp. transferred its entire stake to Vice Chairman Kim for 2 billion won (purchase price per share: 5,100 won), after which Chairman Kim transferred stakes to his other sons for 500 million won each (16.5% each). The three brothers thus became the de facto controlling shareholders. Hanwha S&C remained an unlisted family firm, expanding the brothers’ control through capital increases and strengthening group-wide influence through investments in affiliate stakes. In 2017, Hanwha S&C was split into H Solution and Hanwha S&C, and Hanwha Energy was incorporated as a subsidiary of H Solution. Then in 2021, Hanwha Energy absorbed its parent H Solution via a merger, and that same year Hanwha Energy acquired 5.46% of Hanwha Corp. as it accelerated succession preparations. Share of sales to related parties at Hanwha S&C, H Solution and Hanwha Energy / Reporter Yoon Seung-jun In effect, the company that started as Hanwha S&C became H Solution through the 2017 split (with the post-split Hanwha S&C later absorbed into Hanwha Systems), and then changed back to Hanwha Energy after Hanwha Energy’s 2021 absorption of H Solution (which was dissolved). The issue is that Hanwha Energy—effectively acting as a holding company for Hanwha Corp.—generated a substantial portion of its sales from business with group affiliates, thereby lowering the cash burden needed for succession. A review of consolidated audit reports shows that from 2005 to 2016 Hanwha S&C recorded 7.8812 trillion won in sales, of which 3.9108 trillion won (49.6%) came from transactions with affiliates and other related parties. During the H Solution period, from 2017 to 2020, the share of related-party sales was also high at 29.9%. From 2021 through last year, related-party sales accounted for 18.5% of Hanwha Energy’s revenue—still significant. After the merger, Hanwha Energy’s spending on purchasing Hanwha Corp. shares amounted to 116.4 billion won in 2021 and 151.9 billion won in 2024. Having grown on the back of group revenue, the company could be used as a “cash channel” for the owner family. In November last year, Hanwha Energy paid an interim dividend, distributing 100 billion won to the three brothers—nearly matching its separate net profit of about 120.6 billion won. Based on their shareholdings, Vice Chairman Kim is estimated to have received 50 billion won, while President Kim and Vice President Kim each received 25 billion won. At the end of last year, President Kim and Vice President Kim also sold 5% and 15% of their Hanwha Energy stakes, respectively—an estimated 276.4 billion won for President Kim and 829.1 billion won for Vice President Kim. With gift taxes being paid in installments over five years under a deferred-payment scheme, the proceeds are expected to be used as a funding source for gift tax payments or for buying stakes as part of a future process to establish independent management systems, such as a potential affiliate split. Kim Woo-chan, a professor at Korea University Business School, said, “The company became Hanwha Energy through a series of splits and mergers, and the gains can be viewed as having been obtained through preferential business allocation,” adding, “There was controversy in the past over the alleged bargain-price sale process by which Hanwha Corp. transferred its Hanwha S&C stake to the owner family’s children, and it was a case that could negatively affect other shareholders, given that better-quality services might have been received if transactions had been made with other companies.” sjyoon@chosunbiz.com ]]> https://it.chosun.com/news/articleView.html?idxno=2023092162634 https://it.chosun.com/news/articleView.html?idxno=2023092162634 Fri, 22 May 2026 13:16:23 +0900 onej@chosunbiz.com (Han Jae-hee) Officials at the Financial Services Commission (FSC) headquarters in central Seoul. /News1 According to the financial industry on May 21, authorities have already finalized most discussions within the “Governance Advancement Task Force (TF),” which has been operating since late last year. The TF is understood to have focused on issues such as improving transparency in chairman selection procedures, strengthening the independence of outside directors, reforming the operation of chairman recommendation committees, and expanding accountability for internal controls at subsidiaries. However, internal reviews over the intensity of the policy measures are reportedly dragging on ahead of the final announcement. Officials are said to be coordinating which best-practice recommendations, currently voluntary in nature, should be incorporated into the Financial Company Governance Act. Both inside and outside the financial sector, there is speculation that the delay reflects not merely scheduling issues but also shifts in sentiment within the presidential office and financial regulators. Some observers believe the presidential office is pushing for governance reforms that are tougher than those initially outlined by the TF. Differences in opinion appear particularly pronounced regarding the expansion of the National Pension Service’s (NPS) role and restrictions on long-term CEO tenures. Financial Supervisory Service (FSS) Governor Lee Chan-jin has previously argued that encouraging the NPS to recommend outside directors is necessary to strengthen the independence of financial holding company boards. Lee has publicly advocated for a more active NPS role in nominating outside directors since his time as a member of the NPS Fund Management Committee. There are also calls to ease the burden imposed by the so-called “5% rule” and “10% rule” under the Capital Markets Act if the NPS is to play a more active role in nominating outside directors. The 5% rule requires investors holding more than a 5% stake in a listed company—or increasing their stake further—to disclose such holdings to the market. The 10% rule requires major shareholders to return profits gained from short-term stock trading to the company. Under current regulations, if an investment purpose is interpreted as management participation, disclosure obligations and restrictions on short-swing profits become stricter. Critics argue that this effectively discourages the NPS from actively intervening in the governance of financial holding companies. The FSC, however, maintains that the NPS can sufficiently recommend outside directors even under the current framework. In fact, during a 2017 interpretation of stewardship code regulations, the FSC concluded that even if the NPS held more than a certain level of shares, actions such as recommending outside directors or requesting higher dividends would not constitute management participation as long as the investment purpose remained classified as “general investment.” As a result, the NPS may be able to nominate outside directors without being subject to enhanced disclosure requirements under the 5% rule or short-swing profit return obligations under the 10% rule. The industry is closely monitoring the broader implications of expanding the NPS’s influence. Concerns are emerging that if the NPS’s ownership stakes exceed 10%, or if it becomes deeply involved in chairman recommendation committees and outside director appointments, government influence could effectively become embedded in