Kakao Games secures $111m through subsidiary sale and paid-in capital increase

• The company will sell its entire stake in screen golf unit Kakao VX to IVG for ₩210bn ($153m).
• The sale follows Kakao’s buyout of a 34.8% stake from a financial investor to settle a shareholder deal.
• Kakao Games will issue 6.92m new shares at ₩15,680 each to raise ₩108.5bn.
• The company’s latest moves signal a renewed focus on growth and financial stability.

Kakao Games has raised approximately ₩156 billion ($111 million) by selling its subsidiary Kakao VX and completing a paid-in capital increase.

As reported by ChosunBiz, Kakao Games will sell its entire stake in screen golf subsidiary Kakao VX to IVG, a Kakao Investment subsidiary, for ₩210bn ($153m) on October 15th. 

The sale follows Kakao Games’ prior buyout of a 34.8% stake from a financial investor for ₩162.3bn ($118m) to settle a shareholders’ agreement.

Continuous growth 

Kakao Games then announced plans to raise ₩108.5bn through a third-party paid-in capital increase, issuing 6.92m new shares at ₩15,680 each.

The company said it secured ₩156.2bn through the sale and capital increase, which will be used to strengthen its finances and fund growth, particularly in expanding its PC online and console businesses, including AAA titles.

Late last year, Kakao signed a global publishing deal with Lionheart Studio for Project Q, a new triple-A MMORPG inspired by Norse mythology. The Unreal Engine 5-powered title is scheduled to launch on mobile and PC this year with cross-play support.  

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