Korea relaunches Nexon holding firm stake sale

South Korea is moving to offload its 4.7 trillion won ($3.46 billion) stake in NXC Corp., the holding company of game developer Nexon.

The Ministry of Economy and Finance opened the sale process earlier this week, putting its shares in NXC up for public bidding, according to industry sources Thursday.

NXC is the largest shareholder of Tokyo-listed Nexon Japan and the sole owner of its Korean subsidiary, Nexon Korea.

The ministry acquired a roughly 30 percent stake — about 852,000 shares in total — in February 2023 from the family of late Nexon founder Kim Jung-ju as payment for inheritance tax.

This marks the government’s third attempt to sell the stake, following two failed efforts due to a lack of interested buyers. The asking price includes a 20 percent management control premium, yet any purchaser would still face limited sway over the company, as the founder’s family retains a 68 percent majority.

The government’s earlier insistence on a full block sale also deterred bidders. While it continues to favor a bulk sale, officials say they may consider splitting the stake depending on market conditions.

Preliminary bids will be accepted through Aug. 25, according to reports.

Industry speculation suggests Chinese tech giant Tencent may be eyeing the stake. Tencent has repeatedly emerged as a potential buyer of Nexon since 2019, when Kim first put Nexon up for sale, though it has never formally joined the bidding process. The company also denied reports in June that it was considering acquiring a stake.

Talk of Tencent’s interest is driven by its continued expansion into Korea’s tech and entertainment sectors. The company is the second-largest shareholder in Kospi-listed game developers Shiftup and Netmarble, with stakes of approximately 34.8 percent and 17.5 percent, respectively.

Tencent also holds a 14 percent stake in Krafton and 4 percent in Kakao Games. Its influence extends beyond gaming, with its music subsidiary, Tencent Music, owning 9.7 percent of K-pop powerhouse SM Entertainment.

Meanwhile, both the ministry and Tencent declined to confirm whether the company is participating in the preliminary bidding.