[Edaily Reporter An Yu-ri ] An investor consortium that includes Kingnet, a Chinese gaming company that was previously involved in an IP (intellectual property) dispute with Wemade Co., Ltd. over " Wemade Co., Ltd.(112040)" and "Legend of Mir 2," will become Wemade Co., Ltd.’s new largest shareholder. Wemade Co., Ltd. Chairman Park Kwan-ho is selling his entire stake, and Wemade Co., Ltd. will embark on expanding its global and Chinese operations in partnership with the investor consortium led by Kingnet.

Wemade Co., Ltd. and NeoPulse, a gaming-focused investment platform, issued a joint statement on the 14th regarding the change in majority shareholder. This is an official explanation following Kingnet’s disclosure on the 12th that it would indirectly participate in the acquisition of Wemade Co., Ltd. Wemade Co., Ltd. announced its policy to proceed with the procedures for the change in majority shareholder while continuing its core business initiatives and organizational operations as originally planned.

The two companies stated, “An investor consortium comprising NeoPulse, a game-focused investment platform, and Kingnet, a global game company, among others, signed a Share Purchase Agreement (SPA) with Wemade Co., Ltd. Chairman Park Kwan-ho on June 30 and is currently proceeding with all necessary procedures to close the transaction—including the payment of the balance and obtaining regulatory approval—by the 30th of next month.”

They also outlined the business direction following the completion of the transaction. The two companies explained, “Once this process is complete, the investor consortium, as Wemade Co., Ltd.’s largest shareholder (with a cumulative total of 40.25%), plans to focus on expanding various opportunities, including publishing and core IP licensing businesses, in the global and Chinese markets.”

They added, “Furthermore, based on our deep understanding and extensive experience in local markets and industries, we intend to establish a system that allows us to respond more strategically to various risks.”

Kingnet’s investment amounts to $298 million. Wemade Co., Ltd. explained that this is approximately 400 billion won.

Kingnet will acquire its stake in Wemade Co., Ltd. by investing in the parent company of NeoPulse, the special-purpose entity (SPE) acting as the acquirer. Specifically, it will acquire a 49% stake in the Hong Kong investment firm Neosphere through its Hong Kong subsidiary, Cypress HK, and participate in Neosphere’s capital increase.

Neosphere holds a 100% stake in the Hong Kong-based Shengsong Investment Company, which in turn holds a 100% stake in NeoPulse. Following the transaction, Neosphere’s shareholders will consist of existing shareholders Nexpulse and Kingnet. Under this structure, Nexpulse will hold 51%, and Cypress HK will hold 49%.

On June 30, Nexpulse signed an agreement to acquire the entire 39.33% stake in Wemade Co., Ltd. held by Chairman Park for 920 billion won. The down payment is 92 billion won, and the balance is 828 billion won. Once the transaction is completed on October 30, NeoPulse will secure a 40.25% stake in Wemade Co., Ltd.—combined with its existing 0.92% holding—and become the largest shareholder.

Kingnet’s primary objective in this transaction is to strengthen its Mir IP business foundation. In its regulatory filing, Kingnet assessed that the Mir IP, having been operated for over 20 years, has established a relatively stable user base, brand influence, and a mature business ecosystem. The company intends to build a long-term cooperative relationship with Wemade Co., Ltd. based on its extensive experience in commercializing the Mir IP in the Chinese market.

Kingnet’s disclosure also included a provision stating that it intends to pursue an exclusive licensing agreement for the Mir IP. Nexpuls agreed to do its utmost to ensure that, following the completion of the acquisition of a 39.33% stake in Wemade Co., Ltd., Wemade Co., Ltd. would enter into an exclusive licensing agreement for the Mir IP with Neosphere.

Amid a dispute over the “Mir 2” IP, Kingnet ultimately acquired the “Mir” IP

Kingnet’s participation in the acquisition drew attention due to its long history of disputes with Wemade Co., Ltd. International arbitration and litigation ensued over Kingnet’s failure to pay royalties for “The Legend of Mir 2”-based game “The Legend of Nan Yue,” which was operated in China by Kingnet’s subsidiary Zhejiang Huanyou. After securing a ruling in its favor regarding Kingnet’s liability for damages in the relevant proceedings, Wemade Co., Ltd. proceeded with enforcement procedures to collect the compensation.

The two sides signed a settlement agreement in February of this year. Wemade Co., Ltd. announced that it received approximately 43 billion won in settlement funds from Kingnet last April and that both parties agreed to mutually withdraw the arbitration and litigation proceedings related to “The Legend of Nan Yue” that were underway in South Korea, China, and Singapore.

No further details regarding the specific business background of the individual investor at the top of the acquisition structure have been confirmed. The individual holding 100% of NexPulse’s shares is “Mok, Pui Ming,” a Hong Kong national. Kingnet’s public disclosure introduced his educational background from the City University of Hong Kong and his history of association activities, 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 to Neosphere’s capital increase.

However, this statement did not include an explanation of the investor’s role or the specific decision-making structure following the transaction.

Wemade Co., Ltd. maintains that this move is significant in terms of management continuity. The two companies stated, “Wemade Co., Ltd. will focus on the stable operation and sustained growth of its business and plans to proceed diligently with the relevant procedures in close cooperation with the investor consortium,” adding, “Core business initiatives currently underway and organizational operations will continue without disruption according to existing plans.”