NEXON Co.

Nexon Co., Ltd. has announced a special dividend of surplus to shareholders, reflecting a strategic initiative to improve capital efficiency and address investor feedback. The Board of Directors has authorized a dividend payment of ¥415.00 per share, with a record date of September 30, 2026, and an effective payment date of November 25, 2026. The total provisional dividend amount is estimated at ¥324,001 million, sourced from retained earnings.

To facilitate this distribution, the company prepared provisional financial statements as of June 30, 2026. These statements indicate a robust financial position, with total assets of ¥584,429 million and total net assets of ¥579,666 million. While the company reported an operating loss of ¥2,131 million for the first half of 2026, it recorded an ordinary profit of ¥366,801 million and a profit for the provisional period of ¥346,205 million, providing the necessary liquidity to support the payout.

The decision to issue this special dividend is framed as a one-time measure to reduce accumulated surplus funds without compromising the company's capacity for future business investment. Nexon maintains that its flagship game portfolio provides sufficient financial stability to support both this return of capital and ongoing growth initiatives. Moving forward, the company intends to prioritize stable, consistent dividend payments and flexible share buybacks, while remaining open to future capital returns should excess funds accumulate again. This action underscores a commitment to balancing shareholder interests with the long-term financial health and operational requirements of the organization.

Nexon has announced a strategic initiative to distribute a special dividend of ¥415 per share to its shareholders, representing a total payout of approximately ¥324 billion, or $2 billion. This capital distribution is scheduled for shareholders of record as of September 30, 2026, pending formal approval by the Board of Directors. The move is designed to enhance capital efficiency by returning excess liquidity to investors while maintaining sufficient reserves to support the company’s ongoing investment requirements and long-term business growth.

The decision is underpinned by a robust financial position, characterized by ¥842 billion in cash and cash equivalents and consistent annual operating cash flow of roughly ¥100 billion. This special dividend complements the company’s existing shareholder return framework, which includes a recurring annual dividend of ¥60 per share and an active share buyback program. By the conclusion of 2026, these combined efforts will bring the total capital returned to shareholders since the company’s 2011 initial public offering to more than ¥900 billion.

These actions align with the company’s broader financial objectives, which include maintaining a minimum return on equity of 10% with a mid-to-long-term goal of reaching 15%. The policy remains committed to returning at least 33% of the prior year’s operating income to shareholders. As a global leader in the online gaming sector with operations spanning over 190 countries, the company continues to leverage its flagship franchises and IP growth initiatives to sustain its financial performance and support its ongoing commitment to shareholder value.

Nexon Co., Ltd. has officially authorized an interim dividend payment of 30.00 yen per share for the fiscal year ending December 31, 2026. This decision, approved by the Board of Directors, reflects the company’s ongoing commitment to returning profits to shareholders. The dividend is scheduled for distribution on September 25, 2026, to shareholders of record as of June 30, 2026, utilizing retained earnings as the primary funding source.

The total dividend payout is calculated at 23,567 million yen, representing a significant increase compared to the 15.00 yen per share distributed during the same period in the previous fiscal year, which totaled 12,014 million yen. This adjustment aligns with the company’s established policy of balancing shareholder returns with its current financial standing, management performance, and long-term earnings outlook.

The determination of this dividend amount follows a comprehensive review of the company’s internal financial health and market position. By doubling the interim dividend per share relative to the prior year, the company demonstrates confidence in its operational stability and cash flow generation. This payout remains consistent with the dividend forecast previously announced in February 2026, confirming that the company is meeting its stated financial objectives for the current fiscal period.

Nexon has significantly revised its dividend forecast for the fiscal year ending December 31, 2026, shifting from a previously announced annual dividend of 60.00 JPY to a revised total of 475.00 JPY per share. This adjustment is driven by the introduction of a substantial special dividend of 415.00 JPY, which is tentatively scheduled for a September 30, 2026, record date. The standard year-end dividend remains unchanged at 30.00 JPY. This action follows a fiscal year 2025 total dividend of 45.00 JPY, marking a substantial increase in capital distribution to shareholders.

