Logo of Phnom Penh Post newspaper Phnom Penh Post - Saudi wealth fund buys stakes in Korea game makers

Saudi wealth fund buys stakes in Korea game makers

Content image - Phnom Penh Post
Saudi Arabian sovereign wealth fund Public Investment Fund (PIF) is chaired by Crown Prince Mohammed bin Salman, who is also the country’s deputy prime minister. AFP

Saudi wealth fund buys stakes in Korea game makers

Saudi Arabia is pouring money into South Korean game makers NCSoft and Nexon, doubling down on its bet in the gaming industry.

Public Investment Fund (PIF), the Middle Eastern country’s sovereign wealth fund, acquired an additional 563,566 shares of NCSoft for about 290 billion won ($240 million) through six transactions between February 8-16, according to a regulatory filing submitted to the Financial Supervisory Service on March 10.

With the latest investment, PIF has become NCSoft’s second-largest shareholder with a 9.26 per cent stake, only behind the company’s founder and CEO Kim Taek-jin with an 11.9 per cent stake.

Since PIF’s first purchase of NCSoft’s shares in January, the Saudi fund has injected over one trillion won into the gaming firm behind the popular Lineage series.

PIF said it intended to simply invest, indicating it was not interested in being involved in management.

“We and all of our specially related persons will exercise rights only to the extent granted under laws, irrespective of the number of securities held,” PIF said in a letter to the Financial Services Commission and Korea Exchange.

The sovereign wealth fund also bought an additional 1.07 per cent stake in NCSoft’s crosstown rival Nexon, a Seoul-founded and Tokyo-listed game maker best known for the multiplayer online role-playing game MapleStory, between February 15 and March 1, according to a filing from Japan’s financial regulator. The investment was worth about 250 billion won.

PIF now holds a 7.09 per cent stake in Nexon, becoming its fourth-largest shareholder. The Saudi fund has so far poured over two trillion won into Nexon since January.

Aside from Korean game makers, PIF has invested in other major global game developers such as Activision Blizzard, Electronic Arts, Take-Two Interactive, SNK and Capcom.

Industry watchers say the PIF’s aggressive investments reflect the Middle Eastern country’s burgeoning interests in the gaming industry and its growth potential.

“I think [PIF’s investment] shows that it’s taking high value in the game makers. It could provide a momentum for the companies in regard to developing new titles,” said a source from a gaming company who requested anonymity.

Separately, the PIF, who launched a gaming company of its own named Savvy Gaming Group in January, said the new entity seeks to be the leading gaming and e-sports group domestically and internationally, and will work to further develop an integrated ecosystem for the sector.

According to the Sovereign Wealth Fund Institute, PIF is the world’s sixth-largest sovereign wealth fund with total assets worth $580 billion. The fund is chaired by Saudi Crown Prince Mohammed bin Salman, who is also the country’s deputy prime minister.

THE KOREA HERALD/ASIA NEWS NETWORK

MOST VIEWED

  • Joy as Koh Ker Temple registered by UNESCO

    Cambodia's Koh Ker Temple archaeological site has been officially added to UNESCO’s World Heritage List, during the 45th session of the World Heritage Committee held in Riyadh, Saudi Arabia, on September 17. The ancient temple, also known as Lingapura or Chok Gargyar, is located in

  • Ream base allegations must end, urges official

    A senior government official urges an end to the allegations and suspicions surrounding the development of Cambodia’s Ream Naval Base, now that Prime Minister Hun Manet has addressed the issue on the floor of the 78th UN General Assembly (UNGA 78). Jean-Francois Tain, a geopolitical

  • Cambodia set to celebrate Koh Ker UNESCO listing

    To celebrate the inscription of the Koh Ker archaeological site on UNESCO’s World Heritage List, the Ministry of Cults and Religion has appealed to pagodas and places of worship to celebrate the achievement by ringing bells, shaking rattles and banging gongs on September 20. Venerable

  • CP denied registration documents by ministry

    The Ministry of Interior will not reissue registration documents to the Candlelight Party (CP). Following a September 21 meeting between ministry secretary of state Bun Honn and CP representatives, the ministry cited the fact that there is no relevant law which would authorise it to do

  • Cambodian diaspora laud Manet’s UN Assembly visit

    Members of the Cambodian diaspora are rallying in support of Prime Minister Hun Manet’s forthcoming visit to the 78th UN General Assembly (UNGA 78) in the US’ New York City this week. Their move is an apparent response to a recent call by self-exiled former

  • After three deferrals, Capital Gains Tax to take effect Jan 1, 2024

    The General Department of Taxation (GDT) will implement the Capital Gains Tax starting January 1, 2024 to after being deferred three times as industrial players warn that the implementation might have some negative impact on the property market growth, which is down due to the economic downturn.