Extraordinary shareholder meeting set for June 22 to appoint co-CEOs; incoming co-CEO Kim Tae-hwan led M&A and investment at Line Games

Kim Tae-hwan, co-CEO candidate for Kakao Games. [Provided by Line Games]
Kim Tae-hwan, co-CEO candidate for Kakao Games. [Provided by Line Games]

Kakao Games is set for a sweeping leadership change as Line Yahoo prepares to take over as its new owner.

The company will adopt a co-CEO structure led by Kim Tae-hwan, former chief strategy officer at Line Games, and Lee Si-woo, Kakao Games' current chief business officer.

Kim's appointment is drawing particular attention given his reputation as a mergers-and-acquisitions and investment specialist. Industry observers expect him to pursue an aggressive push to secure promising intellectual property for Kakao Games. He previously led M&A and investment activities at Nexon and Line Games.

According to a regulatory filing Friday, Kakao Games plans to hold an extraordinary shareholders meeting on June 22 to vote on appointing Kim and Lee as inside directors. Both are expected to be named co-CEOs following their election to the board.

Kim, born in 1978, graduated from Yonsei University with a degree in political science and diplomacy. He has held senior roles including vice president at Nexon Korea, chief business development officer at Nexon Japan, vice president at Nexon America and vice president at Line Games.

Lee graduated from Sogang University with a degree in business administration. He has worked as a business team leader at NHN (formerly Hangame) and Wemade, secretary-general of the Game Talent Foundation, and head of Kakao Games' mobile business division, and currently serves as the company's CBO.

Kim's move to Kakao Games stands out in the industry. He is widely regarded as one of the key executives behind Nexon's peak years, having driven overseas developer acquisitions and IP procurement.

In November 2023, Kim was appointed CSO at Line Games, stepping in as a fixer shortly after founder and CEO Kim Min-gyu stepped down amid internal turbulence. He is also reported to have overseen the current stake acquisition process at Kakao Games on Line Yahoo's behalf.

Lee Si-woo, chief business officer of Kakao Games. [Provided by Kakao Games]
Lee Si-woo, chief business officer of Kakao Games. [Provided by Kakao Games]

Industry insiders believe Line Yahoo chose Kim as the right person to engineer a turnaround at Kakao Games, which has been unable to shake a prolonged earnings slump. The company has posted operating losses for six consecutive quarters, from the fourth quarter of 2024 through the first quarter of this year. Its first-quarter operating loss reached 25.5 billion won (about $16.7 million) — nearly double the 12.4 billion won loss recorded in the same period a year earlier.

"Kim is known in the industry as a negotiations specialist who has delivered M&A and investment results at global gaming companies including Nexon and Line Games," an industry official said. "Drawing on his experience in business development and strategy execution in global markets, he is expected to help shape Kakao Games' mid- to long-term business strategy and expand the company's IP portfolio through M&A and strategic investment."

Meanwhile, LAAA Investment — a vehicle funded by Line Yahoo — acquired a portion of Kakao's stake in Kakao Games for approximately 300 billion won, becoming the company's largest shareholder. Kakao will reduce its holding from 37.57 percent to around 14 percent, remaining as the second-largest shareholder. The change in controlling shareholder is expected to be completed this month after financing procedures are finalized.


ko@heraldcorp.com