LY Corp acquires majority stake in Kakao Games with $198m investment
| Date | Type | Companies Involved | Size |
|---|---|---|---|
| Apr 2, 2026 | acquisition | Kakao Games | $198m |
- The investment combines stake acquisition with new shares and convertible bonds to strengthen Kakao Games’ capital base.
- Kakao Games plans to deploy the funding to accelerate international expansion beyond its domestic market.
- Japan has been identified as a priority market for collaboration between Kakao Games and LY Corporation.
LY Corporation has become the largest shareholder in Odin: Valhalla Rising developer Kakao Games following a strategic investment of approximately ₩300 billion ($198 million).
As reported by Seoul Economic Daily, the transaction will be executed through LAAA Investment, a special-purpose investment vehicle funded by LY Corporation, formerly known as LINE Yahoo.
Under the agreement, LAAA Investment will acquire a portion of Kakao’s existing stake in Kakao Games while also subscribing to newly issued shares and convertible bonds. The deal is expected to close in May.
Once completed, Kakao will step down to become the second-largest shareholder while maintaining a strategic partnership with the company.
Global expansion focus
Kakao Games said the capital injection will be used to strengthen its competitiveness in international markets and support long-term growth initiatives.
Moreover, the company also plans to expand collaboration with LY Corporation across key regions, particularly Japan, as it seeks to scale its publishing and service capabilities beyond its domestic base.
As part of the agreement, contractual provisions have also been introduced to guarantee employment stability for executives and employees and preserve existing working conditions.
“This strategic investment and ownership restructuring marks an important turning point for Kakao Games to elevate its global competitiveness and build a foundation for sustainable growth," said a Kakao Games spokesperson.
"We will expand new growth opportunities in global markets through collaboration with partners including Kakao and LY Corporation.”
Kakao Games has worked on titles across platforms, including Odin: Valhalla Rising, Chrono Odyssey, GranSaga Idle, SMiniz and others.
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