이 기사는 2021년 11월 09일 08시06분 thebell에 표출된 기사입니다

South Korea's Kakao Games is looking to enter the blockchain and non-fungible token (NFT) businesses.

Kakao Games’ co-CEOs, Namkoong Whon and Cho Kye-hyun recently released a letter to shareholders, which included its business status in the third quarter and plans for new businesses in the future, according to the company on Friday.

“We plan to enter the metaverse business through synergy with the tangible and intangible assets held by affiliate Neptune and various contents owned by the Kakao community,” Namkoong wrote in the letter. “We are preparing contents like games and virtual idols and an open platform with our own economic model.”

The plan reminds investors of Zepeto, a metaverse service operated by Naver Z, an affiliate of local internet giant Naver. The realization of its “own economic model” seems imply the company’s plan to introduce a token economy based on virtual assets.

Kakao Games has Friends Games, a developer of cryptocurrency BORA, as its subsidiary. This will enable Kakao Games to directly introduce NFT and virtual asset distribution system to its own service platform, including games. Friends Games is using the BORA platform to promote various blockchain-based businesses, including real-life blockchain projects, and movies and music streaming services using metaverse and NFT.

Attention is being paid to whether Kakao Games will start developing blockchain games and whether it will apply an economic structure based on NFT and virtual asset transactions to its mega hit “Odin: Valhalla Rising.”

Gaming industry sources said Odin is highly likely to become a blockchain-based game. “Mir 4,” released by Wemade, has introduced a unique “play-to-earn” system powered by blockchain technology that allows users to convert in-game resources into crypto assets. Market insiders said Kakao Games is expected to adopt the play-to-earn system ahead of Odin’s global launch as it already has blockchain platform BORA through Friends Games.

Kakao Games’ decision to acquire Lionheart Studio, a developer of Odin, through its European subsidiary also seems to be part of its plan to remove any legal problems in allowing online players to convert in-game assets into tradable crypto coins.

Under South Korean law, game companies are not allowed to service blockchain-based games with virtual asset trading system. Wemade issues its cryptocurrency Wemix token through its second-tier subsidiary in Singapore and its Mir4 with play-to-earn system is being serviced in the global market, excluding Korea.

“Considering that Kakao Games has acquired Lionheart Studio thought its European subsidiary, the company may actively pursue the NFT-related business,” said Ahn Jae-min, an analyst at NH Investment & Securities. “It will be possible to introduce NFT technology to Odin.” (Reporting by Sang-woo Seong)