[CEONEWS = Reporter Jo Sung-il] Do you know which program is being used to write this "CEO Exploration" article? As you might have guessed, it’s Hangul Word Processor (HWP). The subject of this CEO profile, Kim Taek-jin, is one of the developers of HWP, along with Lee Chan-jin, who gained attention for his marriage to actress Kim Hee-ae.
Kim Taek-jin is now the CEO of NCSoft, a game company. Opinions about him are often mixed, likely due to the simultaneous praise and criticism surrounding NCSoft’s games, such as Lineage.
Currently, NCSoft is facing a crisis with declining performance. As the CEO who has long relied on his proven formula for success, how will Kim Taek-jin overcome this challenge?
Regardless of the circumstances, Kim Taek-jin is undeniably a successful CEO and a key figure in South Korea’s venture success stories. Now, it’s time to observe his crisis management skills.
Market Responds Positively to NCSoft's Self-Rescue Measures Amid Crisis
The market currently diagnoses NCSoft as being trapped in a "slump in performance." In the third quarter of 2024, the company reported an operating loss of 14.3 billion KRW, marking its first loss in 12 years since the second quarter of 2012. While sales increased by 9% compared to the previous quarter, they fell by 5% compared to the same period last year.
In an industry where success is measured in numbers, the word "crisis" is unavoidable for NCSoft.
Recently, the company announced plans to establish four unlisted subsidiaries through a simple physical division. The goal, according to NCSoft, is to "maximize the creativity and innovation of the independent companies by establishing an autonomous game development studio system and enhancing AI research and development, thus laying the foundation for sustainable growth."
Additionally, NCSoft has undertaken an organizational restructuring. This includes discontinuing or scaling back certain development projects and support functions and implementing voluntary retirement measures under the rationale of focusing resources more efficiently.
Co-CEOs Kim Taek-jin and Park Byung-moo addressed the company's crisis in an internal letter to employees, in which they also issued an apology. The letter stated, "The company's financial performance has been continuously deteriorating, putting us at risk of becoming a chronically loss-making enterprise. The management fully accepts responsibility for these outcomes and offers a sincere apology to all employees."
The market has responded positively to these measures. The spin-offs are expected to bolster the independence and resilience of the new entities, while the cost-saving efforts are anticipated to improve operational efficiency.
Microsoft Regional Director
Can Kim Taek-jin, the IT legend and CEO of NCSoft, overcome the company's current crisis? Perhaps returning to the venture spirit that defined his early days could help him rise above these challenges.
Known for his frequent absences during his university years, Kim Taek-jin developed the PC communication service "Beodeulgol BBS" as a member of the Computer Research Club at Seoul National University. After graduating, Kim was encouraged by his senior, Lee Chan-jin, who had recognized his talent, to participate in the development of Hangul Word Processor (HWP).
HWP gained immense popularity and led to the founding of the company Hancom (Hangul and Computer).
However, instead of pursuing corporate management, Kim Taek-jin initially wanted to become a professor, leading him to enroll in graduate school. During this time, he founded Hanme Soft in a building owned by his father’s taxi company. There, he developed Hanme Hangul, a Korean word processing software that became a massive hit, even achieving the top spot in sales.
Kim fulfilled his military service obligations as an industrial technology specialist, working at Hyundai Electronics' Boston Research and Development Center. After completing his service, he officially joined Hyundai Electronics, where he was reportedly described by Chairman Chung Ju-yung as “a young man to watch.”
However, when his internet service project AmineNet became entangled in internal power struggles, Kim grew disillusioned and left the company, choosing to embark on the path of entrepreneurship. This led to the founding of NCSoft, a game development company.
In 1998, Kim was recognized as a Microsoft Regional Director. This prestigious role, held by only one or two individuals per country, involved receiving access to all Microsoft products for free, testing them, and providing feedback.
Through these achievements, Kim Taek-jin established himself as a highly skilled engineer recognized both domestically and internationally.
NCSoft’s Greatest Hit: The Long-Running Game Lineage
Kim Taek-jin’s success story would be incomplete without mentioning Lineage, the online multiplayer game (MUG) that became a phenomenon. The idea of strangers meeting online to play together was not just intriguing—it offered a sense of mystery and wonder, as though entering another world. The game's massive success seemed inevitable.
Originally, Lineage was being developed by a company called INET, founded by Song Jae-kyung and Lee Hee-sang. Facing difficulties during the IMF crisis, they sold the company to their university senior, Kim Taek-jin, who completed the game’s development under NCSoft and launched it into the market.
At one point, it was revealed that Lineage had borrowed item data from NetHack. However, since NetHack is an open-source game, the issue was quickly resolved.
Lineage, along with Blizzard’s StarCraft, shaped PC cafe culture and propelled South Korea’s gaming industry into the global top tier.
Even after more than 20 years, Lineage remains a cornerstone for NCSoft, not just as the game that built the company, but as its most critical revenue source today.
Kim Taek-jin is known for his perfectionism in gaming. As CEO, he sets high standards for games released to the market. Despite his executive role, he spends significant time with the development team, discussing ways to address and eliminate any limitations or disconnects in the gaming experience.
He is affectionately called "Taek-jin Hyung" (Brother Taek-jin). This nickname gained popularity in 2019 when Kim appeared in an ad for the release of Lineage 2M. In the ad, he responded to the question, “Did you stay up all night, Taek-jin Hyung?” with, “I woke up early and started working,” creating a viral moment.
On the flip side, the phrase “Taek-jin Hane” has emerged with negative connotations, referring to criticism that NCSoft games overly encourage gambling-like elements.
Regardless, Kim Taek-jin is undeniably a standout figure, a “remarkable person” in the truest sense of the phrase. While it remains to be seen whether NCSoft’s current challenges will turn into a quagmire or a passing ordeal, there is hope that “Taek-jin Hyung,” returning to his roots as a true developer, will transform this crisis into a stepping stone for another leap forward.
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