South Korean Game Companies Boost Dividends, Share Cancellations to Calm Investors
SEOUL, South Korea (AP) – Facing uncertainty around new game releases, several of South Korea’s leading video game companies are moving to bolster investor confidence through increased dividends and large-scale share cancellations, a trend analysts say could stabilize market expectations.
The moves, announced this week by Krafton, Netmarble, Com2uS, and Neowiz, reflect a broader effort within the competitive gaming sector to demonstrate long-term value despite the inherent risks associated with relying on the success of individual titles. Earnings in the industry can fluctuate dramatically depending on how well new games perform, making consistent returns a key concern for shareholders.
Krafton, the company behind PUBG: Battlegrounds, announced plans to return over 1 trillion won ($675 million) to shareholders through 2028 – a 44% increase over its previous three-year plan. This includes 300 billion won ($203 million) in cash dividends over the next three years, structured as a capital reduction dividend to minimize tax implications for smaller investors. Krafton also intends to repurchase and cancel over 700 billion won ($473 million) worth of its own shares, aiming to improve capital efficiency.
Netmarble is also increasing its shareholder payouts, committing to 71.8 billion won ($48.5 million) in cash dividends, equivalent to roughly 30% of controlling shareholder net profit. The company also plans to cancel 4.7% of its existing shares and has set a longer-term goal of increasing its shareholder return ratio to 40% by 2028.
Even mid-sized publishers are joining the trend. Com2uS cancelled 5.1% of its shares earlier this year and approved a 14.8 billion won ($10 million) cash dividend. Notably, five of the company’s executives, including CEO Nam Jae-kwan, collectively purchased 13,210 shares.
Neowiz announced a policy to return 20% of its consolidated operating profit to shareholders through a combination of share buybacks, cancellations, and dividends, potentially amounting to around 12 billion won ($8.1 million) based on 2025 results.
Analysts suggest these proactive measures could support higher valuations if company performance improves. The announcements come as the South Korean gaming industry navigates a challenging landscape, seeking to reassure investors amid the unpredictable nature of game development and launch.
— Reported by Asia Today; translated by UPI
