[COX] What’s Behind Netmarble’s 150 Billion Won Bet on Coway?…Defendin…

코웨이 로고 / 코웨이

As an activist fund knocked on the door for a second consecutive year to secure control of Coway, Netmarble resolved to make that door thicker—by putting on a lock worth 150 billion won to block access.

With the activist fund continuing its bid for management control of Coway for a second straight year, Netmarble has decided to reinforce its defenses by adding a 150 billion won “lock.”

On the 6th, after market close, Netmarble disclosed its plan to acquire additional shares in Coway. Over the course of a year, it will invest 150 billion won to purchase shares on the open market. Starting with an initial buy of 40 billion won worth of shares from May 7 to June 5, the company aims to raise its stake from the current 26% to the high-20% range. Netmarble stated, “This is a strategic investment that can simultaneously achieve two goals—stabilizing governance and enhancing financial soundness,” adding, “There will be absolutely no impact on our core gaming business.”

The financial logic is clear. Over the past three years, Netmarble has earned a combined 409.8 billion won from Coway—109.8 billion won in dividends and 300 billion won in equity method gains. That averages 136.6 billion won annually. If its stake approaches 30%, this figure is expected to grow further.

However, the context is more complex than pure financial reasoning. The activist fund Align Partners has attempted for two consecutive years to take control of Coway’s board, only to be blocked by Netmarble’s ownership wall. The offensive has not been abandoned. Activist funds typically accumulate shares while waiting for the next opportunity.

Approaching a 30% stake is the most direct way to block this trend. When the largest shareholder secures around 30%, the threshold of shares that external forces must gather to shake the board rises significantly. This explains why Netmarble is willing to spend 150 billion won just to increase its stake by a few percentage points.

This decision can be interpreted in two ways. One view sees it as a defensive move against Align Partners’ activism. The other sees it as a financial strategy to maximize dividends and equity gains by strengthening control over Coway, a key cash cow. Amid uncertainties in the gaming business, it reflects a judgment to more firmly secure stable revenue sources.

For Netmarble, there is no need to distinguish between the two. It is a structure that both generates profits and protects management control. Whether the 150 billion won is a shield or an investment is ultimately up to the market to decide.