KakaoGames said on Tuesday it will pursue strategic investment and restructure its shareholding to target global markets and strengthen future growth engines.

The transaction includes LAAA Investment, an investment vehicle funded by LY Corp (LineYahoo). LAAA Investment plans to acquire part of Kakao's stake in KakaoGames and participate in the purchase of new shares and convertible bonds to be issued by KakaoGames.

Once the deal is completed in May, LAAA Investment will become KakaoGames' largest shareholder. Kakao, the former largest shareholder, will continue strategic cooperation as the second-largest shareholder.

KakaoGames will secure about 300 billion won through the shareholding restructuring. Based on the funds, it will seek to strengthen competitiveness in global markets including Japan and lay the foundation for mid- to long-term growth. It plans to broaden the basis for collaboration with LineYahoo and gradually strengthen its competitiveness in global business.

Kakao will also reinvest part of the proceeds from the sale of existing shares to continue its partnership with KakaoGames. Kakao also stipulated in the contract employment stability for employees and the succession of existing working conditions.

A KakaoGames official said, "This investment and shareholding restructuring is a turning point that will raise global competitiveness." The official added, "Based on cooperation with partners including Kakao and LineYahoo, we will expand growth opportunities in global markets."