the governance structure of financial holding companies — reviving fears of state intervention in management. Another contentious issue is whether to limit CEO reappointments. President Lee Jae-myung has sharply criticized the current outside director system at financial firms as a “corrupt inner circle,” while FSS Governor Lee Chan-jin has likened it to “digging trenches.” Controversies surrounding the qualifications of candidates in recent CEO selection processes at financial groups such as BNK Financial Group and JB Financial Group have further fueled debate. At the center of the discussion is whether to legally impose a “three-term limit” on chairmen. Lawmakers including Democratic Party Rep. Kim Hyun-jung and Rebuilding Korea Party Rep. Shin Jang-sik have each proposed amendments to the Financial Company Governance Act that would require special shareholder approval for chairman reappointments and prohibit a third consecutive term. Even within regulatory circles, however, there are concerns that explicitly codifying a “three-term limit” in the governance law could trigger controversy over fairness and regulatory consistency. Attention is now turning to whether financial authorities will provide clearer direction on governance reform during a meeting hosted later that day by FSC Chairman Lee Eok-won. onej@chosunbiz.com ]]> https://it.chosun.com/news/articleView.html?idxno=2023092162616 https://it.chosun.com/news/articleView.html?idxno=2023092162616 Fri, 22 May 2026 12:00:00 +0900 jubar@chosunbiz.com (Byun In-ho) / AI-generated image by ChatGPT According to industry sources, Kakao, Kakao Mobility and Texas Pacific Group (TPG), the second-largest shareholder of Kakao Mobility, recently launched a shareholder value enhancement committee. The committee is a consultative body tasked with discussing ways to raise Kakao Mobility’s corporate value. It is known to be reviewing Kakao Mobility’s listing structure, investor exit options and possible governance restructuring. Kakao Mobility is seen as facing an urgent need to provide an exit for existing investors. TPG Consortium, the second-largest shareholder of Kakao Mobility, invested 500 billion won and 140 billion won in Kakao Mobility in 2017 and 2021, respectively. With the investment period approaching 10 years, the consortium is considered to have reached a point where it needs to recover its investment through an initial public offering (IPO) or a stake sale. The problem is that it is difficult to push ahead with an IPO for Kakao Mobility. Kakao Mobility is a major affiliate of the Kakao group. The government is pushing to ban, in principle, the duplicate listing of subsidiaries and affiliates of listed companies on the stock market. The move is based on the view that duplicate listings damage shareholder value and have contributed to lower corporate valuations and sluggish stock performance in Korea. One condition being discussed for exceptional approval of duplicate listings is securing consent from ordinary shareholders of the parent company. Kakao says it has no plan to pursue an IPO for Kakao Mobility. A Kakao Mobility official said, “We are reviewing various options to enhance corporate value.” Unlike Kakao, Naver is pressing ahead with Naver Financial’s merger with Dunamu through a comprehensive share swap despite the regulatory burden. Naver Financial and Dunamu disclosed that they plan to form an IPO committee within one year after completing the share swap and pursue an IPO within five years from the completion date. If Naver absorbs Dunamu, the operator of Upbit, it will have to respond to major shareholder ownership restrictions for virtual asset exchanges under the Basic Act on Virtual Assets as well as duplicate listing regulations from financial authorities. Financial authorities have yet to release detailed guidelines on duplicate listing regulations. The Financial Services Commission and the Korea Exchange are said to be focusing on preparing detailed improvement measures to address the duplicate listing issue. Lee Eok-won, chairman of the Financial Services Commission, said at a public seminar on duplicate listing system improvements in April that the plan to ban duplicate listings in principle is “an application of the duty of loyalty to shareholders to the listing system.” Lee said, “We will strictly distinguish between asymmetric duplicate listings and duplicate listings that create new value for all shareholders during the review process.” jubar@chosunbiz.com ]]> https://it.chosun.com/news/articleView.html?idxno=2023092162612 https://it.chosun.com/news/articleView.html?idxno=2023092162612 Thu, 21 May 2026 20:11:07 +0900 viayou@chosunbiz.com (유은정 기자) /News1 According to the securities industry on May 21, eight asset management firms — Samsung, Mirae Asset, Korea Investment, KB, Shinhan, Hanwha, Kiwoom and Hana Asset Management — plan to list the products. The newly listed ETFs will include leveraged products that track twice the daily share-price returns of Samsung Electronics and SK hynix, as well as inverse products that allow investors to bet twice on declines in those stocks. Investor interest is expected to be strong, as Samsung Electronics and SK hynix have effectively led this year’s KOSPI rally. To trade the products, investors must complete the Korea Financial Investment Association’s mandatory “single-stock leveraged and inverse exchange-traded product pre-trading education” program. The products are considered high-risk instruments with significant price volatility. In addition to the existing one-hour pre-trading education requirement, investors must complete an additional one-hour advanced course, bringing the total required training time to two hours. From April 28, when the education program began, through May 19, 85,306 people had applied for the course and 79,286 had completed it. The number of graduates has been rising as the launch date approaches. Amid heightened volatility in the domestic stock market, financial authorities have warned of potential losses for retail investors and asked the industry to avoid excessive competition. At the second Consumer Risk Response Council meeting on May 18, Financial Supervisory Service Governor Lee Chan-jin said, “As stock market volatility continues, we must maintain a high level of vigilance against financial companies encouraging excessive leveraged investment or margin-financed trading, as well as market-disruptive activities by some financial influencers.” The FSS also plans to monitor the management status, tracking errors, premium and discount levels, and trading trends of leveraged and inverse ETFs. It will also examine the industry’s marketing practices to determine whether investors are being properly informed about the structure and risks of leveraged products. Brokerages, however, are actively conducting promotional campaigns ahead of the launch. KB Securities is offering a 5,000 won domestic stock coupon to the first 50,000 customers who complete the single-stock leveraged and inverse product education program and register their completion number by June 30. The firm is also offering Samsung Electronics premium home appliances through a prize draw. Kiwoom Securities is offering coffee gift vouchers to up to 20,000 