NHN to set up new units to bolster mobile business

NHN Corp., the operator of South Korea’s top portal Naver.com, said Wednesday it plans to set up two subsidiaries as part of efforts to strengthen its mobile business.

NHN said it has won board approval to inject 40 billion won ($37 million) each to “Camp Mobile” and “LINE Plus.”

Under the plan, the company will hold a 100 percent stake in Camp Mobile, which will pioneer NHN’s new mobile services.

NHN will also own a 40 percent stake in “LINE Plus,” which will support the company’s flagship mobile messenger service LINE that recently achieved 100 million downloads globally. NHN Japan will hold the remaining 60 percent stake.

The company, meanwhile, said it plans to spin off Hangame, a game unit it acquired in 2000, as part of efforts to boost competitiveness.

NHN said it plans to announce a detailed schedule for the spin-off in the future, without elaborating further.

The company is set to announce its fourth-quarter earnings on Thursday. (Yonhap News)