Kakao Games said on 25 March that LAAA Investment, a vehicle funded by Japan's LY Corporation, would become its largest shareholder by buying part of Kakao's stake and taking up KRW300bn of new shares and convertible bonds.
Why LY Corporation (via LAAA Investment) is buying Kakao Games Corp.
Kakao Games said the capital would strengthen its finances and fund global expansion, with Japan a priority market for collaboration with LY. Kakao has been selling non-core affiliates to free up investment for artificial intelligence; Kakao Games' revenue fell from nearly KRW1.15tn in 2022 to KRW465bn in 2025.
Deal terms and financing
The deal combined a third-party allotment of about KRW240bn, a KRW60bn convertible bond and the purchase of 18.1m existing shares from Kakao, whose price was not disclosed. Kakao said it would reinvest part of the proceeds and remain a strategic partner. The agreement included provisions to protect employment and existing working conditions.
Regulatory approvals and timing
Completion was initially expected in May. A KRX filing of 25 June 2026 showed LAAA Investment holding 35,566,086 shares, or 33.43% of voting shares, after paying for the new shares on 19 June, with its stake pledged against acquisition loans from Korea Investment & Securities (KIND disclosure, 25 June 2026).
Market context
Kakao's holding was expected to fall from about 37.5% to roughly 14%. The KRX filing shows LAAA Investment, a Seoul vehicle set up in 2026, is wholly owned by a private equity partnership, Petrico No.6, and that its acquisition loan facility totals KRW226.8bn.
