According to the gaming industry on the 1st, Chairman Park announced in a regulatory filing that he would sell his entire 39.33% stake in Wemade Co., Ltd. to the Chinese investment firm NeoPulse. The transaction is scheduled to be completed on October 30, and NeoPulse will secure a 40.25% stake, becoming Wemade Co., Ltd.’s largest shareholder.
The industry views this transaction as the result of Chairman Park Kwan-ho’s exit aligning with the strategic investment needs of Chinese capital. In particular, analysts suggest that the Chinese side made a strategic decision to secure the business rights to the “Mir” intellectual property (IP)—which is generating high profits in the Chinese market—and a stable licensing revenue structure.
Wemade Co., Ltd. has experienced significant earnings volatility in recent years. Compounded by a slowdown in the domestic game market and poor performance of its blockchain platform “WEMIX,” the company posted an operating loss of 112.6 billion won in 2023. However, it has shown signs of recovery, successfully returning to profitability with an operating profit of 7.1 billion won in 2024 and 10.7 billion won in 2025.
However, regardless of the ups and downs of its blockchain business, the “Mir” IP has continued to serve as Wemade Co., Ltd.’s core revenue source. Its flagship title, “The Legend of Mir 2,” is considered one of the most successful Korean games in China, and numerous licensed games, including “The Legend of Mir 3,” are still in service today. The industry estimates that the majority of Wemade Co., Ltd.’s licensing revenue comes from the “Mir” IP.
Alibaba Has Had Its Eye on Korean Game Companies Since the 2010s
NeoPulse, the acquiring entity, is known as an investment platform with close ties to Alibaba and major Chinese game companies. NeoPulse is a special purpose company (SPC) established in South Korea last October, with Hong Kong-based Shengsong Investment Co., Limited holding 100% of its shares. Shengsong Investment Co., Limited is an unlisted corporation established in Hong Kong in December 2023.
This is not the first time Alibaba has shown interest in the South Korean gaming industry. In the early 2010s, Alibaba’s South Korean branch sought investment opportunities in the domestic mobile gaming sector, but this did not result in any major acquisitions. Unlike that previous attempt, this transaction is significant because Alibaba has become the largest shareholder of a leading South Korean game company and secured management control.
The industry assesses that this transaction differs in nature from the investment approaches of existing Chinese capital. Until now, Tencent has typically participated as the second-largest shareholder in Korean game companies, focusing on strategic investments to secure global and Chinese publishing rights. Its approach involved strengthening content and business cooperation without directly interfering in management.
In contrast, the acquisition of Wemade Co., Ltd. is considered virtually the first instance in the domestic gaming industry where a company has taken over management control by securing the position of largest shareholder.
Currently, ImageFrame Investment, a Tencent affiliate, holds a 14.40% stake in KRAFTON, with a gap of 1.15 percentage points between its stake and that of Chairman Jang Byung-kyu, the largest shareholder. At Netmarble Corporation, Chairman Bang Jun-hyuk holds 25.29%, while Han River Investment, a Tencent affiliate, holds 18.38%. At SHIFT UP, CEO Kim Hyung-tae holds 38.43%, followed by Aceville PTE. LTD., a Tencent affiliate, which holds a 34.48% stake.
Chinese capital is also represented on the boards of some game companies. At Netmarble Corporation, Tencent’s Head of Business Development, Li Na-chuan, serves as a non-executive director, while at SHIFT UP, Tencent Holdings CEO Ming Liu serves as a non-executive director. However, this participation is limited to board representation resulting from minority equity investments; it is widely regarded that this is the first instance—with Wemade Co., Ltd.—where a Tencent-affiliated entity has actually taken over management control from the founder.
Expectations for Increased Game License Issuance and Expanded Collaboration in the Chinese Market
Wemade Co., Ltd. expects this transaction to accelerate its expansion into the Chinese market. This is because it will enable the company to secure allies in China—its largest market—for obtaining game service licenses (panho), establishing local publishing partnerships, and expanding its business.
The company has already been expanding its business foundation in China. Following the establishment of software development and sales subsidiaries in Hainan, Shanghai, and Shaoxing last year, it further expanded its local business footprint by establishing a Beijing subsidiary in the first half of this year.
Industry observers believe this acquisition will have a positive impact on the issuance of game service licenses, which has been the biggest obstacle to entering the Chinese market. An industry insider said, “There are expectations that the game service license issuance process, which previously required indefinite waiting, could become significantly faster.”
In fact, Wemade Co., Ltd.’s MMORPG “Night Crow” obtained a Chinese foreign investment game license on the 29th of last month. According to industry sources, the game received approval approximately one year after applying for the license in the second half of 2025.
In an email to employees, Chairman Park Kwan-ho explained that this sale was a strategic move to expand into global markets. He stated, “Expansion into larger markets is no longer a choice but a condition for survival,” adding, “The gaming industry is no longer confined to a single country. The era of planning the company’s future based solely on the Korean market is over.”
Chairman Park’s future plans have not yet been disclosed. However, industry observers are leaning toward the possibility that, following this transaction, Chairman Park will step down from day-to-day management, and the company will transition to a system led by professional managers appointed by the Chinese side.
A gaming industry insider commented, “Chairman Park was never the type to take a front-line role in management,” adding, “Since his assumption of the CEO position following the departure of former CEO Jang Hyun-guk was largely temporary in nature, it is highly likely that the company will be restructured under a professional management system in the future.”
