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Kakao Games

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Kakao Games is a game publisher that distributes mobile, PC, and console game content across Asia, Europe, and North America. It operates as a global multi-platform gaming company.

Also known as Daum Games · Engine Co., Ltd. · Enjin Co., Ltd. · Kakao Games Corp. · Kakao Games Corporation · 카카오게임즈

Investors · 6

Also in the syndicate · 3

NetmarblePremier M&A PEFTencent

Company profile

researched Aug 2026

Kakao Games Corp. (카카오게임즈) is a South Korean video game publisher and developer that services titles across mobile, PC, console and, historically, VR platforms. It publishes games in Korea and internationally across Asia, Europe and North America, positioning itself as a global multi-platform game company. Titles currently or previously serviced include Odin: Valhalla Rising, ArcheAge War, PUBG/Battlegrounds, Chrono Odyssey, World of Dokkaebi, Guardian Tales, Eversoul, Elyon, Path of Exile (Korea), Moonlight Sculptor, Eternal Return, BanG Dream! Girls Band Party! (Korea), Cookie Run and ArcheAge; ArcheAge Chronicles was released in 2025. A planned title, Capcom Super League Online, developed by Capcom Entertainment Korea, was cancelled after a 2018 closed beta following a business decision between the two companies.

The company operates overseas entities including Kakao Games Europe B.V., which has handled global publishing (Black Desert 2016-2019, Guardian Tales, Eversoul, Lost Eidolons) and strategic investment in developers, and Kakao Games Japan, which services titles such as Odin: Valhalla Rising, Eversoul and ArcheAge War in Japan. Development subsidiaries include Lionheart Studio, XLGames (52.97% stake), Ocean Drive Studio and Meta Bora, which develops casual games using the Kakao Friends IP and runs blockchain projects; it has also held a 10.4% stake in Action Square. Alongside publishing, Kakao Games has operated adjacent businesses including PC café publishing (Kakao Games PC Café) and game advertising (Kakao Game Ads), and previously screen golf through Kakao VX.

Kakao Games is headquartered in South Korea, with sources citing Jeju and an office at Alpha Dome Tower, Pangyoyeok-ro, Bundang-gu, Seongnam, Gyeonggi Province. It is led by co-CEOs Kim Tae-hwan and Lee Si-woo. Reported headcount was 473 as of February 2026 (427 as of the end of 2021).

Founding story

Kakao Games originated as Enjin (Engine) Co., Ltd., a game company established by CEO Namgung Hoon that received investment from Kakao and became a Kakao subsidiary before being merged with Kakao's Daum Game business and renamed Kakao Games in 2016.

Business model

Kakao Games earns revenue by publishing and operating games it develops in-house through subsidiaries or licenses from third-party developers, distributing them on mobile, PC and console across Korea and international markets. Complementary revenue lines described by the group include PC café publishing services for café operators and game advertising products, including KakaoTalk-based one-click pre-registration campaigns. The company also pursues strategic investments and acquisitions of promising developers to internalize development capability and broaden its portfolio.

Revenue comes from game publishing and operation across mobile, PC and console platforms, plus PC café publishing services and game advertising products. Reported 2021 figures were consolidated revenue of ₩1,124.8bn with consolidated operating profit and net profit also reported for that year.

Traction

Kakao Games reported 550 million total registered users after merging Kakao's game business in 2017. Consolidated 2021 revenue was ₩1,124.8bn (separate: ₩793.1bn), with consolidated operating profit of about ₩111.9bn and consolidated net profit of about ₩520.2bn. Market capitalization was ₩2.0917 trillion as of November 2023, and headcount was 473 as of February 2026.

Latest developments

In October 2025 Kakao Games said it had secured about ₩156.2bn ($111m) by agreeing to sell its entire stake in screen golf subsidiary Kakao VX to IVG, a Kakao Investment subsidiary, for ₩210bn ($153m) on 15 October, and by carrying out a third-party paid-in capital increase issuing 6.92m new shares at ₩15,680 each for ₩108.5bn. The proceeds were earmarked for strengthening finances and funding growth, particularly expansion of the PC online and console businesses including AAA titles. The Kakao VX sale followed Kakao Games' earlier buyout of a 34.8% stake from a financial investor for ₩162.3bn ($118m) to settle a shareholders' agreement. The company also signed a global publishing deal with Lionheart Studio for Project Q, an Unreal Engine 5 AAA MMORPG inspired by Norse mythology, planned for mobile and PC with cross-play. Reported developments in 2026 include LY Corp acquiring a majority stake with a $198m investment and LAAA Investment becoming the largest shareholder, per Korea Times reporting that Japan's LY (Line Yahoo) would become the largest shareholder.

