Kakao Games posted its seventh consecutive quarterly operating loss as revenue from existing titles declined and the company faced a gap in new game launches. The company is seeking a turnaround under its new co-CEO leadership structure and plans to launch its new title World of Dokkaebi in October.

Kakao Games said on Aug. 5 that it recorded consolidated revenue of 75 billion won and an operating loss of 23 billion won in the second quarter of 2026.

Revenue declined about 35% from a year earlier and approximately 10% from the previous quarter. The operating loss widened from the same period last year but narrowed by about 10% compared with the previous quarter.

By business segment, revenue from PC online games totaled about 22.3 billion won, up 51% from a year earlier. Compared with the previous quarter, however, it declined about 20%.

Mobile game revenue came to about 52.7 billion won, down 48% year over year and 4% from the previous quarter. The company said declining revenue from live-service games and the absence of major new game launches weighed on overall performance.

Kakao Games said it is reorganizing its game business under co-CEOs Kim Tae-hwan and Lee Si-woo. The company plans to review ongoing development projects and focus resources on launching key intellectual property (IP) titles that can drive earnings recovery.

Its first major release will be the mobile massively multiplayer online role-playing game (MMORPG) World of Dokkaebi. Kakao Games plans to begin pre-registration in August and is in the final stages of development ahead of an official launch in October.

Additional titles are scheduled to follow. Strategy-adventure role-playing game Dungeon Arise is slated for release later this year, while open-world zombie survival simulator God Save Birmingham and MMORPG Odin Q: Valkyrie's Call are expected to launch in early 2027.

The company is also expanding its game portfolio. Kakao Games has secured global publishing rights for PC MMORPG ArcheAge S: Strait of Freedom and pixel-art collectible action RPG Guardian Maiden. It also plans to collaborate with The Grimm Entertainment to develop and publish games based on popular comic and webtoon intellectual property.

Kakao Games said it will continue shareholder-return initiatives alongside its business restructuring efforts. Measures include the cancellation of 500,000 treasury shares, the introduction of a restricted stock unit (RSU) program for employees, the transfer of capital reserves to retained earnings, and purchases of company shares by senior management.

SK Telecom reported a sharp increase in second-quarter operating profit, driven by the absence of costs related to last year's USIM replacement program and continued cost-efficiency efforts. Revenue from its artificial intelligence (AI) data center business nearly doubled from a year earlier.

The company said on Aug. 5 that it posted consolidated revenue of 4.3591 trillion won and operating profit of 566 billion won for the second quarter of 2026. Revenue rose 0.5% from a year earlier, while operating profit increased 67.3%.

Net profit totaled 466 billion won, and earnings before interest, taxes, depreciation and amortization (EBITDA) rose 17% to 1.4423 trillion won. Capital expenditures (CAPEX) for the quarter were 487 billion won, down 23.3% from a year earlier.

On a standalone basis, SK Telecom recorded revenue of 3.117 trillion won, down 0.6% year over year. Operating profit climbed 70.5% to 427.7 billion won. Revenue at SK Broadband increased 3.6% to 1.1603 trillion won, supported by growth in its data center business, while operating profit rose 44.3% to 132.5 billion won.

Growth in the AI data center business stood out. Revenue from AI data centers reached 136.2 billion won in the second quarter, up 92.5% from 70.7 billion won a year earlier. Compared with 131.4 billion won in the previous quarter, revenue increased 3.6%.

The company said expanded data center operations and submarine cable business revenue drove the growth. AI business-to-business and business-to-consumer (B2B and B2C) revenue rose 24.5% year over year to 61.3 billion won and increased 36.2% from the previous quarter, aided by a growing backlog of AI cloud contracts.

SK Telecom established SK Hyper, a wholly owned subsidiary dedicated to AI data center business development, in July. The unit is responsible for securing data center sites and power resources, building and operating substations, constructing transmission and distribution infrastructure, and attracting customers.

The company's data center roadmap was also reaffirmed. SK Telecom plans to expand its current 137-megawatt data center footprint and begin opening AI data centers with a combined capacity of 5 gigawatts in phases starting in 2029. The company intends to expand capacity further to 15 gigawatts over time based on customer demand.

The company is also expanding its submarine cable business. SK Telecom launched the 10,500-kilometer SJC2 submarine cable system connecting Japan, South Korea, Hong Kong and Singapore in July 2025. The 12,500-kilometer E2A submarine cable system linking the United States, South Korea, Japan and Taiwan is targeted to enter service in 2029.

SK Telecom also declared a second-quarter dividend of 830 won per share, unchanged from the first quarter. The company will therefore pay a cash dividend of 830 won per share for a second consecutive quarter.

LG CNS has been selected to lead the artificial intelligence transformation planning project for 14 airports operated by Korea Airports Corporation (KAC), including Gimpo, Gimhae and Jeju airports. The project will establish the data and system architecture, governance framework and implementation roadmap required to introduce AI into airport operations.

LG CNS said on Aug. 5 that it won KAC's "AI Master Plan (ISMP) Establishment" project.

The initiative covers 14 airports nationwide operated by KAC. Incheon International Airport is not included because it is managed separately by Incheon International Airport Corporation.

Under the project, LG CNS will provide AI strategy consulting, design AI and data architectures, establish AI governance, conduct proof-of-concept testing for key initiatives and develop execution plans for future projects. The company plans to define AI services aimed at optimizing airport operations, improving customer services and strengthening safety management systems.

LG CNS did not disclose the contract value or project duration. However, according to KAC's tender documents, the project is valued at approximately 3 billion won and will run for 365 days from the start date.

Since last year, KAC has been pursuing 50 AI innovation initiatives across airport operations, customer service and safety management. LG CNS will evaluate the feasibility and commercial viability of these projects and develop priorities and phased investment plans.

One example under consideration is an agentic AI-based field safety management service. Under the concept, airport employees could verbally report incidents, after which AI would summarize the information, generate draft reports and recommend appropriate response procedures. The service is not currently in operation and remains a candidate model whose functionality, data integration requirements and technical feasibility will be assessed during the master-planning process.

A key objective of the project is to unify AI initiatives and data resources scattered across 14 airports into a common framework. Before AI is deployed in airport operations, facility management, passenger guidance and safety response systems, the project will establish data standards, access-control policies, security requirements and accountability frameworks for AI decision-making.

Industry observers expect the actual deployment of AI systems to be tendered separately after completion of the master plan and proof-of-concept phase. Through the project, LG CNS could position itself for future opportunities involving AI system implementation, cloud migration, operations and maintenance services.

The contract aligns with LG CNS's broader strategy of expanding its external AI transformation (AX) business.

During a recent earnings presentation, the company said it was broadening its AI portfolio beyond manufacturing and logistics into sectors including pharmaceuticals and biotechnology, airports and aviation, and defense and shipbuilding. The KAC project represents a concrete example of the company's expansion strategy in the airport and aviation sector translating into new business.

Analysts have increasingly pointed to growth from external customers and industry diversification as key drivers of LG CNS's future performance.

Sun Yoo-jin, an analyst at LS Securities, wrote in a report published on Aug. 3 that the company's growth base is becoming more diversified through overseas and non-affiliated customers.

Mirae Asset Securities analyst Lim Hee-seok also said in a report published on July 31 that rising demand for AI transformation among enterprises is likely to accelerate growth in LG CNS's cloud, AI and digital business services segments. He cited the company's expanding non-affiliate revenue base and diversified customer portfolio as key competitive strengths.