SNEAK PEEK
- Wemade’s $41 million tax debt challenges its Web3 ambitions in South Korea’s evolving crypto landscape.
- Despite tax hurdles, WEMIX tokens have surged 635%, with a market cap of $2.5 billion.
- Wemade’s strategic partnership with Whampoa Group strengthens its commitment to Web3 and blockchain ventures
South Korean gaming giant Wemade faces a significant financial hurdle. The company recently disclosed a massive tax debt of 53.7 billion won ($41 million). This news comes from their $100-million Web3 fund launch with Whampoa Group. Notably, the unpaid taxes relate to WEMIX tokens issued by its subsidiary, Wemade Tree.
The tax issue stems from activities between January 2019 and 2022. Wemade confirmed this in a Kosdaq filing on Jan. 3. They clarified that the debt combines penalties on both Wemade and Wemade Tree Co., Ltd. Consequently, the gaming firm is under pressure to resolve this tax matter swiftly.
Despite this challenge, Wemade remains committed to legal compliance. They plan to settle the tax debt by Feb. 29, 2024. Local reports indicate that tax authorities have levied a penalty of up to 50 billion won ($38 million). Hence, the company must navigate these financial obligations carefully.
However, Wemade’s blockchain endeavors continue to show promise. First issued in 2020, WEMIX tokens have surged by 635% since inception. They currently trade at $2.48, boasting a diluted market cap of $2.5 billion. Significantly, WEMIX is an Ethereum Virtual Machine-compatible protocol. It powers Wemade’s array of Web3 applications.
Moreover, South Korea’s regulatory landscape is evolving. The country, having banned initial coin offerings in 2017, is now reconsidering. Authorities may replace the ban with a 20% tax on crypto transaction profits. This potential shift could impact Wemade’s future operations and strategy.
Additionally, Wemade’s partnership with Whampoa Group reflects its strategic expansion. Launched on Dec. 22, 2023, their joint $100-million Web3 fund aims to bolster digital asset initiatives in the Middle East. As an ecosystem partner, Whampoa Digital will support Wemade’s Wemix Play Center in Dubai. This collaboration underscores Wemade’s commitment to its Web3 and blockchain ventures.
2- Whampoa Digital, the tech investment branch of the Singapore-based Whampoa Group family office, is partnering with South Korean gaming company Wemade. They aim to collaborate on a web3 fund totaling $100 million and pursue digital asset projects in the Middle East. pic.twitter.com/wKHwYS8QPk
— Spintop (@SpintopNetwork) December 22, 2023
Wemade navigates complex financial and regulatory landscapes. While addressing substantial tax liabilities, the company boldly advances in the burgeoning Web3 space. Its resilience and strategic partnerships signal a robust future despite current challenges.