Full profile — market position, technology, go-to-market, geography, history, risks & controversies

Market position

Kakao Games is a KOSDAQ-listed major Korean game company (ticker 293490) and has been the game subsidiary of the Kakao internet conglomerate, publishing both domestic and international titles. Following the 2017 merger of Kakao's game operations, the group reported total registered users of 550 million. Its market capitalization was reported at ₩2.0917 trillion as of 14 November 2023.

The company combines publishing with in-house development capability held through subsidiaries such as Lionheart Studio, XLGames, Ocean Drive Studio and Meta Bora, and distributes across mobile, PC and console with regional corporations in Europe, Japan and North America. Within the Kakao group it has been able to use the Daum game portal, the KakaoTalk social network and Kakao Friends character IP to acquire and connect players.

Technology

The company publishes and develops games for mobile, PC, console and VR platforms. Titles referenced include Unreal Engine 5-based development (Project Q with Lionheart Studio) and cross-play between mobile and PC. Subsidiary Meta Bora pursues blockchain projects alongside casual game development.

Go-to-market

The company publishes titles under its own brand and through regional subsidiaries in Europe, Japan and North America, applying localization strategies for each market. In Korea it has leveraged the Daum game portal and KakaoTalk's social network to connect players, and it markets titles through Kakao Game Ads channels and KakaoTalk-based pre-registration. It also signs publishing agreements with external developers such as Krafton, Grinding Gear Games, Cygames and Lionheart Studio.

Consumer gamers across mobile, PC and console platforms in Korea, Japan, other parts of Asia, Europe and North America, spanning casual games and MMORPGs; business-side customers include PC café operators and game advertisers.

Geography

Headquartered in South Korea (Jeju is listed as the registered headquarters; offices cited at Alpha Dome Tower in Pangyo, Bundang-gu, Seongnam, Gyeonggi Province), with overseas corporations in Europe (Kakao Games Europe B.V.), Japan (Kakao Games Japan) and North America. Games are distributed worldwide, including Korea, other parts of Asia, Europe and North America.

History

The business traces to Enjin (Engine) Co., Ltd., founded in 2013 (namu.wiki gives an establishment date of 22 August 2013 in its infobox and August 2015 in its history text) under CEO Namgung Hoon, which received investment from Kakao and became a Kakao subsidiary. In December 2015 Kakao decided to merge Enjin with its Daum Game unit; the combined entity launched in April 2016 and was renamed Kakao Games on 1 July 2016. In November 2017 Kakao transferred its remaining in-house game business division to Kakao Games, shifting the company from channeling toward publishing and development. Earlier milestones include a North American and European publishing agreement with Krafton for Elyon (November 2016), a Korean publishing agreement with Krafton for PUBG (August 2017), and the September 2017 acquisition of screen golf operator Maum Golf, renamed Kakao VX. The company raised 140 billion won from Tencent, Netmarble, Krafton, Actoz Soft and Premier M&A PEF in February 2018 after IPO plans announced in early 2018 were delayed, and listed on the KOSDAQ in September 2020, when the stock rose 30% to its daily limit on debut. In 2025 Kakao Games sold its stakes in Sena Technologies and Kakao VX, and in 2026 LAAA Investment became its largest shareholder.

Risks & controversies

The planned title Capcom Super League Online was cancelled in 2019 following a business decision between Kakao Games and Capcom, which also closed its Korean branch. Publishing agreements have ended or transferred, including Black Desert Online publishing rights handed to Pearl Abyss after 24 February 2021 and the Eternal Return publishing deal running from July 2021 to July 2024, with Kakao Games Europe ending service. The company has announced the shutdown of Eversoul after three years of service, and the IPO originally planned for 2018 was delayed until 2020. Ownership has shifted materially, with reported changes in largest shareholder in 2026.

Compiled by commissioned research from 8 cited public sources — announcements, filings, and press listed under research sources below.