customers selected by lottery after they register their education completion number. Korea Investment & Securities is giving 4,000 won to the first 5,000 customers who register their completion number by the end of this month, while also offering benefits worth 50,000 won to 200 customers selected by lottery. Industry officials stress that investors should understand the structural risks of leveraged products before investing. Even if an underlying stock or index falls and later returns to its original level, investors in leveraged products may still incur losses. This is because the products track twice the daily price movement, meaning losses occur on a larger base while subsequent gains are calculated from a smaller base. As a result, investors may see their principal gradually erode even in a sideways market. “Losses can be greater in a range-bound market where there is no clear directional trend,” an industry official said. “Even if the underlying index does not move significantly, leveraged products can accumulate losses as repeated volatility is reflected in their returns. Investors need to fully understand this structure before trading.” viayou@chosunbiz.com ]]> https://it.chosun.com/news/articleView.html?idxno=2023092162378 https://it.chosun.com/news/articleView.html?idxno=2023092162378 Tue, 19 May 2026 12:00:00 +0900 jubar@chosunbiz.com (Byun In-ho) / Image generated by ChatGPT Wavve recently added regional news from cable TV operators and regional commercial broadcasters to its news section. The addition brings LG HelloVision’s live regional news channel, as well as live channels and video-on-demand content from regional commercial broadcasters including KNN, JTV, CJB and TJB, to Wavve. Previously, the platform mainly offered news content from terrestrial broadcasters such as KBS, MBC and SBS, along with comprehensive programming and news channels including TV Chosun, MBN, JTBC, YTN and Yonhap News TV. With Wavve’s expansion into regional news, content that had been distributed mainly through cable TV operators and regional commercial broadcasters can now be viewed on an OTT platform. Wavve has secured live broadcast channels and daily news content. Cable TV operators and regional commercial broadcasters have gained a way to reach OTT users. Regional news is content produced under the legal obligation imposed only on cable TV operators to operate regional channels. Under the Broadcasting Act, system operators such as cable TV companies are required to operate regional channels. IPTV and OTT services are not subject to that obligation. Regional channels cover local disasters, elections, incidents and accidents. These regional channels have long been cited as a factor undermining regulatory fairness for the cable TV industry. Even as IPTV expanded and OTT platforms grew, the obligation remained imposed only on cable TV operators. But as OTT platforms begin to distribute regional news, cooperation between cable TV operators and OTT platforms is becoming visible. The issue is IPTV. Except for discounts through bundled mobile telecom plans, IPTV overlaps considerably with OTT in terms of functions. If OTT platforms also carry the live broadcast channels that viewers used to watch on IPTV, the reasons to use IPTV will inevitably diminish. OTT platforms are already absorbing live channels overseas. Amazon’s OTT service Prime Video has created a dedicated news section in the U.S. and offers news channels affiliated with ABC, CBS, Fox, CNN and NBC. Users can watch local, national and global news within the OTT platform. Netflix also provides live broadcast channels. Starting this summer, Netflix plans to offer live broadcast channels and VOD content from TF1 Group in France. TF1 Group operates French commercial broadcaster TF1 and news channel LCI. TF1 Group’s broadcast channels are known to have about 58 million monthly average viewers. “IPTV’s room to stand apart is clearly narrowing,” an official from the broadcasting industry said. “At the same time, OTT platforms can be seen as taking over the role of IPTV, so the issue of regulatory fairness is likely to become more significant.” jubar@chosunbiz.com ]]> https://it.chosun.com/news/articleView.html?idxno=2023092162304 https://it.chosun.com/news/articleView.html?idxno=2023092162304 Mon, 18 May 2026 12:00:00 +0900 swchun@chosunbiz.com (Cheon Sun-woo) / ChatGPT-generated image  Nexon and Krafton Prove Franchise IP Strength… Netmarble Benefits from Multiple Releases According to the gaming industry on the 16th, Nexon achieved its largest quarterly performance ever in Q1 with revenue of 1.42 trillion won and operating profit of 542.6 billion won—up 34% and 40% year-over-year respectively. This was driven by the MapleStory franchise and the success of Ark Raiders. The company saw particularly strong responses in North America, Europe, and Southeast Asia. Revenue from North America and Europe more than quadrupled year-over-year, while sales in Southeast Asia and other regions more than doubled. Overall overseas revenue increased 59% year-over-year, reaching a quarterly record. Krafton also posted record-breaking results with revenue of 1.37 trillion won and operating profit of 561.6 billion won, up 56.9% and 22.8% year-over-year respectively. The PUBG franchise exceeded 1 trillion won in quarterly revenue for the first time, with both PC and mobile maintaining stable user metrics and driving revenue growth. Netmarble continued its growth trajectory thanks to new releases, recording Q1 revenue of 651.7 billion won and operating profit of 53.1 billion won—up 4.5% and 6.8% year-over-year. New titles such as "StoneAge Raising" and "The Seven Deadly Sins: Origin" contributed to this growth. Starting with "Mongil: Stardive" launched on April 14, Netmarble plans to release five new titles sequentially from Q2, raising expectations for stepped growth. 'New Release Jackpot' Effect… Operating Profit Surges 20x for NC, 26x for Pearl Abyss NC broke free from last year's losses and successfully improved profitability. The company recorded Q1 consolidated revenue of 557.4 billion won and operating profit of 113.3 billion won—up 55% and 2,070% year-over-year respectively. "Aion 2" launched in November last year and the success of "Lineage Classic" led the performance improvement. As a result, PC game revenue reached 318.4 billion won, surpassing mobile game revenue. Pearl Abyss also reaped significant benefits from its new title "Crimson Desert." The game generated 266.5 billion won in revenue, more than four times that of the existing flagship Black Desert IP. The game sold over 5 million copies within 26 days of release, creating a major impact in the global market. Consequently, Pearl Abyss's Q1 revenue increased more than fourfold year-over-year, while operating profit surged more than 26-fold. Mid-Tier Game Companies Face 'Lean Times'… Kakao Games, Webzen, Devsisters See Profitability Plunge Meanwhile, some mid-tier game companies showed weak performance. Kakao Games fell into its sixth consecutive quarter of losses, with Q1 revenue of 82.9 billion won and operating loss of 25.5 billion won. Compared to last year, revenue decreased 33% while losses more than doubled. The downward stabilization of existing live titles and