it_chosun131d ago
Major game companies have embarked on corporate value enhancement initiatives, rolling out record-breaking cash dividends and treasury stock cancellations. This is interpreted as their determination to reestablish the value of undervalued gaming stocks despite improved earnings and to restore market confidence by sharing growth fruits with shareholders./ ChatGPT-generated image According to industry sources on the 13th, Krafton has finalized a mid-to-long-term shareholder return policy worth 1 trillion won. This represents an expansion of over 44% compared to the total shareholder returns of 693 billion won during the previous three-year period (2023-2025).Krafton will also implement cash dividends for the first time since its founding. The company plans to distribute a total of 300 billion won in cash dividends over three years, at 100 billion won annually. The strategy is to enhance shareholder value by combining regular dividend policies alongside existing treasury stock purchases and cancellations.Netmarble has decided to distribute 71.8 billion won in cash dividends, approximately 30% of its controlling shareholder net profit. Simultaneously, it will cancel all 4.7% of already acquired treasury shares. Additionally, the company plans to expand its shareholder return ratio to up to 40% from 2026 to 2028.Mid-sized game companies are also strengthening shareholder returns. Com2uS recently announced a cash dividend plan totaling 14.8 billion won. The company also conducted a large-scale treasury stock cancellation in January, eliminating 5.1% of total issued shares, equivalent to 50% of its treasury holdings. Furthermore, executives including CEO Nam Jae-kwan demonstrated their commitment to responsible management by purchasing additional company shares. Neowiz announced it would return 20% of the previous fiscal year's consolidated operating profit to shareholders annually. The distinctive feature is the formalization of a performance-linked return policy. The company plans to use the entire 50 billion won capital reserve reduction secured at the extraordinary shareholders' meeting in December as a funding source for mid-to-long-term dividends to return to shareholders. Webzen also resolved to distribute dividends totaling 20.3 billion won and cancel treasury shares equivalent to 10.5% of total issued shares to enhance shareholder value. An additional non-taxable special dividend of 16.5 billion won is scheduled for payment within this year.The background behind the gaming industry's successive shareholder return measures since early this year lies in growing shareholder voices demanding normalization of gaming stock valuations. While KOSPI has broken through the 5,400 level, gaming stocks remain unable to escape undervaluation despite rising earnings. The causes include a complex mix of factors: inadequate shareholder return policies, industry deterioration due to decreased gaming usage, intensified global competition, and increased interest in AI technology stocks.The common feature of game companies' shareholder return policies this year is that they were implemented on a mid-to-long-term basis rather than as temporary measures, securing sustainability and predictability of shareholder return policies. This is interpreted as a movement to induce corporate value reassessment by increasing shareholder return ratios and improving capital efficiency through cash dividends and treasury stock cancellations in the long term.An industry insider stated, "In the past, the strategy of reinvesting profits for growth was prioritized, but now it's difficult to gain market trust without sharing results with shareholders," adding, "The trend of strengthening shareholder returns will continue alongside earnings improvements going forward."swchun@chosunbiz.com