Key figures

latest reported
Action Square ownership stakeJan 201810.4%
Capital stockJan 20217,745,416,900 KRW
Consolidated debt ratioJan 202177.9%
Consolidated net profitJan 2021520,154,676,371 KRW
Consolidated revenueJan 2021$1.1T
EmployeesFeb 2026473 people
Indie game developer fund contributionJan 202626,000,000,000 KRW
KOSDAQ tickerJan 2026293490
Market capitalizationNov 2023$2.1T
Separate debt ratioJan 202148.5%
Separate net profitJan 202127,683,669,180 KRW
Separate revenueJan 2021$793.1B
Total registered usersNov 2017550,000,000 users
XLGames ownership stakeJan 202653%

Company-reported or press-reported figures, each dated to when it was claimed — not independently audited.

Timeline · 19

launches, deals, and filings
Jan 2026
LAAA Investment became largest shareholder

Reporting also indicated Japan's LY (Line Yahoo) Corp would become Kakao Games' largest shareholder, with LY Corp acquiring a majority stake through a $198m investment.

source ↗

Oct 2025
Secured about $111m via Kakao VX sale and paid-in capital increase

Agreed to sell its entire stake in Kakao VX to IVG for 210 billion won ($153m) effective 15 October and to raise 108.5 billion won through a third-party paid-in capital increase, totalling 156.2 billion won ($111m) to strengthen finances and expand PC online and console businesses.

$111M source ↗

Oct 2025
Bought out 34.8% stake from financial investor for 162.3 billion won

Purchase for 162.3 billion won ($118m) settled a shareholders' agreement, preceding the Kakao VX sale.

$118M source ↗

Jan 2025
Investment of $15 million in Playable Worlds

Funding directed at development of a cloud-native sandbox MMO.

$15M source ↗

Jan 2025
Sold stakes in Sena Technologies and Kakao VX

source ↗

Jan 2025
Global publishing deal with Lionheart Studio for Project Q

AAA MMORPG inspired by Norse mythology built on Unreal Engine 5, planned for mobile and PC with cross-play support.

source ↗

Jan 2025
ArcheAge Chronicles released

Title developed by XL Games.

source ↗

Jan 2025
Announced shutdown of Eversoul after three years of service

source ↗

Jul 2024
Eternal Return publishing deal ended

Publishing deal with Nimble Neuron ran from July 2021 to July 2024.

source ↗

Feb 2021
Black Desert Online publishing rights handed to Pearl Abyss

source ↗

Sep 2020
KOSDAQ market debut

Kakao Games listed on the KOSDAQ; shares rose 30% on debut, hitting the daily limit.

source ↗

Feb 2020
Acquired XLGames for 118.1 billion won

source ↗

Mar 2019
Capcom Super League Online cancelled

The Capcom Entertainment Korea-developed title, planned for Korea only after an October 2018 Android closed beta, was scrapped following a business decision between Kakao Games and Capcom.

source ↗

Feb 2018
Raised 140 billion won from Tencent, Netmarble, Krafton, Actoz Soft and Premier M&A PEF

source ↗

Nov 2017
Absorbed Kakao's in-house game business division

Kakao transferred its game business division to Kakao Games, which became Kakao's sole game subsidiary and shifted from channeling to publishing and development.

source ↗

Sep 2017
Acquired screen golf operator Maum Golf, renamed Kakao VX

source ↗

Aug 2017
Domestic publishing contract with Krafton for PUBG

source ↗

Nov 2016
North American and European publishing deal with Krafton for Elyon

source ↗

Jul 2016
Merged entity renamed Kakao Games

Enjin (Engine) Co., Ltd. and Kakao's Daum Game unit were merged into an integrated corporation launched in April 2016, renamed Kakao Games on 1 July 2016.

source ↗

Dated company events from announcements, filings, and press; legal rows summarize public dockets and regulator releases.

In the news

Research sources · 8

primary sources listed

8 public sources were cited for this profile; the first-party ones are listed here.

Frequently asked questions

What does Kakao Games do?
South Korean publisher and developer of mobile, PC and console games, listed on the KOSDAQ.
Who are Kakao Games's investors?
Kakao Games's investors include Atinum Investment Co. Ltd., LB Investment, Premier Partners.