the absence of new releases are cited as causes. Webzen also continued to struggle, with Q1 revenue of 39.3 billion won and operating profit of 5.3 billion won—down 5.2% and 39.6% year-over-year respectively. "Dragon Sword," launched early this year, was expected to contribute to performance, but service operations were disrupted due to conflicts with the developer. Combined with declining revenue from the flagship MU series and no scheduled new releases, losses are expected in Q2. Devsisters recorded Q1 revenue of 58.5 billion won and operating loss of 17.4 billion won. Revenue decreased 40.8% year-over-year, and operating profit turned to losses. The company has been in the red since Q3 last year. Poor new release performance and declining revenue from existing IPs are believed to have affected the deteriorating results. Devsisters has embarked on management reforms including unpaid executive compensation, voluntary retirement programs, and hiring freezes to cut costs. Simultaneously, the company is focusing its investment strategy on titles with high success probability and plans to completely review new projects based on profitability criteria. An industry source said, "Q1 this year showed a clear difference between major and mid-tier game companies," adding, "Some mid-tier companies have entered survival mode due to prolonged downturn, but difficulties will continue for the time being unless meaningful new release successes are achieved." swchun@chosunbiz.com ]]> https://it.chosun.com/news/articleView.html?idxno=2023092162264 https://it.chosun.com/news/articleView.html?idxno=2023092162264 Sun, 17 May 2026 01:47:54 +0900 sjyoon@chosunbiz.com (Yoon Seung-jun) A view of Yeouido’s brokerage district / News1 According to the securities industry on the 15th, the combined consolidated net profit (preliminary) of the top 10 securities firms by equity capital totaled 4.3318 trillion won in the first quarter. This marks a 113.7% jump from 2.0272 trillion won a year earlier. In other words, the industry posted in a single quarter earnings close to half of last year’s full-year net profit of 8.9731 trillion won. Seven of the 10 firms—Mirae Asset, Korea Investment, NH, Samsung, KB, Shinhan and Kiwoom—set record-high quarterly results. By firm, Mirae Asset Securities posted the largest net profit at 1.0019 trillion won, followed by Korea Investment & Securities at 784.7 billion won. Next came Kiwoom Securities (477.3 billion won), NH Investment & Securities (475.7 billion won), Samsung Securities (450.9 billion won), KB Securities (350.2 billion won), Shinhan Investment Corp. (288.4 billion won), Meritz Securities (254.3 billion won), Daishin Securities (145.5 billion won) and Hana Securities (102.8 billion won). Brokerage commission income led the strong performance. Among seven firms that disclosed revenue by item in their first-quarter earnings releases—Mirae Asset, Korea Investment, NH, Samsung, Meritz, Kiwoom and Shinhan—brokerage commission income (from consignment trading and custody services) totaled 2.1701 trillion won, up 151.1% from 864.1 billion won a year earlier. By firm, the largest amounts were posted by Mirae Asset (459.4 billion won), Kiwoom (365.5 billion won), NH (349.5 billion won), Samsung (349.3 billion won) and Korea Investment (313.8 billion won). Brokerages earn commissions by intermediating investors’ stock trades, and as trading value surged, their fee income rose accordingly. According to the Korea Exchange (KRX), the average daily trading value of domestic stocks in the first quarter came to 62.0387 trillion won (including ETFs), nearly tripling from 22.5491 trillion won a year earlier. While overseas stock settlement amounts were expected to fall sharply amid government efforts to encourage a return to domestic equities, the average daily settlement amount slipped only 0.4% year on year to $2.44495 billion (about 3.6 trillion won). Consolidated net profit of the top 10 securities firms by equity capital / By Yoon Seung-jun Trading results also improved as stock prices at home and abroad surged despite rising market interest rates. Trading gains and losses reported by eight securities firms—Mirae Asset, Korea Investment, NH, Samsung, Meritz, KB, Kiwoom and Shinhan—came to 2.2424 trillion won, up 44.2% from 1.5556 trillion won a year earlier. The stock-market rally also translated into higher wealth-management (WM) fee income. WM fee revenue at six firms—Mirae Asset, Korea Investment, NH, Samsung, Meritz and Shinhan—nearly doubled over the same period, rising 97.2% from 204.5 billion won to 403.3 billion won. Proprietary investment (PI) also paid off. Mirae Asset Securities booked 804.0 billion won in gains and losses from fair-value valuation of investment assets in the first quarter, reflecting valuation gains from global innovators such as SpaceX. The firm has invested in SpaceX and other companies through vehicles including the “Mirae Asset Global Space Investment Partnership No. 1.” Despite the strong earnings, share prices have been largely flat. After surging more than 80% from the start of the year through late February, the KRX Securities Index has risen just 0.9% since the outbreak of the Middle East war—far below the KOSPI’s 27.8% gain over the same period. By company, aside from Samsung Securities (21.7%), shares of Mirae Asset Securities (0.4%), Korea Financial Group (-0.2%), NH Investment & Securities (-1.4%), Kiwoom Securities (-9.9%) and Daishin Securities (-20.3%) have all underperformed. Analysts said elevated valuations—share prices relative to earnings—have weighed on the stocks. Ahn Young-joon, an analyst at Kiwoom Securities, said, “First-quarter earnings at brokerages were broadly strong, supported by a rise in stock trading value, and share prices climbed as the market priced that in ahead of time.” He added, “However, the perception that it will be difficult for trading value to remain at current levels throughout the year appears to have pressured investor sentiment, leading some investors to take profits.” While recent share-price momentum has cooled, the market outlook for brokerage stocks remains positive. Market weakness triggered by the Middle East war recovered within a month, keeping trading value on an upward trajectory, and additional drivers—such as the launch of an integrated account service for foreign investors—have emerged to support further growth in trading value. The integrated account service allows foreign investors to buy and sell Korean stocks more easily via overseas brokerages, without opening personal accounts directly with Korean securities firms. Ahn said, “Compared with the past, it is clear that the overall level of stock trading value has risen, and that can provide a stronger earnings base for brokerages.” He added, “It is still hard to say the effects of the integrated account system change have become clearly visible, but with a new channel for bringing in investors now open, expectations for higher trading value are more likely to be reflected. We maintain a positive view.” sjyoon@chosunbiz.com ]]> https://it.chosun.com/news/articleView.html?idxno=2023092162262 https://it.chosun.com/news/articleView.html?idxno=2023092162262 Sun, 17 May 2026 01:40:33 +0900 sjyoon@chosunbiz.com (Yoon