NEXON Co.

NEXON Co., Ltd. has finalized a decision to receive a dividend of surplus from its consolidated subsidiary, NEXON Korea Corporation. This financial transaction, authorized on June 29, 2026, involves a total dividend payment of JPY 373,464 million. The primary purpose of this action is to facilitate the transfer of capital from the subsidiary to the parent company, reflecting the internal financial management strategy of the organization.

For the fiscal year ending December 31, 2026, the parent company will recognize this dividend income as non-operating income within its standalone financial statements. Because the transaction occurs between a parent company and its consolidated subsidiary, the dividend payment does not alter the overall consolidated business results for the fiscal year. The movement of funds remains internal to the corporate group, ensuring that the consolidated financial position of the organization remains unchanged despite the significant shift in standalone accounting figures.

This announcement pertains specifically to the corporate financial activities of NEXON Co., Ltd. and its primary subsidiary in Korea. The disclosure serves to inform shareholders and market participants of the internal capital allocation, ensuring transparency regarding the company’s non-operating income streams for the 2026 fiscal period. No further adjustments to the company’s broader financial outlook or consolidated performance metrics are required as a result of this dividend distribution.

Nexon Co., Ltd. is executing a strategic share buyback program to manage capital allocation and enhance shareholder value. This initiative, authorized by the Board of Directors on May 14, 2026, operates under the provisions of the Companies Act of Japan and involves the acquisition of ordinary shares through market purchases on the Tokyo Stock Exchange. The program is scheduled to run from May 15, 2026, through July 31, 2026, with a maximum authorization of 14 million shares or a total expenditure of JPY 30 billion.

During the month of June 2026, the company acquired 5,061,400 ordinary shares at a total cost of JPY 11,230,142,950. These transactions contribute to a broader cumulative progress since the program’s inception. From the commencement of the buyback on May 15, 2026, through June 30, 2026, Nexon has successfully repurchased an aggregate of 7,957,400 shares, representing a total investment of JPY 17,750,270,600.

The current progress indicates that the company is effectively utilizing its authorized capital to reduce the number of outstanding shares, which initially accounted for 1.8% of the total shares outstanding excluding treasury stock. By maintaining a consistent acquisition pace on the Tokyo Stock Exchange, the company remains well within its established financial and volume limits as it approaches the July 31, 2026, conclusion date for the program. This systematic approach reflects the company's ongoing commitment to its capital management strategy within the Japanese equity market.

Nexon’s 2026 Capital Markets Briefing outlines a strategic transformation plan focused on optimizing game development processes, enforcing cost discipline, and expanding its global intellectual property footprint. Despite the company’s strong financial position—highlighted by 2025 record revenues of ¥475 billion, operating income of ¥124 billion, and over ¥800 billion in cash reserves—the leadership team is prioritizing long-term franchise sustainability over short-term gains. The strategy emphasizes leveraging deep player engagement data to inform creative decisions, specifically through the integration of proprietary artificial intelligence trained on decades of interaction history.

The company’s growth strategy centers on a dual approach: vertical expansion of established franchises such as MapleStory, Mabinogi, and Dungeon&Fighter, alongside the development of new global titles. The Dungeon&Fighter series serves as a primary example of this model, with four new titles currently in the pipeline, including Dungeon&Fighter: Idle RPG, Dungeon&Fighter Classic, and the AAA-focused Project OVERKILL. These efforts are supported by a robust development schedule that includes the upcoming release of Vindictus: Defying Fate and the survival-themed NAKWON: LAST PARADISE, the latter of which recently demonstrated strong market potential by attracting over 37,000 concurrent players during a closed-alpha test.

Operating globally across more than 190 countries, Nexon is positioning itself to capture a broader international audience by modernizing its development workflows. By utilizing AI to provide context for game design and live service support, the company aims to empower developers rather than replace them. This methodology is intended to ensure that new releases maintain the high-quality standards required to compete in the global PC, console, and mobile markets, effectively transitioning the company from a regional powerhouse into a more diversified, global leader in online entertainment.

Nexon Co., Ltd. maintains a significant corporate relationship with NXC Corporation, which serves as its primary affiliated entity. As of December 31, 2025, NXC Corporation holds a total voting interest of 46.9 percent in Nexon, comprised of 31.3 percent held directly and 15.6 percent held through other consolidated financial instruments. This ownership structure classifies NXC Corporation as a controlling shareholder, though the two entities operate in distinct sectors; while Nexon focuses on the online gaming industry, NXC Corporation and its other subsidiaries primarily engage in investment and non-gaming business activities.

