Shares of Kakao Games experienced a significant surge on Friday, rising over 16%, and briefly hitting its daily upper limit. The increase follows a change in the company’s major shareholder to a special purpose corporation (SPC) funded by Japan’s Line Yahoo. The ownership change was officially completed, prompting investor reaction in the South Korean market. Analysts suggest the move is linked to strengthening ties between Kakao Games and Line Yahoo, particularly regarding the ongoing dispute with Naver over Line Yahoo’s governance. The SPC’s establishment was a condition set during negotiations to address Japanese security concerns. This restructuring aims to ensure continued operation of the popular Line Yahoo messaging app in Japan. Investors appear optimistic about the potential for future collaboration and stability resulting from the new ownership structure.