Naver Z has decided to sell its entire stake in Zep, a metaverse joint venture co-founded with game company Supercat, for 990 million won (approximately $720,000). The sale price falls far short of the cumulative 3.3 billion won (approximately $2.4 million) invested, signaling the company’s intent to divest non-core metaverse-related assets.

According to South Korea’s Financial Supervisory Service electronic disclosure system on the 24th, Naver Z will dispose of all 222,334 shares (22.01% stake) it holds in Zep for 990 million won. The disposal date is set for the 31st, and the counterparty was not specified in the filing. The company stated the purpose of the disposal as “stake liquidation for management rationalization.”

Zep was established in 2021 as a joint venture between Naver Z and Supercat with initial capital of 1 billion won (approximately $720,000). Naver Z contributed 400 million won (approximately $290,000) at the time of establishment to secure a 40% stake, and launched the eponymous 2D pixel-based metaverse platform “Zep.” The platform has expanded its reach by offering small-scale gathering and event support features, gaining traction among corporations, public institutions, and educational organizations.

Naver Z subsequently made additional capital contributions to support Zep’s business expansion: 1.6 billion won (approximately $1.2 million) in 2022 and 1.33 billion won (approximately $960,000) in April 2023. Including the initial founding capital, cumulative investment exceeds 3.33 billion won. However, in November 2022, Naver Z sold 66,600 shares to Supercat for 999 million won (approximately $720,000), reducing its stake from 40% to 26.68%. The stake was further diluted to 22.01% through subsequent external fundraising and equity changes.

The price trajectory is also notable. At the time of the 2023 additional acquisition, the per-share price was approximately 15,000 won (approximately $11) on a simple conversion basis, but dividing the current disposal price by the number of shares yields only about 4,453 won (approximately $3.2) per share. However, since the filing does not specify the valuation methodology, it would be premature to conclude that Zep’s enterprise value has declined.

Zep’s financial performance shows diverging trends between revenue and profitability. Revenue increased annually from 300 million won (approximately $220,000) in 2022 to 1.9 billion won (approximately $1.4 million) in 2023, 2.6 billion won (approximately $1.9 million) in 2024, and 3.3 billion won in 2025. However, the company recorded cumulative net losses of 8.9 billion won (approximately $6.4 million) over the three-year period from 2022 to 2024, before narrowly achieving profitability last year with a net profit of 100 million won (approximately $72,000).

Naver Z’s latest stake disposal aligns with its recent asset restructuring trajectory. The company fully divested its Versework stake in two tranches last year and this year, and also partially liquidated shares in Parable Entertainment and Shuberblock in 2024.

Zep is currently expanding its business scope from a 2D metaverse platform into the education sector. Its official website prominently features school spaces and “Zep Quiz,” and also offers AI-powered question generation and learning features. The website still states that Naver Z and Supercat jointly built Zep.

An IT industry source commented, “This filing concerns Naver Z liquidating its entire equity stake in the Zep corporate entity, and does not signify termination of the Zep service or a sale of the business.” However, the source added, “Given that Naver Z, which participated as a metaverse business partner from the founding stage, is now completely exiting the capital relationship, changes to Zep’s future governance structure and the business cooperation between the two companies are inevitable.”