[People人] The Strategist Leading Kakao Games' 1 Trillion Won Club, Carrying Kakao's 10-Year Future

Namgung Hoon, Head of Kakao Future Initiative Center

"The time has come. The accumulated history of games must now expand into non-gaming areas." Namgung Hoon, who recently left Kakao Games, has taken on a new role as head of the Kakao Future Initiative Center. Having led the growth of Kakao Games, he now carries the responsibility for Kakao's next decade. After facing public criticism this year for its sprawling expansion, Kakao has identified Namgung as the key figure to devise global strategies and discover future growth engines.

From Taxi Driving and PC Bangs to a Sole Focus on Gaming

Namgung spent his childhood in Samoa and Hawaii, following his diplomat father, and graduated from Kyungbock High School and Sogang University with a degree in Business Administration. He is also known for his unique experience of working as a taxi driver during his university days. Taxi driving was a choice Namgung made to meet diverse people and gain experience as he dreamed of starting a business.

Namgung, considered a close aide to Kakao Chairman Kim Beom-su, joined Samsung SDS in 1997, where he first connected with Chairman Kim. After leaving Samsung SDS, he supported Kim’s PC bang business. Since co-founding ‘Hangame’ with Kim in 1999, his life has been devoted solely to gaming. After Hangame merged with Naver to become NHN, Namgung served as division head and head of Korean gaming operations. He later served as CEO of Wemade Entertainment and acquired Engine, the predecessor of Kakao Games. In December 2015, Engine, led by Namgung, merged with Daum Games, leading to the birth of Kakao Games in 2016.

The ‘Hit Strategist’ Leading the 2K Era

Namgung successfully led Kakao Games’ IPO and spearheaded the hit launch of the new title ‘Odin: Valhalla Rising,’ creating the ‘2K era’ (Kakao Games and Krafton) as a rising force in an industry dominated by the ‘3N’ (NCSoft, Nexon, Netmarble). Industry insiders credit Namgung’s strategist instincts for this achievement.

Previously, Kakao’s gaming business was a simple platform service offering casual games like puzzles. This changed when Namgung became CEO. He shifted Kakao Games’ business structure to focus on publishing (distribution and marketing), initiating bold structural reforms in Kakao’s gaming operations. The blockbuster games ‘Black Desert’ and ‘Battlegrounds’ were published by Kakao Games under his leadership. Once publishing capabilities were established, Namgung concentrated on strengthening development. In 2018, he launched the subsidiary Friends Games and acquired XL Games last year as a development subsidiary.

Recently, he also made a surprise acquisition of Lionheart Studio, the developer of ‘Odin.’ Odin outperformed NCSoft’s Lineage siblings (Lineage M and 2M) to become the top-grossing mobile game, playing a pivotal role in establishing the 2K era. Namgung’s strategy drove Kakao Games to its highest-ever revenue, with Q3 sales reaching 466.2 billion KRW and operating profit of 42.7 billion KRW. Kakao Games is expected to join the 1 trillion KRW revenue club this year.

Taking Charge of Kakao’s Future

Namgung is now fully committed to discovering new growth engines for Kakao’s future. His achievements in elevating Kakao Games to a global comprehensive game company significantly influenced his appointment as head of the Kakao Future Initiative Center. He will lead global market expansion efforts across all Kakao affiliates. Through his social media, he has mentioned several business models, notably B2C2C (business-to-consumer-to-consumer), combining business-to-consumer and consumer-to-consumer transactions. Namgung stated, "Games have long been B2C2C and UCC (user-created content)," and predicted that game companies’ business models will expand into digital content and commerce sectors. It is anticipated that Namgung will integrate B2C2C elements into various Kakao affiliates’ industries such as webtoons and shopping.

Namgung is known in the industry for his candid remarks, unlike other game company CEOs. When the AI chatbot ‘Iruda’ faced ethical controversies and social criticism last year, Namgung publicly expressed concern that regulations might stifle innovation and showed support for the startup behind Iruda. He also declared non-participation during the wave of salary increases in the gaming industry, demonstrating his principled stance. Given Kakao’s criticism for lacking a control tower, many expect Namgung to provide appropriate insights and advice. He expressed his ambition, saying, "Based on my experience, I will do my best to discover new businesses that will secure Kakao’s future and expand Kakao’s influence into a broader world."