In a recent turn of events, Wemade, a well-known South Korean gaming firm, has revealed a significant financial challenge, ultimately facing a tax liability of 53.7 billion won ($41 million), a revelation that comes on the heels of their partnership with Whampoa Group to establish a $100-million Web3 fund.
Unexpected Financial Burden for Wemade
This unexpected financial burden has its roots in the issuance of WEMIX tokens by Wemade Tree, a subsidiary of Wemade. The period in question spans from January 2019 to 2022. This amount, equating to roughly 10% of the company’s equity, was disclosed in a January 3rd filing with Kosdaq. Wemade has assured stakeholders that this tax debt will be settled by the legally stipulated deadline of February 29, 2024. However, there are reports of a substantial penalty, potentially up to 50 billion won ($38 million), being imposed by the tax authorities.
Strategic Expansion in the Middle East
Amid these challenges, Wemade has not slowed its expansion efforts. On December 22, 2023, the company launched a substantial $100-million Web3 fund in collaboration with Singapore-based Whampoa Group. This initiative aims to bolster digital asset endeavors, particularly in the Middle East. Whampoa Digital will serve as an ecosystem partner to Wemade’s Wemix Play Center located in the Dubai International Financial Centre Innovation Hub, as part of this joint venture.