Seung-jun) A view of the securities industry / Chosun DB According to an analysis of business reports filed on the Financial Supervisory Service’s electronic disclosure system (DART) on the 12th, the top 10 securities firms—Korea Investment & Securities, Mirae Asset Securities, NH Investment & Securities, Samsung Securities, Meritz Securities, KB Securities, Hana Securities, Kiwoom Securities, Shinhan Securities, and Daishin Securities—posted combined equity investments in other companies totaling 1.8171 trillion won last year. That figure marks an 82.6% increase from the previous year’s 994.9 billion won. Valuation gains and losses—reflecting changes in the value of stakes held—expanded 597.9%, from 309.1 billion won to 2.1573 trillion won. By firm, Korea Investment & Securities recorded the largest PI-related valuation gains and losses at 893.2 billion won. The company that contributed most to the rise in valuation gains and losses (excluding affiliates and companies in which it participates in management) was Woori Financial Group, generating 341.5 billion won in valuation gains and losses. Korea Investment & Securities has been benefiting from valuation gains for a decade after joining the privatization process of Woori Bank in 2016 as a consortium shareholder, securing a 4% stake (now 3.7%). Its cumulative return has reached 133.3%. Overseas investments also delivered sizable gains. In September last year, Korea Investment & Securities made a capital commitment to “Korea Investment Global Private Investment” and booked 276.3 billion won in valuation gains and losses. The vehicle is a private equity fund (PEF)-type entity established to invest in global new-growth sectors such as artificial intelligence (AI), semiconductors, and biotech. As it is a private fund, its portfolio holdings have not been disclosed. The “Korea Investment Re-Up II Fund,” which invests in U.S. unicorns—unlisted companies valued at $1 billion or more—also ranked among the top performers, with 9.6 billion won in valuation gains and losses. Korea Investment & Securities has invested 69.8 billion won in the fund since 2022 for a 16.6% stake, and it is said to include partial exposure to companies such as Anthropic and xAI. Meanwhile, the “Korea Investment Continuation I Fund,” into which Korea Investment & Securities has poured 24.0 billion won since 2024 for an 80.0% stake, invests in SpaceX by purchasing secondary shares held by SpaceX employees. Increase in proprietary investment (PI) by the top 10 securities firms last year and related valuation gains and losses / By Yoon Seung-jun It also booked 130.0 billion won in valuation gains and losses from the “Welltosea Investment No. 2” private equity fund (PEF), which holds assets including defense parts maker MNC Solution. In addition, it holds stakes in a range of domestic unlisted companies, including SK On (0.7%), Lotte Global Logistics (14.0%), Kakao Mobility (0.2%), Zigbang (0.5%), and preferred shares in Viva Republica. Mirae Asset Securities posted sizable valuation gains and losses from the Naver Group. Of its 155.9 billion won in valuation gains and losses last year, profits from Naver and Naver Financial came to 122.8 billion won and 35.4 billion won, respectively. Mirae Asset Securities invested 500.0 billion won in Naver (a 1.8% stake) in 2017 and 679.3 billion won in Naver Financial (25.5%) in 2020. Compared with the book value at the end of last year, the cumulative return stands at about 36.5% and 69.6%, respectively. Naver Financial is set to merge with Dunamu, the parent company of cryptocurrency exchange Upbit. If the post-merger joint venture pursues a U.S. listing, the book value of Mirae Asset Securities’ stake in Naver Financial is expected to rise further. Fund investments also delivered strong results. It earned 16.0 billion won from the “Mirae Asset–LG Electronics New Growth Investment Partnership No. 1,” which invests in promising startups at home and abroad, and 11.3 billion won from the “Mirae Asset–KT&G New Growth Investment Partnership No. 1,” which focuses on healthcare, ESG and new-growth companies. While valuation gains and losses have not yet been recognized, Mirae Asset is investing in global space company SpaceX through the “Mirae Asset Global Space Investment Partnership No. 1” (89.57% stake) and the “Mirae Asset Global Sector Leader Investment Partnership No. 1” (95.12%). Those positions could generate larger valuation gains and losses if SpaceX lists. Kiwoom Securities posted 372.0 billion won in valuation gains and losses last year, recording sizable profits from Woori Financial Group (341.5 billion won) as well as PEFs such as “Vision Private Equity Partnership” (2.6 billion won) and “Helios No. 8 Private Equity Partnership” (2.5 billion won). NH Investment & Securities, which posted 192.7 billion won in valuation gains and losses last year, cited key investments including the “Intervest Deep Tech Investment Partnership” (12.0 billion won)—a fund that invests in deep tech, biotech, AI and ICT companies—and convertible preferred shares of Alteogen, a KOSDAQ-listed firm (9.9 billion won). Elsewhere, Samsung Securities recorded sizable valuation gains and losses from Rznomics (23.5 billion won), KB Securities from KB Balhae Infrastructure (7.3 billion won), and Daishin Securities from Samsung C&T (122.5 billion won). Key companies in brokerages’ proprietary investment (PI), by securities firm / By Yoon Seung-jun Brokerages’ valuation gains and losses from proprietary investment (PI) are expected to grow further this year, as equity markets—where securities firms allocate much of their PI capital—continue to hit fresh highs amid an AI-driven semiconductor boom. Market capitalization among listed companies in Korea has been on the rise. As of the 8th, the combined market value of 72 listed companies in which the top 10 securities firms held stakes (based on year-end holdings; excluding affiliates and companies in which they participate in management) stood at 3.2898 trillion won, up 12.9% from the 2.9133 trillion won book value recorded at the end of last year. The market value of Samsung C&T held by Daishin Securities reached 522.3 billion won (based on market capitalization), up 76.5% from its year-end book value of 318.6 billion won. Over the same period and under the same criteria, LG Corp. (74.2 billion won) rose 35.0%, Shinhan Financial Group (11.8 billion won) gained 27.6%, and S2W (1.3 billion won) surged 108.4%. Daishin Securities began investing in Samsung C&T in 2022, and its cumulative investment return over roughly four years has reached 282.2% (306.2 billion won). Since the start of the year, Korea Investment & Securities has posted investment returns of 73.9% on TiumBio (1.6 billion won), 49.6% on Mujin Medi (0.6 billion won), 23.4% on Kolon Life Science (1.9 billion won), and 17.3% on Woori Financial Group (888.3 billion won). Elsewhere, Mirae Asset Securities recorded a 33.6% return on CMTX (2.2 billion won); NH Investment & Securities, 54.8% on Kiwoom Securities (29.9 billion won); Samsung Securities, 17.3% on Koramco The One REIT (20.4 billion won); KB Securities, 23.7% on Chunbo (54.5 billion won); and Hana Securities, 43.4% on Innospace (0.6 billion won). While PI investments