'Return to Management' Wemade's Park Kwan-ho to Also Serve as Chairman of the Board

Overcoming Crises Such as Judicial Risks Through Management Efficiency Improvements

Park Kwan-ho, the founder of Wemade who returned to the front lines of management after 12 years, will concurrently hold the positions of chairman of the board and CEO. This decision was made based on the judgment that swift decision-making is necessary to rebuild blockchain businesses such as WEMIX.

On the 29th, Wemade held its regular shareholders' meeting at Wemade Tower in Bundang-gu, Seongnam City, and approved the agenda to appoint Chairman Park as an inside director.

Earlier, on the 14th, Park was newly appointed as CEO following the resignation of Vice Chairman Jang Hyun-guk from the CEO position. At this shareholders' meeting, Park was reappointed as an inside director and will concurrently serve as CEO and chairman of the board going forward.

A company official stated, "There is no provision in the company’s articles of incorporation prohibiting the concurrent holding of the CEO and chairman of the board positions," adding, "Chairman Park will lead the company while performing these two roles."

It is uncommon in the domestic gaming industry for a founder to directly hold both the CEO and chairman of the board positions. Among listed companies, NCSoft founder Kim Taek-jin concurrently holds both roles. In the case of Netmarble, founder Bang Jun-hyuk serves as chairman of the board, while company management is handled by two co-CEOs (Kwon Young-sik and Kim Byung-kyu). Krafton also has founder Jang Byung-gyu as chairman of the board, with CEO Kim Chang-han overseeing management.

Park’s decision to hold both positions is interpreted as an effort to quickly overcome the crisis through management efficiency. Wemade has recorded losses for two consecutive years. Following an operating loss of 80.6 billion KRW in 2022, the company posted an operating loss of 112.5 billion KRW last year. Additionally, the company’s core blockchain business, including WEMIX, is currently facing legal risks. Recently, prosecutors summoned Wemade-related personnel for investigation regarding allegations of fraud in the issuance volume of WEMIX virtual assets. Wemade has yet to escape the allegations stemming from the 2022 controversy over WEMIX’s circulation volume.

There is also an interpretation that this move aims to reduce the excessive responsibilities that had been concentrated on Vice Chairman Jang while maximizing efficiency. Since taking on the CEO role at Wemade in 2014, Vice Chairman Jang has concurrently served as CEO of Wemade Max and has been involved in nearly all decision-making processes at Wemade. Amid this, the burden likely increased due to becoming a target of judicial investigations related to legal risks, which may have lowered management efficiency accordingly.

An industry insider said, "When operating a blockchain business, which still lacks sufficient institutional support, various variables can arise. From the company’s perspective, it is important to respond quickly when such variables occur," adding, "Chairman Park’s concurrent roles are intended to enable a swift response to the crisis."