[Edaily Reporter Ahn Yu-ri] #Kakao Games, which is welcoming “LINE Yahoo” as its new owner, is gearing up for a rebound by transitioning to a co-CEO system and launching new titles in the second half of the year. The company’s strategy is to bet on improving its performance by consecutively releasing four major new titles in the second half of this year.

Kakao Games will propose the appointment of Kim Tae-hwan, Vice President of LINE Games, and Lee Si-woo, Chief Business Officer (CBO) of Kakao Games, as new internal directors at an extraordinary general meeting of shareholders on the 22nd. The industry views this as a prelude to a transition to a co-CEO system.

The management stake transaction with Line Yahoo, which began last March, has also entered its final stages. Once the transaction is completed, LAAA Investment—a special purpose company (SPC) funded by LY Corporation (Line Yahoo)—will become the largest shareholder of Kakao Games, while Kakao will become the second-largest shareholder.

Along with the management reshuffle, Kakao Games is also accelerating the release of new titles in the second half of this year.

The title expected to launch first is the new MMORPG (massively multiplayer online role-playing game) *The World of Dokkaebi*, currently under development by Supercat. Based on the popular web novel *The Demon Slayer’s Challenge*, the game is targeting a third-quarter release this year, with pre-registration set to begin in July.

Kakao Games announced that it will reveal key game content and service details during an online showcase in August, and plans to gradually release various updates leading up to the launch.

A new title based on its core IP (intellectual property), “Odin,” titled “Odin Q: Call of the Valkyries,” is also set for release in the third quarter. Kakao Games has entered the final countdown to launch, having opened the teaser site for Odin Q today and revealing its subtitle and key visual for the first time.

Development is also well underway for the PC and console action RPG “ArcheAge Chronicles” and the open-world zombie survival game “God Save Birmingham,” both of which are targeting a fourth-quarter release this year.

The success of these new titles in the second half of the year is seen as a key factor in determining whether Kakao Games can turn its financial performance around. Kakao Games recorded an operating loss of 25.5 billion won in the first quarter of this year, marking its sixth consecutive quarter in the red, due to declining revenue from its existing flagship games and a lack of new releases. Market expectations have also fallen significantly, with the company’s stock price dropping by more than 50% over the past year.

Attention is also focused on the potential for synergy between Kakao Games and Line Games, spurred by their collaboration with Line Yahoo, which is set to become the largest shareholder. Analysts suggest that collaboration across various areas—including publishing, investment, and development—could help strengthen their competitiveness.

The fact that a significant number of key executives at both companies are former Nexon employees is also drawing attention. Kim Tae-hwan, Vice President of Line Games, previously served as Vice President of Nexon Korea and Chief Business Development Officer (CBDO) of Nexon Japan, while Cho Dong-hyun, Co-CEO of Line Games, previously served as Head of Development and Head of the New Business Division at Nexon Korea. Co-CEO Bae Young-jin also comes from Nexon’s Investment Division.

While some speculate about the possibility of a future merger with Line Games, both companies have stated that they are not currently considering such a move. However, the market is closely watching to see how far the scope of cooperation between the two companies will expand following the change in majority ownership.