South Korean law firm Lee & Ko is counselling both listed global game developer Netmarble and its private affiliate Netmarble Neo on their proposed share swap, which will see the latter become a wholly owned subsidiary.
“Netmarble will be able to fully reflect the subsidiary’s development performance and growth potential in its corporate value, while Netmarble Neo is expected to benefit from more efficient and timely management decision-making, reduce administrative costs and focus on its core strengths in game development and R&D,” Jongwook Kim, lead partner for the Lee & Ko team, told Asia Business Law Journal.
On 25 March 2026, Netmarble announced plans to cancel the proposed IPO of Netmarble Neo and instead make it a wholly owned subsidiary through a comprehensive share exchange, which was expected to be completed in July. The company previously held a 78.5% stake in Netmarble Neo.
In addition to Jongwook Kim, the Lee & Ko team comprises associates Hee Song, Jinsoo Kim, Dong Yoon Kim and Ji Hyeok Nam. The team’s work involves advising on reviewing and structuring the relevant procedures, and the timeline to ensure the comprehensive share exchange is conducted lawfully, and adheres to regulatory processes, including board and shareholder approvals and required disclosures.
“This transaction involved a share exchange between a listed and an unlisted company and particular attention was paid to structuring procedures and reviewing disclosures in line with the evolving regulatory environment,” said Jongwook Kim.
Netmarble Neo’s general meeting and Netmarble’s board meeting are both set for 28 May 2026 to seek approval for the companies’ comprehensive share exchange. If greenlit, the exchange is expected to close on 31 July 2026, though this remains a tentative date pending final regulatory and internal clearances.
With a market capitalisation of KRW4.26 trillion (USD2.87 billion), Netmarble ranks as the second-largest gaming entity on the Korea Composite Stock Price Index (KOSPI) market. Its 2025 annual revenue reached KRW2.84 trillion.
