Nexon Korea has borrowed 400 billion won from its subsidiary Neople, the JoongAng Ilbo exclusively reported on Sept. 23.
Nexon Korea borrowed 400 billion won from Neople to finance its operations and investment, according to the Financial Supervisory Service's electronic disclosure systems. It plans to make a lump sum repayment by Sept. 9, 2020.
Neople is a company founded by Hur Min, CEO of Wonder Holdings, which Nexon recently recruited. Nexon founder Kim Jung-ju bought it for 385.2 billion won in 2008.
Nexon Korea's large-scale borrowing of funds is due to the recent surge in demand for funds. First of all, Nexon Korea has decided to buy an 11.1 percent stake in Wonder Holdings to recruit Huh Min as its outside advisor. It cost 350 billion won.
Sales of Neopl, a subsidiary of Nexon Korea, reached 1.305 trillion won last year, already surpassing its parent company Nexon Korea's 946.8 billion won in sales.
Its operating profit amounts to 1.2157 trillion won. Its operating profit ratio is 93%. Nexon Korea, on the other hand, posted an operating loss of 12.8 billion won due to increased sales and management costs.