Seoul: Kakao Games Corp. announced during a shareholder meeting that no decision has been made regarding a potential merger with Line Games Corp., a game publishing company associated with the Japanese tech firm LY Corp. The company's chief financial officer (CFO) stated, "Nothing has been decided yet over a merger. But we could say there will be business partnerships," highlighting the mobile game SMiniz, which was developed under a partnership between Line Games and SM Entertainment Co.

According to Yonhap News Agency, market analysts have speculated about a possible merger between Kakao Games and Line Games, especially after the largest shareholder of Kakao Games shifted to LAAA Investment. This investment entity, backed by LY Corp. or Line Yahoo, became the largest shareholder last week. LAAA Investment has been involved in a capital increase and the issuance of convertible bonds worth a total of 300 billion won (US$200.4 million).

The CFO of Kakao Games further elaborated on the company's strategic plans to enter new markets, particularly in Southeast Asia, where Line has been establishing a strong presence in the mobile market. "We plan to target the new market in a manner similar to the past success experience of Kakao Games," the executive commented.

In addition, during the Monday meeting, the gaming company approved a resolution to appoint Kim Tae-hwan, vice president of Line Games, and Lee Si-woo, chief business officer of Kakao Games, as inside directors. Kim and Lee are set to assume the roles of co-chief executive officers of Kakao Games, pending approval by the board of directors.