The operational relationship between the two companies is defined by a formal trademark licensing agreement. Nexon and several of its key international subsidiaries, including NEXON Korea Corporation and Nexon America Inc., utilize the NEXON brand name under a licensing arrangement with NXC Corporation. Under the terms of these agreements, Nexon pays a recurring license fee calculated as a specific percentage of its total revenue. The contract includes provisions that grant Nexon the right to extend the licensing agreement, ensuring continued access to the trademark for its global operations.

This disclosure serves to clarify the governance and financial ties between the listed entity and its controlling shareholder. By outlining the ownership percentages and the nature of the trademark licensing, the company provides transparency regarding its corporate structure and the material financial obligations resulting from its affiliation with NXC Corporation. These arrangements remain a central component of Nexon’s operational framework as it continues to manage its brand identity and market presence within the global gaming sector.

NEXON Co., Ltd. announced the Board’s selection of candidates for its 24th Annual General Meeting on March 25, 2026. The slate includes six directors, among them two new outside directors and three individuals who will serve concurrently on the Audit and Supervisory Committee. Current executives Junghun Lee, Shiro Uemura, Patrick Söderlund and Daehyun Kang are retained. New appointments comprise Alexander Iosilevich, a seasoned investment‑banking executive with no shareholding in NEXON, and Kaoru Hattori, a Japanese lawyer and partner at Nagashima Ohno & Tsunematsu who also holds trustee and board roles in Toyo Seikan Group Holdings. The Audit and Supervisory Committee will be strengthened by Shiro Kuniya, Naoya Tsurumi—an experienced Sega executive with extensive leadership roles across SEGA subsidiaries—and Hanmin Cho, a private‑equity professional who has led investment divisions at NXC Corporation and holds directorships in NXMH B.V. and Bitstamp Limited.

The announcement details each candidate’s career trajectory, concurrent positions, and share ownership (all new candidates hold zero shares). The selection aligns with Korean Companies Act provisions for outside directors and reflects NEXON’s strategy to blend internal leadership continuity with external expertise in finance, gaming operations, and regulatory oversight. The candidates’ diverse backgrounds—spanning global investment banking, legal practice, gaming industry leadership, and private‑equity management—are intended to enhance governance, strategic direction, and risk oversight for the company’s operations in South Korea and its international markets.

NEXON Co., Ltd. has formalized a strategic reduction in its equity base through the mandatory cancellation of treasury shares, a move approved by its Board of Directors in accordance with Article 178 of the Companies Act. This corporate action involves the retirement of 36,487,500 ordinary shares, representing approximately 4.4% of the company’s total issued shares as of January 31, 2026. By eliminating these shares, the company effectively reduces its total outstanding share count to an expected 792,078,539 shares, thereby consolidating ownership for existing shareholders.

The scope of this cancellation encompasses the entirety of the treasury shares held by the company as of the end of January 2026. The execution of this retirement is scheduled for February 27, 2026. This decision reflects a standard capital management practice within the Japanese gaming and technology sectors, typically aimed at improving earnings per share and enhancing shareholder value by permanently removing shares from circulation.

The data provided indicates a precise adjustment to the company's capital structure within the Tokyo Stock Exchange Prime Market. This administrative procedure follows the company's internal governance protocols and adheres to Japanese regulatory requirements for publicly traded entities. The financial impact is centered on the contraction of the share float rather than a change in the underlying business operations or geographic footprint of the organization.

Nexon reported record-breaking financial results for the fiscal year ended December 31, 2025, driven by a strategic IP growth initiative that balanced the expansion of legacy franchises with successful new global launches. Full-year revenue reached ¥475.1 billion, a 6% increase year-over-year, while operating income remained stable at ¥124.0 billion. The fourth quarter saw a significant revenue surge of 55% to ¥123.6 billion, although net income declined 66% to ¥10.9 billion, primarily due to fluctuations in foreign exchange gains compared to the previous year and higher-than-anticipated costs related to performance bonuses and platform fees.

The growth was spearheaded by the launch of ARC Raiders, which sold over 14 million units within 15 weeks and achieved a peak of 960,000 concurrent users. Simultaneously, the 22-year-old MapleStory franchise delivered its highest annual revenue in history, growing 43% year-over-year. This performance offset a 21% decline in the Dungeon&Fighter franchise, despite a strong recovery in its PC segment in China and Korea. The period was also marked by a significant player trust initiative regarding MapleStory: Idle RPG; a coding error led Nexon to offer full refunds, resulting in a ¥9 billion reduction in Q4 revenue.

