The majority shareholder of Kakao Games is set to shift to an investment firm backed by LY Corporation. Kakao will remain as the second-largest shareholder.

Kakao Games announced a major shake-up of its shareholding structure on the 25th. LAAA Investment, an investment vehicle funded by LY Corporation (LINE Yahoo), is stepping in to acquire a portion of shares from Kakao and Kakao Games, while also participating in the subscription of new shares and convertible bonds announced today. Once the deal clears by May, LAAA Investment will officially become the new controlling shareholder.

Kakao, currently the top stakeholder, will transition to a secondary position but continues its collaboration with the firm. While exact equity percentages remain under wraps, the shift in control likely means Kakao Games will no longer be classified as a consolidated subsidiary of Kakao.

Kakao Games this move nets approximately 300 billion won in fresh capital. The company intends to channel these funds into accelerating its global competitiveness and long-term growth. Specifically, they are looking to leverage the new partnership to expand their footprint in key markets like Japan, combining their existing development and service expertise to make a bigger splash abroad.

Kakao plans to reinvest part of the proceeds from the sale back into the business, ensuring the partnership remains rock-solid while supporting the firm’s operational stability. Importantly, the contract includes clauses to guarantee job security and maintain existing employment terms, ensuring that the company’s internal culture and hard-earned expertise remain intact.

A spokesperson for Kakao Games remarked, "This strategic investment and restructuring serve as a pivotal turning point to elevate our global competitiveness and solidify our foundation for sustainable growth. By working closely with partners like Kakao and LY Corporation, we aim to unlock fresh opportunities on the world stage."

As of 9:03 AM on the 25th, shares of Kakao Games are trading at 16,130 won, marking a 15.3% jump from the previous day.