at brokerages are likely to increase, some observers say the pace of expansion will be limited. Lee Seok-hoon, a senior research fellow at the Korea Capital Market Institute, said demand remains strong for funding and capital-raising by innovative companies and that government policies—aimed at promoting “productive finance” and venture-capital investment—include risk-weight calculation measures and various support programs, creating a favorable investment environment. “However, investing in innovative companies involves information asymmetry, and unless that is addressed, it could become a burden from a risk-management perspective,” he said. sjyoon@chosunbiz.com ]]> https://it.chosun.com/news/articleView.html?idxno=2023092162245 https://it.chosun.com/news/articleView.html?idxno=2023092162245 Sat, 16 May 2026 07:00:00 +0900 viayou@chosunbiz.com (유은정 기자) The closing price is displayed at the dealing room of Hana Bank’s headquarters in Jung District, Seoul, on the afternoon of the 15th, after the KOSPI briefly surpassed the 8,000-point mark for the first time during intraday trading before closing in the 7,490 range. /News1 According to the Korea Exchange, the KOSPI closed at 7,493.18, down 448.23 points, or 6.12%, from the previous session. The index climbed as high as 8,046.78 in early trading but reversed course and fell steeply amid heavy selling by foreign and institutional investors. Foreign investors alone offloaded a net 5.2089 trillion won on the day. Foreign investors have remained net sellers for seven straight trading days since the 7th. They sold 6.5240 trillion won on the 7th, 4.8920 trillion won on the 8th, 2.6987 trillion won on the 11th, 5.0873 trillion won on the 12th, 4.3242 trillion won on the 13th and 2.2798 trillion won on the 14th. Their cumulative net selling over the period reached 31.0142 trillion won. Bloomberg reported that foreign selling of Korean stocks has accelerated this month, raising the possibility that April could mark the third-largest monthly net outflow on record, following February’s $13.5 billion and March’s $29.8 billion. Foreign investors’ net selling from the 4th to the 15th totaled 24.4815 trillion won. Market watchers attributed the recent selloff to weakness in the semiconductor sector after the first-quarter earnings season and concerns over political debate surrounding a proposed “AI national dividend,” both of which appear to have dampened foreign investor sentiment and triggered profit-taking. The selling was especially concentrated in Korea’s leading chip stocks. So far this month, foreign investors have sold a net 12.3476 trillion won worth of SK hynix shares and 9.3637 trillion won worth of Samsung Electronics shares. Retail investors absorbed most of that selling. SK hynix and Samsung Electronics were also the top two stocks bought by individual investors, with net purchases of 12.0149 trillion won and 7.6896 trillion won, respectively. “Short-selling balances have recently increased, while retail investors have expanded their net buying and foreign investors have continued to sell, leading to relative weakness in semiconductor shares,” said Lee Kyung-soo, a researcher. “The controversy over the AI national dividend has added to policy uncertainty surrounding Korea’s semiconductor industry, raising concerns about a so-called ‘Korean semiconductor discount.’” Jung Na-yeon, an analyst at Woori Investment & Securities, said the recent selloff appeared to reflect a wave of profit-taking as negotiations between the United States and Iran dragged on, following strong foreign inflows through the end of last month. “Foreign net selling was concentrated in semiconductor stocks because the recent market rally had also been concentrated in that sector,” she said. Brokerages said market volatility could remain elevated for the time being due to domestic and overseas variables, but added that foreign investors’ overall view of the Korean stock market has not necessarily turned negative. Analysts said the KOSPI could continue to trend upward over the longer term, supported by upward revisions to earnings estimates driven by AI-related investment. “While foreign selling has been concentrated in semiconductor shares, net buying has appeared in other sectors, suggesting a sector rotation is underway,” Jung said. “If uncertainties surrounding the U.S.-Iran negotiations and Samsung Electronics’ labor talks ease, foreign buying is likely to return.” Kim Dong-won, head of research at KB Securities, said concerns over a possible “bubble collapse” following the market’s rapid rise would require clear signals such as a breakdown in the economic cycle or a sharp rise in interest rates. “The likelihood of such signals emerging in the short term, over the next three to six months, is not high,” he said. viayou@chosunbiz.com ]]> https://it.chosun.com/news/articleView.html?idxno=2023092162153 https://it.chosun.com/news/articleView.html?idxno=2023092162153 Fri, 15 May 2026 12:00:00 +0900 jubar@chosunbiz.com (Byun In-ho) Upstage finalized its acquisition of AXZ, the operator of portal site Daum, on May 7. / Upstage According to industry sources, Upstage signed a contract with Kakao on May 7 to acquire AXZ, the operator of portal site Daum. In January, Upstage and Kakao, AXZ’s parent company, signed a memorandum of understanding (MOU) under a share swap structure. Under the agreement, Kakao would transfer its entire stake in AXZ to Upstage, while Kakao would acquire part of Upstage’s shares. The two companies signed the definitive agreement after roughly four months of due diligence. The question is how Daum will be used. A portal generates revenue through a structure in which users visit the site, search, stay on the platform and view advertisements. Search market share is not merely a ranking. It is the advertising foundation of a portal site, leading to visitor numbers, time spent, ad impressions, clicks and purchase conversions. InternetTrend’s tally of domestic search market share from April last year to April this year showed Naver in first place with 62.35%, followed by Google with 30.3%. Daum recorded 2.96%, lower than Microsoft Bing’s 3.32%. Globally, Google’s search market share stands at 90.04%, according to StatCounter. Daum is expected to face an uphill battle not only globally, but also in Korea. It is also difficult to assume that adding AI to portal search will increase Daum’s user base. Users tend not to change the services they already use because of the lock-in effect of search portals and web browsers. Google has operated AI Mode since last year, while Naver has offered its AI Tab to Naver Plus Membership users since April. Both AI Mode and AI Tab are conversational search services. But search market shares have shown little change. There is also precedent showing that even useful AI services can struggle to win user adoption. Perplexity, regarded as a generative AI service specialized in search, ranks second in the global AI chatbot market with a 9.72% share. However, its AI web browser “Comet,” launched in July last year, has yet to produce notable results. Perplexity CEO Aravind Srinivas told Reuters that getting users to switch their default browser from Chrome to Comet is not easy. TechCrunch assessed that