Smilegate paid nearly 100 billion won in dividends to founder Kwon Hyuk-bin, chief vision officer (CVO), even as last year's revenue and profit both declined.
According to the audit report on the 14th, Smilegate's revenue for the 2024 fiscal year was 1.4365 trillion won, down 5.6% from a year earlier. Operating profit fell 30.1% to 359.8 billion won, and net profit dropped 36.1% to 302.3 billion won.
Amid a broad deterioration in profitability, the large-scale dividends stand out. Smilegate paid a total of 168.4 billion won in cash dividends out of retained earnings last year.
The company is an unlisted firm wholly owned by CVO Kwon Hyuk-bin, so most of the dividends accrue to Kwon. Excluding the 2024 payout of 69.6 billion won, the dividends that went to Kwon last year came to 98.7 billion won.
This year, Smilegate merged its holding company and major subsidiaries to shift to a single corporate entity. It integrated Smilegate Entertainment, the developer of "CrossFire," and Smilegate RPG, the developer of "LOST ARK," among others, to simplify its governance structure and improve management efficiency.
In the industry, some interpret the restructuring and large dividends as preliminary steps with an eye toward a future initial public offering (IPO) or securing investment resources.
However, the company has not offered a separate position on future capital market plans or investment strategy.