[Exclusive] Nerdystar, Key Figure Behind 'Exos Heroes', Goes Bankrupt... 'Stranded' Despite 68 Billion Won Valuation and Anticipation for New Game

Unable to overcome financial difficulties despite achieving 6 billion won in revenue and signing a publishing contract with Garena Court declares summary bankruptcy on the 7th... Release of new games such as '4GROUND9' uncertain

The game development company that garnered market expectations after being established by the core development team of 'Exos Heroes', Nerdystar Co., Ltd., eventually went bankrupt. The news has sent a major shock through the industry, as it comes right when the company was preparing to launch a new game after signing a global publishing contract with Singaporean game company Garena.

The Seoul Bankruptcy Court Division 11 declared Nerdystar Co., Ltd. bankrupt on January 7.

The court decided this bankruptcy as a 'summary bankruptcy'. A summary bankruptcy is a decision made when a debtor's property is recognized as being less than 500 million won, suggesting that Nerdystar's remaining assets are virtually depleted.

Nerdystar is a company established primarily by the core personnel who developed LINE Games' hit title 'Exos Heroes'. From its early days of establishment, the company was recognized for its technological prowess in securing both productivity and quality by actively incorporating artificial intelligence (AI) and machine learning technologies into game development.

In particular, in August 2022, it made headlines by attracting a 7.57 billion won investment from prominent investment firms such as Blocore, BITKRAFT Ventures, and FTX Ventures, being recognized with a corporate valuation of approximately 68.8 billion won.

Until recently, Nerdystar showed active business moves. It signed a global publishing contract with the giant Singaporean game distribution company Garena for its new mobile-PC multi-platform collectible RPG '4GROUND9'.

Its financial indicators were also showing an improving trend. Nerdystar, which recorded 2.6 billion won in revenue and 4.5 billion won in operating loss in 2022, saw its revenue more than double to 6 billion won and its deficit significantly reduced to an operating loss of 1.3 billion won as of 2024. However, it is analyzed that the company ultimately failed to overcome the liquidity crisis caused by sustained accumulated deficits and the burden of development costs for its next title.