1. What Happened? Webzen Holds IR Meeting Amidst Earnings Slump

On August 20, 2025, Webzen held an investor relations (IR) meeting to address its disappointing first-half performance and outline future business strategies. The company reported a significant decline in sales (-19.6%) and operating profit (-49.4%) year-over-year, primarily attributed to declining sales of its ‘MU’ IP-based games, delayed new releases, and intensified competition. Could this IR meeting alleviate investor concerns?

2. Why Did This Happen? Analyzing the Causes of Webzen’s Decline

The main factors contributing to Webzen’s recent struggles include:

  • • Over-reliance on ‘MU’ IP and Declining Sales: Although ‘MU’ IP-based games still contribute significantly to revenue, sales have been declining year-over-year.
  • • Delayed New Releases and Increased Competition: As the mobile games market becomes more competitive, delays in new game launches have weakened Webzen’s market position.
  • • Post-Pandemic Impact: The overall decline in gaming engagement following the COVID-19 pandemic has also contributed to the decline in performance.

3. What’s Next for Webzen? Key Takeaways from the IR Meeting and Future Outlook

Webzen addressed the following key points during the IR meeting:

  • • New Game Release Plans: Providing a concrete roadmap for new game releases is crucial for boosting investor confidence.
  • • IP Expansion Strategy: Announcements regarding new businesses utilizing the ‘MU’ IP and global expansion plans are expected.
  • • Profitability Improvement Measures: Addressing investor concerns requires presenting plans for cost optimization and new revenue streams.

Despite these efforts, Webzen’s recovery hinges on the success of its new games, strengthening its IP competitiveness, and efficient business operations.

4. What Should Investors Do? Investment Strategy Recommendations

Investors should carefully analyze the information presented during the IR meeting and evaluate the feasibility of Webzen’s proposed strategies. Focusing on the company’s long-term growth potential, rather than short-term stock fluctuations, is crucial. Key factors to consider include the potential success of new games, the continued competitiveness of the ‘MU’ IP, and the management team’s execution capabilities.