Looking Closely
Doubts have risen over whether Value Invest Korea, which has decided to invest tens of billions of won into Blueside, a video game publisher and developer, has illegally gained investors. The public prosecutor's office has therefore begun an investigation into the company. Accordingly, there is concern that Blueside will run into problems developing new games.
According to industry sources on Sept. 21, the Seoul Southern District Public Prosecutor's office raided the head office of Value Invest Korea (VIK) in Seoul and the house of its CEO Lee Cheol on Sept. 16. In Feb., the Financial Supervisory Service (FSS) found illegality in the process of investment attraction of VIK, secured evidence, and notified the prosecution.
VIK, which was established in 2011, did not receive approval from the FSS for the investment business, and is not registered as a venture capital firm in the Small and Medium Business Administration. This is why the FSS regards VIK’s investment promotion activities as illegal. Illegal loans are activities that raise funds from unspecified individuals without approval, permission, registration, or reporting according to the Banking Act and the Savings Bank Act.
Gaming industry watchers are paying attention to how Blueside and its online game “Kingdom Under Fire 2,” still under development, will be affected by the investigation.