[Edaily Reporter An Yu-ri ] Chinese gaming company Kingnet, which has been embroiled in a long-running legal dispute with Wemade Co., Ltd.(112040)over royalties for the “Legend of Mir 2” IP (intellectual property), is investing approximately 400 billion won to acquire Wemade Co., Ltd. The investment will be made by acquiring a 49% stake in the parent company of Neopulse, which is acquiring the entire stake held by Wemade Co., Ltd. Chairman Park Kwan-ho. Kingnet stated that through this investment, it aims to strengthen the business foundation of the “Mir” IP and secure an exclusive license.

According to industry sources on the 13th, Kingnet announced the previous day that it had acquired a 49% stake in the Hong Kong investment firm Neosphere through its Hong Kong subsidiary, Cypress HK, and would participate in a capital increase. The investment amounts to $298 million, equivalent to approximately 400 billion won.

Neosphere is a company that indirectly holds a 100% stake in Neopulse through Hong Kong Seongsong Investment. Neosphere owns Hong Kong Seongsong Investment as a wholly-owned subsidiary, and Hong Kong Seongsong Investment holds a 100% stake in Neopulse.

On June 30, NeoPulse signed an agreement to acquire the 39.33% stake in Wemade Co., Ltd. held by Chairman Park for approximately 920 billion won. Upon completion of the transaction, NeoPulse will secure a 40.25% stake in Wemade Co., Ltd., adding to its existing 0.92% holding.

Once payment is completed, NeoPulse will secure a 40.25% stake in Wemade Co., Ltd.—including its existing 0.92% holding—and become the largest shareholder. According to a previous Wemade Co., Ltd. disclosure, a down payment of 92 billion won has already been made, and the remaining balance of 828 billion won is due on October 30.

Kingnet will not invest directly in NeoPulse but will instead invest in its parent investment company, NeoSphere. Following the transaction, existing shareholder Nexpulse will hold a 51% stake in NeoSphere, while Kingnet’s affiliate, Cypress HK, will hold 49%.

Kingnet stated in its disclosure that this investment does not grant it control over Wemade Co., Ltd. or the ability to lead management decisions. As of the time of the disclosure, Chairman Park’s share purchase had not yet been finalized. Kingnet’s investment also remains subject to procedures such as approval and filing with the relevant authorities.

The primary objective of this transaction is to strengthen the foundation of the Mir IP business. In its disclosure, Kingnet emphasized, “Over the past 20 years, the Mir IP has established a stable user base, brand influence, and a mature business ecosystem.”

Kingnet explained, “The company has long been involved in commercialization partnerships for the ‘Mir’ IP in China, and these related businesses are highly aligned with the company’s core operations,” adding, “This transaction provides an opportunity to further deepen cooperation between the two parties and establish a long-term strategic alliance through equity participation.”

They further stated, “Once this transaction is completed, it will help both parties establish a more stable, long-term cooperative framework, and cooperation in areas such as the commercialization of the ‘Mir’ IP, the launch of new game titles, and operations in the Chinese market will be further deepened.”

This disclosure also includes a provision regarding the pursuit of an exclusive licensing agreement. Nexpuls has agreed to make every effort to ensure that, following the completion of the acquisition of Wemade Co., Ltd.’s shares, Wemade Co., Ltd. enters into an exclusive licensing agreement for the “Mir” IP with Neosphere.

The agreement stipulates that the license fee shall not exceed the fee standards set in the “Mir” IP license agreements previously concluded by Wemade Co., Ltd. or its affiliates with existing partners. Under this structure, Neosphere will subsequently grant usage rights to Cypress HK or an entity designated by that company.

However, this is merely a commitment to pursue the conclusion of an exclusive license agreement; it is not a contract that transfers ownership of the “Mir” IP or definitively grants exclusive usage rights. Specific details regarding the geographic scope, duration, and target games covered by the exclusive rights were not provided in this disclosure.

Kingnet is a company that has long been in dispute with Wemade Co., Ltd. over Mir IP royalty issues. International arbitration and litigation ensued over the non-payment of royalties for “The Legend of Namwon,” a game based on “The Legend of Mir 2” that was operated in China by Kingnet’s subsidiary, Zhejiang Huanyou.

The two parties reached a mutual agreement in February 2026 and signed a settlement agreement; Wemade Co., Ltd. received approximately 43 billion won in settlement funds from Kingnet this past February. Both parties have stated that they agreed to mutually withdraw the related arbitration and litigation proceedings that had been underway in South Korea, China, and Singapore.

Meanwhile, an individual investor named “Mok, Pui Ming” was listed at the top of the ownership structure alongside Kingnet. His specific business background was not disclosed in this filing. He is a Hong Kong national who holds a 100% stake in NexPulse.

Kingnet highlighted his academic background—a degree from the City University of Hong Kong—and his involvement in professional associations, and stated that he has no special relationship with Kingnet, its actual controlling shareholder, or any shareholder holding 5% or more of its shares. NexPulse plans to contribute $310.2 million (approximately 480.6 billion won based on the exchange rate used in the disclosure) to this Neosphere capital increase.

A Wemade Co., Ltd. official stated, “Wemade Co., Ltd. and Neopulse both plan to announce their positions regarding Kingnet’s disclosure by the morning of the 14th,” adding, “We will provide further details at a later date.”