Netmarble Corp., a leading South Korean gaming company, expects to gain new growth momentum from the launch of nine new titles and the anticipated full return of K-pop sensation BTS this year following their military service.
Buoyed by the upbeat outlook, the second largest shareholder of HYBE Co., the company behind the boy band, is renewing efforts to list its wholly-owned game studio Netmarble Neo Inc. on the Kospi main bourse after shelving the plan in 2021 due to sluggish earnings.
“This year will be a turning point for Netmarble to make a new leap forward,” said Kim Kim Byung-kyu, CEO of the game publisher, at an annual general meeting (AGM) on Monday.
In 2025, it is set to release nine new titles, including mobile game “Game of Thrones: KingsRoad” and console game “The Seven Deadly Sins: Origin.” They are expected to further solidify its global position, he added.
Netmarble has shifted to a single-CEO structure following the resignation of former co-CEO Kwon Young-sik last week.
Kwon, head of Neomarble Neo, will focus on the game studio, well-known for popular games such as “Solo Leveling: ARISE,” “Lineage 2: Revolution” and “Ni no Kuni: Cross Worlds.”
He will also continue to be involved in Netmarble’s strategic decisions as a member of its newly launched management strategy committee.
NETMARBLE NEO’S IPO
Kim, CEO of Netmarble, struck a note of caution about optimism surrounding the unit’s IPO.
Netmarble Neo needs to strengthen its competitiveness to ensure long-term survival and clearly demonstrate its contribution to its parent firm before moving forward with its IPO, he noted at the AGM.
Netmarble holds a 9.44% stake in HYBE as of the end of 2024, down from 12.08% following a block sale last year. Bang Si-hyuk, founder and chairman of the K-pop powerhouse, controls 31.57% of the company as the top shareholder.
The stake sale was conducted through a price return swap (PRS) deal, allowing for additional gains if HYBE’s share price rises about the sale price. Conversely, it requires compensation to HYBE if its share price falls below that level.
“It was designed to benefit us if BTS resumes full-group activities and boosts HYBE’s stock price,” Kim told shareholders.
Five of the seven BTS members are scheduled to complete their military service by early June, with two – Jin and J-Hope — already discharged.
In 2024, Netmarble swung to an operating profit of 215.6 billion won ($147.4 million), snapping its losing streak for the previous two years.
By Subin Park
waterbean@hankyung.com
Yeonhee Kim edited this article.
