Headquarters of Nexon Co.(image: Yonhap)
SEOUL, June 17 (Korea Bizwire) — The Korea Game Society issued a strongly worded statement on Monday, condemning reports of a potential takeover bid by Chinese tech giant Tencent for South Korean gaming powerhouse Nexon, framing the move as a threat to national industrial sovereignty rather than a routine business transaction.
Describing the reported acquisition attempt as “not just foreign capital encroachment, but a direct challenge to South Korea’s control over a core industry,” the academic association urged the government to intervene and classify the gaming sector as a national strategic industry.
“This is a matter of national security that the government cannot afford to remain neutral on,” the association said. “It is not merely a private-sector deal—it is a deliberate attempt at systemic control over one of Korea’s key industries.”
Bloomberg reported on June 12 that Tencent Holdings is considering a $15 billion (approx. 20 trillion won) bid to acquire Nexon in an effort to bolster its global gaming division, and has reportedly been in contact with the family of the late founder Kim Jung-ju. Neither Tencent nor Nexon’s holding company, NXC, has issued an official response.
Wi Jung-hyun, President of the Korea Game Society (Image courtesy of the Korea Game Society)
A Chinese IT media outlet reported the following day that a Tencent insider denied the acquisition rumors, stating the company is neither in talks with the founder’s family nor pursuing a deal for Nexon.
Nonetheless, the Korea Game Society urged the incoming Lee administration and National Assembly to take proactive legislative and regulatory action to safeguard the domestic gaming industry.
“This issue is a litmus test for how the government views the future of Korea’s gaming sector,” said Wi Jung-hyun, president of the Korea Game Society and professor at Chung-Ang University. “The government and lawmakers must no longer turn a blind eye. Immediate steps are needed to implement regulatory protections and prevent industrial subjugation.”
Lina Jang (linajang@koreabizwire.com)