The decision to distribute these surplus funds stems from a strategic commitment to improve capital efficiency in response to investor feedback. Nexon maintains that its core business, anchored by a robust portfolio of flagship game franchises, provides the financial stability and liquidity necessary to support this one-time payout without compromising future growth investments. The company emphasizes that this measure is intended to reduce accumulated surplus funds while preserving the financial flexibility required for ongoing operations and development.

Looking ahead, the company intends to maintain a shareholder return policy centered on stable, consistent dividends and flexible share buybacks. While this specific special dividend is a singular event, management remains open to future capital returns should excess funds accumulate again. The overarching corporate strategy continues to prioritize a balance between aggressive investment in business expansion and the enhancement of shareholder value through disciplined financial management.

Nexon achieved robust financial performance during the first half of 2026, characterized by a 17.4% year-over-year revenue increase to ¥273,310 million and a substantial 101.9% surge in profit attributable to owners of the parent, totaling ¥86,864 million. This growth trajectory was primarily fueled by the successful global launch of ARC Raiders and record-breaking quarterly contributions from the long-standing MapleStory franchise. Operating profit reached ¥89,447 million, supported by a strong cash position of ¥546,102 million and a healthy equity ratio of 79.4%, which underscores the company’s overall financial stability.

Geographically, the company experienced a strategic shift in its market performance. While traditional strongholds in Korea and China saw declines, significant growth in North American and European markets offset these losses. The formal inclusion of Europe as a distinct reportable segment highlights the increasing importance of Western markets to the company’s global footprint. This geographic diversification, combined with disciplined capital management—including the planned cancellation of 13.24 million treasury shares to enhance shareholder value—reflects a broader effort to optimize capital efficiency.

Looking ahead to the remainder of 2026, the company maintains a positive outlook, projecting continued revenue growth through the third quarter. While management anticipates rising marketing and operational expenses as they scale new titles and sustain existing franchises, the current momentum suggests a resilient path forward. By balancing aggressive investment in new content with a commitment to dividend growth and share buybacks, the company remains focused on sustaining long-term profitability across its global operations.

NEXON Co., Ltd. has authorized a share buyback program to enhance capital efficiency and facilitate more flexible capital management. By repurchasing its own equity, the company aims to optimize its financial structure and provide value to shareholders. This initiative is conducted in accordance with the Companies Act of Japan and reflects a strategic decision by the Board of Directors to utilize available resources for corporate financial optimization.

The program authorizes the acquisition of up to 14,000,000 ordinary shares, representing approximately 1.8% of the company’s total outstanding shares excluding treasury stock. The total expenditure for this buyback is capped at JPY 30 billion. The acquisition process will be executed through market purchases on the Tokyo Stock Exchange, spanning from May 15, 2026, to July 31, 2026.

As of April 30, 2026, the company reported 792,881,641 outstanding shares excluding treasury shares, with no existing treasury shares held prior to this announcement. This buyback represents a significant commitment to adjusting the company’s equity profile within the Japanese market. The program is strictly limited to the specified timeframe and financial ceiling, ensuring that the capital allocation remains within the parameters approved by the Board of Directors.

NEXON Co., Ltd. has officially disclosed a significant shift in its major shareholder structure following an internal share transfer between NXC Corporation and its subsidiary, NXMH B.V. On June 19, 2026, NXC Corporation acquired 118,527,140 shares of NEXON common stock from NXMH B.V. This transaction, which represents 14.98% of the total voting rights, qualifies as a purchase equivalent to a tender offer under the Financial Instruments and Exchange Act of Japan.

The acquisition has fundamentally altered the ownership stakes of the involved entities. NXC Corporation’s total holdings increased from 2,484,628 voting rights (31.40%) to 3,669,899 voting rights (46.38%), solidifying its position as the company’s primary shareholder. Conversely, NXMH B.V.’s stake was reduced from 14.99% to a negligible 0.01%, effectively removing it from the list of major shareholders.

The data for these calculations was derived from the total voting rights of 7,912,754, based on the company’s issued shares as of March 31, 2026. Despite the scale of this internal restructuring, NEXON Co., Ltd. has confirmed that the change in share ownership will have no impact on its management, business operations, or financial results. This disclosure serves to satisfy regulatory requirements under the Securities Listing Regulations and the Financial Instruments and Exchange Act regarding significant changes in corporate shareholding.

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.