This article was published on July 1, 2025, at 3:39 p.m. on the ChosunBiz MoneyMove site.
The government is accelerating the sale of the equity in Nexon Corporation (NXC) that was paid as inheritance tax by the family of the late Kim Jung-ju, the founder of Nexon. Recently, reports emerged that Tencent Holdings, a Chinese information technology company, is reviewing the acquisition of Nexon's management rights.
According to investment banking (IB) industry sources on the 1st, the Korea Asset Management Corporation (KAMCO), a trust agency under the Ministry of Economy and Finance, has initiated the procedures for the sale of NXC's equity. It has been confirmed that IBK Securities, the sales managing company, is conducting pre-marketing, distributing sale brochures to potential buyers. The sale side plans to provide investment memorandums (IM) to prospective buyers who submit confidentiality agreements to the managing company. The preliminary bidding deadline is set for August 25.
The target for sale is all 851,968 shares (30.6%) of NXC equity held by the government. This quantity was paid to the government in May 2023 by the founder's family as inheritance tax. While the principle is to sell it as a single package, there is potential for changes such as partitioning sales in the future. NXC is the holding company of the Nexon Group, with Nexon Japan listed on the stock market and Nexon Korea as its subsidiary.
The government estimates the value of the NXC equity at approximately 4.7 trillion won. This figure includes a management rights premium of 20% added to the net worth of NXC, which is an unlisted stock. However, as the Kim family's holdings exceed half of the shares, even if all the shares offered for sale are secured, it is anticipated that securing management rights will be difficult, leading to a somewhat discounted transaction price. The government reflected an expected non-tax revenue of 3.7 trillion won in the budget, assuming the sale of the NXC equity.
Tencent is identified as a strong prospective buyer. Tencent was also mentioned as a leading candidate during the last public sale by the government. Recently, foreign media have raised the possibility of Tencent making another bid for Nexon. As Tencent is actively securing intellectual property (IP) in the global market, this outlook is not seen as unrealistic. An industry source noted, "Tencent invests in domestic game companies on a cycle of 3 to 4 years," adding, "I understand they gathered information needed for the listing by contacting domestic venture capital game experts last year."
All five of the largest domestic gaming companies by market capitalization are intertwined with Tencent. Tencent is listed as the second-largest shareholder of SHIFT UP (34.76%) and Netmarble (17.52%), and also holds equity in KRAFTON (13.86%) and Kakao Games (3.89%). Most recently, Tencent Music Entertainment acquired 9.66% of SM Entertainment from HYBE for 243 billion won, climbing to the position of second-largest shareholder.
Currently, NXC's equity is held by former Chairman Kim's wife, Yoo Jeong-hyun, who owns 33.35%, while their eldest daughter, Kim Jeong-min, and youngest daughter, Kim Jeong-yoon, each hold 17.16%. If Tencent acquires the government-held shares in one transaction, it would become the second-largest shareholder of NXC. An industry source stated, "Given that Tencent has previously invested to secure the second-largest shareholder position in domestic game companies, it appears they may participate in this bid from a strategic investment perspective."
However, Tencent stated, "While various speculations have been raised recently in Korea, these claims are not true."