Wemade shares drop on tax authorities’ $38 mn levy

[Courtesy of Wemade]

South Korean game developer Wemade Co.saw a downturn in its stock price Thursday morning following National Tax Service’s (NTS) imposition of a hefty tax amounting to around 50 billion won ($38 million).

As of 9:18 am, Wemade shares are trading at 56,200 won, down 5.23 percent compared to the previous trading day.

Stocks in Wemade affiliates Wemade Play (-5.24 percent) and Wemade Max (-4.70 percent) also saw a downward trend at the same time.

Following the market’s close the previous day, Wemade disclosed the tax imposition totaling 53.69 billion won from the NTS Jungbu Regional Office resulting from a corporate tax audit conducted from 2019 to 2022.

The amount encompasses taxes levied on Wemade and its subsidiary, Wemade Tree. The payment deadline is set for February 29, 2024, with a forfeiture-to-equity ratio of 10.05 percent.

The authorties’ decision to levy forfeiture is linked to a tax investigation regarding cryptocurrency WEMIX previously issued and used by Wemade and Wemade Tree.