SEOUL, June 16 (AJP) – A South Korean gaming industry association has voiced strong opposition to a reported bid by Chinese tech giant Tencent to acquire Nexon, one of South Korea’s largest game developers. The association described the potential deal as a threat to the nation’s “industrial sovereignty” and called on the government to intervene to protect the country’s digital economy amidst Tencent’s Reported Nexon Takeover Controversy.
In a statement released on Monday, the Korea Game Society condemned what it referred to as “systematic domination attempts” by foreign entities seeking to gain control over strategic sectors of South Korea’s economy. The group argued that the acquisition, if realized, would represent more than a corporate transaction—it could undermine national autonomy in the digital economy, emphasized by the Tencent’s Reported Nexon Takeover Controversy.
“This matter represents a national security issue that the government cannot remain neutral about,” the association stated. “This is not merely a transaction between private companies, but an organized attempt to control the Republic of Korea’s key industries.”
The Reported Bid: What We Know
The controversy stems from an article on June 13, which cited unnamed sources claiming that Tencent Holdings was exploring a potential $15 billion acquisition of Nexon. They had approached the family of the late Kim Jung-ju, Nexon’s founder, to discuss a possible deal. This exploration further fuels the Tencent’s Reported Nexon Takeover Controversy.
If successful, the acquisition would significantly bolster Tencent’s global gaming portfolio, adding Nexon’s iconic franchises—such as MapleStory and Dungeon & Fighter —to its already extensive lineup. Nexon, founded in 1994, is a cornerstone of South Korea’s gaming industry and a major contributor to the country’s cultural exports.
However, neither Tencent nor NXC, Nexon’s holding company, has publicly confirmed the reports. In a brief statement to AJP, Nexon said it had “no official position or confirmable information” on the matter. Separately, a Tencent representative, speaking anonymously to a Chinese technology outlet on June 13, reportedly denied that the company was engaged in acquisition talks with Kim Jung-ju’s family or reviewing any deal involving Nexon.
Calls for Government Intervention
The Korea Game Society has urged the South Korean government to take decisive action to safeguard the gaming industry. Specifically, the group called for the video game sector to be formally classified as a “national strategic sector,” a designation that would enable stricter regulatory oversight and legal safeguards to prevent foreign takeovers of domestic firms.
The association’s concerns reflect broader anxieties about foreign influence in South Korea’s high-tech industries. Gaming is not only a significant economic driver but also a key component of the country’s soft power, with games like MapleStory and Dungeon & Fighter achieving global recognition.
By labeling the reported bid as a national security issue, the association is appealing to the government to prioritize protecting local industries from what it perceives as external threats, exemplified by Tencent’s Reported Nexon Takeover Controversy.
Why Tencent’s Interest in Nexon Matters
For Tencent, acquiring Nexon would be a strategic move to strengthen its dominance in the global gaming market. Already the world’s largest gaming company by revenue, Tencent has stakes in numerous high-profile game developers, including Riot Games, Epic Games, and Supercell. Adding Nexon to its portfolio would further solidify its position as a leader in the industry.
However, the reported bid has sparked fears among South Korean stakeholders that such a deal could lead to the erosion of local control over key intellectual properties and technologies. Critics argue that allowing a foreign entity like Tencent to acquire Nexon could weaken South Korea’s influence in the global gaming landscape and compromise its industrial sovereignty.
Broader Implications for South Korea’s Gaming Industry
The controversy highlights the growing tension between globalization and national interests in South Korea’s gaming industry. While international partnerships can bring capital and expertise, they also raise concerns about the long-term impact on domestic innovation and cultural identity.
The gaming sector is particularly sensitive because it plays a dual role as both an economic powerhouse and a cultural ambassador. South Korea’s games are celebrated worldwide, contributing to the country’s reputation as a hub of technological and creative excellence. Any perceived threat to this status is likely to provoke strong reactions from industry groups and the public alike, as seen in Tencent’s Reported Nexon Takeover Controversy.
