Kakao Games, one of South Korea’s leading game publishers and a subsidiary of Kakao Corporation, has raised approximately $111 million (₩156.2 billion) through the sale of its screen-golf subsidiary Kakao VX and a paid-in capital increase.
Deal Breakdown
Kakao Games will sell its entire stake in Kakao VX to IVG, a subsidiary of Kakao Investment, for ₩210 billion (around $149 million). The transaction will close on October 15.
Before completing the sale, the company repurchased a 34.8 percent stake from a financial investor for ₩162.3 billion (approximately $115 million) to finalize an existing shareholders’ agreement.
Kakao Games also announced a third-party allocation paid-in capital increase worth ₩108.5 billion (about $77 million). The company will issue 6.9 million new shares at ₩15,680 per share to investors Velvet No. 1 LLC and 2018 QCP No. 13 Private Equity Investment Partnership.
Together, these transactions secured ₩156.2 billion (roughly $111 million) in new funding.
Strengthening Financial Stability and Growth
Kakao Games said the additional capital will be used to enhance financial stability and fund strategic growth, particularly in expanding its PC and console business. The company plans to allocate part of the funds to AAA-grade projects, reflecting its ambition to compete more directly in the global premium games market.
The sale also supports Kakao Games’ broader restructuring plan under Kakao Corporation, as the conglomerate streamlines its gaming, tech, and investment portfolios.
About Kakao Games
Founded in 2016, Kakao Games Corp. is one of South Korea’s most recognized game publishers, known for titles such as Black Desert Online, PUBG (Korea), Guardian Tales, Eversoul, and Odin: Valhalla Rising. The company operates across mobile, PC, online, and console platforms, often collaborating with local developers while publishing globally.
A subsidiary of Kakao Corporation, Kakao Games has been investing in AI-powered development tools and cross-platform publishing strategies to diversify beyond mobile. Despite a dip in profits in 2024, the company remains one of the most influential publishers in Asia, alongside Nexon, Netmarble, and Krafton.
