Kim Jung-ju, founder of Nexon and director of NXC, passed away suddenly, shocking the industry.
It is difficult to mourn the death of founder Kim right now, but the industry is paying attention to what choices and decisions the bereaved family will make over the management rights that the deceased owns and the stakes in affiliates.
According to NXC on the 1st, Nexon founder Kim Jung-ju passed away in Hawaii at the end of last month. He is 54 years old.
The late founder Kim Jung-ju was born in 1968 and graduated from the Department of Computer Engineering (B.A.) at Seoul National University. Founder Kim obtained a master’s degree in computer science from the Graduate School of the Korea Advanced Institute of Science and Technology (KAIST), and established Nexon in 1994, six months after his doctoral program, laying the foundation for a global game company.
Regarding this, a representative of NXC said, “NEXC director Kim Jung-ju, who founded Nexon, passed away in the United States at the end of last month. We ask for your understanding that we cannot explain in detail because the bereaved family is in a devastating situation.” He has been receiving treatment and it is regrettable that it has recently deteriorated. I sincerely hope that you will consider the feelings of the bereaved family who are trying to send the deceased away quietly.”
The sudden death of Nexon founder Kim Jung-ju is a shock to the industry. In particular, it is said that it is an unexpected tragedy in that it has been actively involved in investment and social contribution activities in the non-game sector as well as games.
Founder Kim had a special love for children than anyone else. He became a model for his industry by actively continuing social contribution activities after the establishment of the Nexon Foundation in 2018, along with sponsoring the construction of the ‘Purme Foundation Nexon Children’s Rehabilitation Hospital’, the first children’s rehabilitation hospital in Korea.
While the industry is expressing condolences over the death of founder Kim, the industry is keen to see if there will be any changes in the inheritance of shares to defend NXC’s management rights and the vision of Nexon’s business in the future. This is because it is expected that the aftermath will not be formidable, such as a huge inheritance tax following the inheritance of shares after the sadness.
According to the announcement of the status of large-scale corporate groups in May last year, 100% of NXC’s shares are owned by founder Kim Jeong-ju and his relatives. Founder Kim Jung-ju owns 67.49%, his spouse 29.43%, and his two children 0.68% each. In addition, Wise Kids, a family-owned affiliate, also owns a 1.72% stake in NXC.
NXC has subsidiaries such as Nexon Japan (47.89%), which is in charge of the game sector, NXMH (100%)-related real estate and investment companies in overseas regions, and Stokke (100%) for baby products. Here, it was found that Nexon Japan owns 100% of Nexon Korea.
The value of the stake held by founder Kim Jung-ju is estimated to be 10 trillion won as of 2020. NXC’s consolidated sales in 2020 were KRW 3.91.3 trillion and operating profit was KRW 1.108 trillion.
It is reported that the bereaved family is not in a situation where it is possible to give a separate position on the inheritance of shares of founder Kim Jung-ju. It is expected that the related contents will be released when the position of the bereaved family is cleared up.
Related articles
However, the direction of the existing business is not expected to change significantly, apart from inheritance of assets such as equity and management rights. Founder Kim Jung-ju transferred the position of CEO of NXC to Lee Jae-gyo, one of the founding members, in July of last year, and after that, he focused only on investment and social contribution activities.
Regarding this, a high-ranking official in the industry said, “First, please refrain from the deceased. It seems that they will take a separate position on sensitive areas such as etc. Until then, it is difficult to predict anything.”