NC Withdraws from 'AI Financial Business' After 3 Years Due to Poor Performance

Exterior view of NCSoft Pangyo R&D Center building

NCSoft is shutting down its artificial intelligence (AI) finance business, which it had pursued as a new venture, due to poor performance.

On the 18th, NC announced that on the 13th of this month, it held an organizational restructuring briefing for about 40 employees belonging to the AI finance organization, the 'Finance Biz Center,' and informed them of the business closure.

NC informed employees that it would offer a transfer placement program allowing them to move to other departments, and for those wishing to resign, it would provide severance pay equivalent to up to six months' salary as consolation.

Launched in 2020, the Finance Biz Center partnered with financial institutions to manage and operate assets using AI. Specifically, it conducted ▲ AI asset management ▲ AI investment strategy ▲ financial AI research projects but failed to produce significant results.

NC has recently begun to wind down underperforming businesses. In January, it sold the fandom platform business 'Universe' and in May sold all shares of its entertainment subsidiary 'Klap,' which operated Universe. Earlier this year, the North American subsidiary 'NCWest' reduced its workforce by 20%, mainly non-development personnel.

Additionally, in October, NC established the Change Management Committee to reorganize its organizational and decision-making systems and strengthen competitiveness, pursuing management efficiency. On the 11th of this month, it introduced a co-CEO system for the first time since its founding by recruiting Park Myung-moo, an investment expert and CEO of VIG Partners.

An NC official said, "Since early this year, we have been implementing a selection and concentration strategy, focusing on strengthening core competitiveness," adding, "There will be no artificial restructuring during the reorganization of some departments."

Meanwhile, NC announced on the same day that its in-house daycare center, 'Utnun Ddangkoek' (Smiling Peanut), will relaunch as an independent foundation after 10 years since its establishment.

Utnun Ddangkoek has been operated by childcare teachers hired as regular employees by NC, caring for about 300 children of NC employees within the childcare facilities set up inside the company building.

An NC official explained, "The foundation's establishment aims to guarantee independent and autonomous operation of the daycare center and to enhance professionalism and the quality of childcare," adding, "This is unrelated to management efficiency."