persuading users to change browsers may be harder than getting them to search somewhere other than Google. This is why Upstage appears unlikely to generate meaningful revenue from Daum itself. Instead, Upstage can obtain Daum’s data. Daum, Korea’s first portal site, has accumulated data over a long period across search, news, cafes and blogs. Upstage can use this data to train its LLM Solar. This is the basis for the view that Upstage acquired Daum not to grow Daum, but to secure material for growing Solar. Upstage says it plans to upgrade Daum into an AI portal. An Upstage official said, “We will combine our in-house LLM Solar with Daum’s search engine and content data to advance Daum into a next-generation AI portal,” adding, “We will differentiate the service through ‘Context AI,’ which understands users’ intent and context and provides answers.” jubar@chosunbiz.com ]]> https://it.chosun.com/news/articleView.html?idxno=2023092162159 https://it.chosun.com/news/articleView.html?idxno=2023092162159 Fri, 15 May 2026 10:25:02 +0900 simalo@chosunbiz.com (Kim Dong-myeong) Cho-A Pharm. / Cho-A Pharm According to industry sources, Cho-A Pharm posted consolidated revenue of KRW 59.3 billion last year, down 5.4% from KRW 62.7 billion a year earlier. Over the past five years, the company’s sales stood at KRW 57.6 billion in 2021, KRW 68.9 billion in 2022, KRW 63.0 billion in 2023, KRW 62.7 billion in 2024, and KRW 59.3 billion last year. After reaching its peak in 2022, revenue has declined for three straight years. Profitability also remains in negative territory. The company recorded an operating loss of KRW 6.6 billion last year, an improvement from KRW 9.7 billion the previous year. However, Cho-A Pharm has remained in the red for five consecutive years, with operating losses of KRW 7.0 billion in 2021, KRW 500 million in 2022, KRW 6.8 billion in 2023, KRW 9.7 billion in 2024, and KRW 6.6 billion last year. Although the company succeeded in reducing losses through cost-cutting measures, weakening sales have prevented it from returning to profitability. Cho-A Pharm is a mid-sized pharmaceutical company with businesses spanning OTC medicines, health supplements, the Medipharm pharmacy franchise network, and overseas exports. According to its business report, the company has focused on pharmacy sales since its founding, producing and supplying over 200 pharmaceutical and health supplement products, including Joba Viton, Hepatos, Galeo, Fematin, and Zalkton. It currently operates 15 sales offices across Korea with more than 100 medical representatives (MRs), while exporting over 150 products to 23 countries. The core issue lies in declining domestic product sales. Domestic product sales fell to KRW 40.3 billion last year, down 2.7% from KRW 41.4 billion a year earlier. Domestic sales have steadily declined from KRW 46.6 billion in 2022 to KRW 42.9 billion in 2023, KRW 41.4 billion in 2024, and KRW 40.3 billion last year. Given that pharmacy-centered product sales form the backbone of the company’s revenue, this decline has directly impacted overall sales performance. Exports have also failed to serve as a buffer. Product export sales came in at KRW 5.8 billion last year, down 14.5% from KRW 6.8 billion the previous year. Over the past five years, export sales fluctuated between KRW 4.5 billion in 2021, KRW 6.7 billion in 2022, KRW 4.1 billion in 2023, KRW 6.8 billion in 2024, and KRW 5.8 billion last year. While the company has maintained a certain level of overseas sales, export growth has not been strong enough to offset the decline in domestic sales. Performance of major products has also been underwhelming. One of Cho-A Pharm’s 대표 products, the children’s nutritional drink Zalkton, generated KRW 3.82 billion in sales last year, accounting for 6.6% of total revenue—down from KRW 4.26 billion the previous year. Fematin, a hematinic supplement, generated KRW 3.59 billion, representing 6.3% of total sales, while Hepatos, a liver disease treatment, generated KRW 2.07 billion, accounting for 3.6%. The scale of these flagship products remains limited, and declining sales of some core products have further weakened the company’s growth momentum. To reverse this trend, Cho-A Pharm has been broadening its business portfolio. In 2024, the company amended its articles of incorporation to add veterinary pharmaceuticals, pet food, and companion animal-related businesses to its business objectives. Its business report now states that, in addition to pharmaceuticals, quasi-drugs, health supplements, general food products, and hygiene products, the company also engages in the manufacturing and sale of veterinary medicines, single-ingredient feed, compound feed, and other animal feed products. Following this move, Cho-A Pharm officially entered the pet healthcare market by launching “Zalkgae,” a companion animal pharmaceutical and supplement brand. Given the rapid growth of the pet market, the strategic direction itself appears logical. The company also expects to leverage its existing pharmacy distribution network alongside veterinary pharmacy channels. In 2024, Cho-A Pharm additionally opened an official store on Naver Smart Store to strengthen its online presence. The challenge, however, is that these new businesses have yet to translate into meaningful financial results. Although Cho-A Pharm aims to expand revenue through veterinary pharmaceuticals alongside its existing human healthcare products, it is still too early to say the new business is making up for declining legacy sales. In its business report, the wholesale and retail pet supplies business is classified as “not yet in operation,” indicating that its pet business remains in its early stages. The company’s capacity for research and development also remains limited. Cho-A Pharm spent KRW 1.4 billion on R&D last year, down 22.2% from KRW 1.8 billion the previous year. R&D spending as a percentage of revenue fell to 2.29%, compared with 2.85% in 2024 and 3.81% in 2023. At a time when new products and business initiatives are critical for recovery, declining R&D investment could weigh on the company’s ability to secure long-term growth drivers. A reduction in selling and administrative expenses appears to have contributed to narrowing operating losses. Selling and administrative expenses fell 7.7% to KRW 28.4 billion last year, from KRW 30.8 billion the previous year. While cost adjustments in its pharmacy-centered sales structure helped reduce short-term losses, they have not yet translated into a recovery in revenue. Industry experts note that for Cho-A Pharm’s veterinary pharmaceutical business and online sales expansion to drive a genuine turnaround, the company will need more than simply expanding its business objectives or launching new brands. It will need a differentiated product portfolio and an integrated sales strategy spanning pharmacies, veterinary pharmacies, and online channels. “One of the key challenges for Cho-A Pharm is not simply reducing costs, but proving that it can restore declining domestic product sales through new products and channel strategies,” an industry official said. “Its entry into the veterinary pharmaceutical market is still at the potential stage. Whether Zalkgae becomes a new growth