Geographically, the results reflect Nexon’s successful diversification beyond its traditional Asian strongholds into Western markets via console and PC platforms. Looking ahead to the first quarter of 2026, the company expects revenue growth between 32% and 44%, supported by sustained momentum from new titles and major updates to core IPs. Nexon remains committed to aggressive shareholder returns, doubling its dividend and completing a ¥100 billion share buyback program during the fiscal year.

Nexon Group achieved record-breaking consolidated revenue of ¥475.1 billion for the fiscal year ended December 31, 2025, representing a 6.5% year-on-year increase. This growth was primarily driven by the Korea segment, which contributed ¥400.7 billion, and a robust performance in the PC online market. Key intellectual properties, including Dungeon&Fighter and MapleStory, alongside the successful launch of ARC Raiders, underpinned this expansion. Despite the revenue gains, profit attributable to owners fell 31.7% to ¥92.1 billion. This decline was largely influenced by foreign exchange losses, increased marketing and royalty expenses, and an ¥8.6 billion impairment loss on equity method investments.

The financial position remains strong, characterized by a cash reserve of ¥498.9 billion and total assets reaching ¥1.41 trillion. Net cash from operating activities rose significantly to ¥171.9 billion, while investing activities turned positive due to ¥197.6 billion in proceeds from the sale and redemption of securities. To enhance shareholder value and capital efficiency, the annual dividend was doubled to ¥45.00 per share, and the board approved the cancellation of approximately 36.5 million treasury shares. These actions followed a substantial ¥96.9 billion allocation toward treasury share purchases during the fiscal year.

Looking forward to the first quarter of 2026, revenue is projected to grow between 32.1% and 44.0% year-on-year, reaching up to ¥164.0 billion. This optimistic outlook is supported by the continued momentum of the MapleStory franchise and the integration of recent releases like Mabinogi Mobile. While the Dungeon&Fighter franchise may face a temporary revenue decline, the overall trajectory suggests a pivot toward aggressive growth. The company continues to leverage its free-to-play microtransaction model across PC and mobile platforms to maintain its dominant market position in Korea and expand its footprint in North American and European markets.

Nexon Co., Ltd. has announced its slate of candidates for the Board of Directors, including members of the Audit and Supervisory Committee. These appointments are scheduled for official resolution at the 24th Annual General Meeting of Shareholders on March 25, 2026. The selection reflects a mix of internal leadership continuity and the strategic addition of external expertise in legal, financial, and industry-specific domains.

The proposed slate for general Directors includes current executives Junghun Lee (CEO), Shiro Uemura (CFO), Patrick Söderlund (Executive Chairman), and Daehyun Kang. Alexander Iosilevich, currently an Audit and Supervisory Committee member and Global President of NXC Corporation, is transitioning to a general Director role. Additionally, Kaoru Hattori, a partner at Nagashima Ohno & Tsunematsu with extensive legal and trade policy experience, is nominated as a new Outside Director.

For the Audit and Supervisory Committee, the candidates include Shiro Kuniya, Naoya Tsurumi, and Hanmin Cho. Tsurumi brings significant gaming industry experience from his previous leadership roles at SEGA SAMMY HOLDINGS and SEGA CORPORATION. Cho, currently the Head of Investment Division (Korea) for NXC Corporation, provides expertise in private equity and accounting. All three committee candidates are designated as Outside Directors under the Companies Act, emphasizing the organization's focus on independent oversight and corporate governance. None of the new candidates currently hold shares in the company.

Nexon Co., Ltd. has officially approved a significant increase in its dividend payments for the fiscal year ending December 31, 2025, reflecting a robust commitment to shareholder returns. The year-end dividend is set at 30.00 yen per share, which aligns with the forecast previously issued in November 2025. This figure represents a 100% increase over the 15.00 yen per share paid out during the same period in the previous fiscal year. The total dividend payment for this period amounts to approximately 23,787 million yen, sourced entirely from retained earnings, with an effective payment date scheduled for March 26, 2026.

The annual dividend structure for the 2025 fiscal year totals 45.00 yen per share when combining the interim and year-end distributions. This is a substantial rise from the 22.50 yen total distributed in 2024. The decision to double the payout is based on a corporate policy that evaluates shareholder equity, management performance, and the overall earnings outlook to determine appropriate profit distribution. By doubling the per-share payout, the company signals a strong financial standing and a positive outlook on its business results.

This financial action pertains specifically to Nexon’s performance within the Japanese securities market, where it is listed on the Tokyo Stock Exchange Prime Market. The scope of the announcement covers the full 2025 fiscal year, providing a comparative analysis against 2024 data to illustrate the company's aggressive shift toward higher shareholder compensation. The strategy underscores a balanced approach to utilizing retained earnings while maintaining the necessary capital to support ongoing business operations and future growth initiatives.