Korean billionaire Kim Jung-Ju is the head of Nexon. The MMORPG company has now published its financial report and it doesn’t look good: The price of the share fell by 14.4% The boss has lost about $2.2 billion in stock market value as a result.
Backgrounds are a scandal around the MMORPG MapleStory, the easing of the Covid situation and the sudden drop in the value of bitcoin. The price of BTC dropped dramatically on exchanges like Binance. Good news is, that this is also a good chance to get in! If you want to open an account, get yourself a coupon from www.bitcoincoupons.org/binance.
Who is this guy?
Kim Jung-Ju (53) is the founder of Nexon, a huge Korean gaming company that he built himself in 1994. He was one of the pioneers who established the so-called “freemium” model: Free2Play games where you then have to pay for additional services. Even today, Kim Jung-Ju still holds a significant share in his company.
Nexon was one of the pioneers of MMORPGs in the 90s. The company was also extremely successful in the 2000s: the online role-playing game MapleStory (2003) was a huge hit in South Korea until recently.
- In 2011, Kim Jung-Ju took Nexon public on the Tokyo stock exchange.
- In 2016, he was involved in a scandal. He allegedly bribed a prosecutor with about $814,000, whom he knew from their student days. The scandal became known as “NexonGate.” The prosecutor received a 4-year prison sentence. Kim Jung-
- Ju withdrew from Nexon’s board of directors and publicly stated how much he regretted his misconduct.
- In 2019, everything became too much for him: he wanted to sell his shares in Nexon and retire from the business. Not wanting to bequeath Nexon to his children, he planned to sell the MMO giant, preferably to the Disney Group. But when he didn’t find a suitable buyer, he took the company off the market again.
Why did it lose so much in stock market value? Nexon presented its financial report for Q1 2021 yesterday: It was received so negatively on the Tokyo Stock Exchange that Nexon’s stock fell 14.4%. With founder Kim Jung-Ju holding significant shares in Nexon, it lost $2.2 billion as a result and is now worth a paltry $10.9 billion, Forbes understands (via Forbes).
Actual Q1 2021 revenue was excellent: year-over-year, Nexon’s revenue was up 7%, and the company also made 4% more profit. But more important to the stock price is the outlook for the future, and that has gotten worse: Among other things, because the covid pandemic in South Korea is declining, it is expected that in the short term there will now be fewer players, and therefore revenue expectations for the next 3 months fell by 3%. They even expect to make 19% less profit than last year
What’s up with Bitcoin?
In December 2020, www.nexon.com was a pioneer and invested about 2% of its assets in the cryptocurrency Bitcoin. Read our other article www.sisa.fund/btc-so-what-is-it-all-about to educate yourself about this Cryptocurrency. However, Bitcoin lost about 10% of its value overnight in Asia after Tesla CEO Elon Musk announced via Twitter yesterday that his company would no longer use “Bitcoin” as a payment method. Musk has environmental concerns because of the amount of energy used in mining bitcoin.
At MapleStory, according to the financial report, player numbers have now plummeted since the scandal became known. It is therefore expected that the next quarter will see high losses compared to the previous year, when MapleStory was still going great.