pillar or merely serves as a temporary support measure to slow existing sales declines will likely become clear in the company’s results from this year onward.” simalo@chosunbiz.com ]]> https://it.chosun.com/news/articleView.html?idxno=2023092162000 https://it.chosun.com/news/articleView.html?idxno=2023092162000 Wed, 13 May 2026 12:00:00 +0900 swchun@chosunbiz.com (Cheon Sun-woo) Many visitors attended the AGF 2025 event venue. / Reporter Chun Seon-woo Shift Up & Neowiz Saved by 'Subculture' According to the industry on the 13th, Shift Up recorded KRW 47.3 billion in Q1 sales this year, up 12% year-over-year. Growth continued despite no new title releases. While console title 'Stellar Blade' sales entered a declining phase, mobile game 'Goddess of Victory: Nikke (Nikke)' offset the decline. Stellar Blade sales steadily decreased from KRW 65.7 billion in Q2 2025 to KRW 27.6 billion in Q3, KRW 17.1 billion in Q4, and KRW 12.9 billion in Q1 2026. Meanwhile, Nikke maintained stable sales in the KRW 32-45 billion range during the same period. Lim Hee-seok, researcher at Mirae Asset Securities, analyzed: "With the recent 3.5th anniversary update, Nikke Global ranked No. 1 in sales in major markets including Korea and Japan, and the outlook remains bright." Neowiz also benefited from subculture games. Neowiz's Q1 sales reached KRW 101.4 billion, up 14% year-over-year, thanks to the performance of mobile collectible subculture RPG 'Brown Dust 2's 2.5th anniversary update. Lee Jun-ho, researcher at Hana Securities, evaluated: "Brown Dust 2 continues to grow based on its fandom and has become an IP accounting for 25% of Neowiz's annual sales. There's potential for further growth with the 3rd anniversary update scheduled for Q3." Blue Archive Tops Japanese Sales 13 Times... Reverse Rally Miracle Created by Fandom Industry experts analyze that fandom-based subculture games have a different revenue structure from general games. Unlike general genres that peak immediately after launch and gradually decline, subculture games repeat an 'upward rebound' pattern where sales surge periodically according to update cycles. This is because highly loyal users sensitively respond to anniversary events, new character releases, and famous IP collaborations, rallying again. A representative case is Nexon Games' 'Blue Archive.' The game has demonstrated resilience by reversing market rankings with each major update in the Japanese market. Particularly, through the 5th anniversary update in January this year, it reclaimed the No. 1 spot on the Japanese App Store sales chart. Blue Archive has reclaimed the No. 1 position a total of 13 times since the start of its Japanese service. Game companies find the driving force behind such long-term success in 'fandom management.' This is a strategy that expands emotional touchpoints with users beyond simply staying within game content. Neowiz rallied domestic and international fandoms by participating in subculture festivals like Japan's Comiket and Taipei Game Show. Shift Up's 'Nikke' is also focusing on offline marketing, including hosting an OST concert this year, exhibitions, and Comic World booth participation. Major domestic game companies have selected subculture as their next-generation growth engine and are rushing to enter the market. With companies that had been distant from subculture securing lineups—including NC (Limit Zero Breakers), Smilegate (Mirae City: Invisible Future), Lionheart (Project C), and Webzen (Tervis)—market competition is expected to intensify further. An industry insider said: "Recently successful subculture games don't simply feature pretty characters but organically design worldviews, stories, and character narratives to create fandoms. Strategies to maintain long-term fandoms will be important, not just initial launch performance." swchun@chosunbiz.com ]]> https://it.chosun.com/news/articleView.html?idxno=2023092161832 https://it.chosun.com/news/articleView.html?idxno=2023092161832 Mon, 11 May 2026 12:00:00 +0900 swchun@chosunbiz.com (Cheon Sun-woo) Subnautica 2. / Krafton According to the industry on the 7th, Krafton's overseas subsidiary Unknown Worlds will release 'Subnautica 2' in Early Access on May 15 on global platforms including Steam and Xbox Game Pass. Subnautica 2 is the third title in the Subnautica series and is considered the official numbered sequel. It also marks the first release in 12 years since the previous game. The oceanic survival experience, which was the strength of the previous title, has been elevated to the next level, and for the first time in the series, 4-player cooperative play has been introduced. Graphics quality has also been enhanced through the application of Unreal Engine 5. Lee Jin-hyung, head of Krafton's publishing division, said, "The oceanic survival experience of the Subnautica series has been expanded further in the new game through cooperative mode and a new alien planet," adding, "We expect it to approach users who have loved the series in a fresh way." Expectations are equally high. Gamers expressed increased interest after the trailer was released, commenting on "a deeper and more spectacular alien ocean." Underwater base construction and various interactions with marine life are also receiving positive reviews. Unknown Worlds plans to improve the game's completeness through an Early Access period of approximately two years before the official release. The market evaluates Subnautica 2 as a key title that will mitigate Krafton's 'single IP risk' and a game with box office potential. It confirmed a high level of waiting demand by maintaining the number one spot on Steam's wishlist for 34 consecutive weeks. Securities firms estimated that Subnautica 2 will achieve sales of over 5 million copies within the second quarter alone. Based on the package price (33,700 won), a simple calculation suggests new revenue expectations of over 160 billion won. The problem is legal risk. A U.S. court ruled that the dismissal of executives at Unknown Worlds, the developer of Subnautica, was unjust. Krafton lost in the first trial. According to the court's decision, Unknown Worlds CEO Ted Gill was reinstated, and service authority was transferred to Unknown Worlds, not Krafton. This means Krafton's room to intervene in operations or development roadmaps is limited. Conflicts between the two parties over damages and performance bonuses have also not been completely resolved. This issue is cited as a variable that could affect future development roadmaps and organizational stability. Additionally, questions are being raised about Krafton's operational capabilities. Currently, over 95% of Krafton's revenue comes from the PUBG series. This makes the success of new titles all the more critical. Previously, Krafton achieved sales of over 1 million copies in the initial release period for Early Access titles such as 'Mimesis' and 'inZOI', but later showed limitations as sales and user numbers declined. An industry insider said, "Subnautica 2's initial box office indicators look solid, but how internal conflicts are resolved could affect its success," adding, "During the Early Access period, success potential may vary depending on the ability to communicate with users." swchun@chosunbiz.com ]]>