Netmarble, NCsoft to revitalize with new leadership

[Courtesy of Netmarble]

South Korean video game makers Netmarble Corp. and NCsoft Corp. aim for a rebound in 2024 under new leadership after struggling with underperformance.

After over a year of consecutive quarterly losses, Netmarble is aiming for a breakthrough and swift performance recovery after securing a new leader proficient in strategic planning and new releases.

According to the videogame maker on Wednesday, Netmarble appointed Kim Byung-gyu, who has been overseeing management and planning, as the new chief executive officer with independent authority. Kim’s inauguration is expected to take place after approval during the March shareholders’ meeting. Once the approval is secured, Kim will assume the role of CEO alongside fellow CEO Kwon Young-sik. Do Ki-wook, the current CEO, will step back to focus on his role as the chief financial officer.

“Kim has expertise not only in legal matters but also in managing overseas subsidiaries and strategic planning. We expect him to positively contribute to changes and growth in our company,” Netmarble said. Kim has also served as a board member at companies in which Netmarble has invested and is known for his high understanding of non-gaming ventures.

The video game maker faced operating losses for seven consecutive quarters until the third quarter of 2023 due to underperformance of new releases and declining revenue from existing games. But with a turnaround in the fourth quarter, the company anticipates a visible improvement in performance. As part of measures to drive performance, Netmarble plans to launch seven new games in the first half of 2024, including “Solo Leveling: ARISE” and “Arthdal Chronicles: Three Forces,” both of which have proven to be popular.

Earlier on Tuesday, Netmarble Chairman Bang Jun-hyuk emphasized overcoming challenges through structural improvement and selected focus areas, strengthening competitiveness in his new year message.

NCsoft is also seeking a turnaround in 2024 and brought significant changes to its leadership by introducing a joint CEO system for the first time in its 26-year history.

The company appointed Park Byung-moo as co-CEO in December 2023 alongside Kim Taek-jin.

Park, who is expected to take his new position in March 2024, is a leading mergers and acquisitions specialist who previously headed private equity firm VIG Partners. Following Park’s appointment, NCsoft has stated that it expects him to contribute to mid- to long-term company-building strategies, as well as discovering new growth drivers to propel the company into a global player. Observers note the company’s focus on strengthening core competitiveness by dividing responsibilities for game development, operations, and overall management.

NCsoft is currently undergoing organizational restructuring, streamlining non-core businesses such as entertainment, and concentrating investments in artificial intelligence research and development for future growth.

The company recently took the unprecedented step of reducing executive positions as well, signaling a significant shift. “Not renewing contracts for around 10 non-registered executives marks a significant change. While the company’s executive positions have been known for their perceived job security, this longevity could also imply stagnation,” an industry insider said.

According to local financial data tracker FnGuide, NCsoft’s operating profit for 2023 is expected to be 151.7 billion won ($115.8 million), down by 72.9 percent compared to a year before. But the company is expecting performance improvement in 2024 based on the global release of the highly anticipated “Throne and Liberty.”