Related Party Transactions

6 Months Ended

Jun. 30, 2025

The Company’s Related Parties

NAVER and LY Corporation ("LY", formerly named Z Holdings Corporation) are the primary shareholders of the Parent. Related parties include NAVER's controlled affiliates, Company's management, Company directors, and stakeholders that hold significant influence over the Company. During the three and six months ended June 30, 2025 and 2024, the Company provided advertising services to NAVER group companies and LY giving rise to related party

receivables as of June 30, 2025, and December 31, 2024. Additionally, during the three and six months ended June 30, 2025 and 2024, the Company received brand-usage and outsourcing services from NAVER and LY, which resulted in the Company recognizing related party payables as of June 30, 2025 and December 31, 2024.

In addition to the transactions mentioned above, the Company has a history of renting facilities from its parent, NAVER. Related party operating lease expenses were $1.0 million and $1.5 million during the three months ended June 30, 2025 and 2024, respectively, and $1.6 million and $3.0 million during the six months ended June 30, 2025 and 2024, respectively, with related lease obligations of $12.8 million and $13.0 million as of June 30, 2025, and December 31, 2024, respectively (Refer to Note 5. Leases for additional information). The Company also subleases part of its office space to other related parties and the total other income generated from subleases was $0.1 million and $0.1 million for the three months ended June 30, 2025 and 2024, respectively, and $0.1 million and $0.2 million for the six months ended June 30, 2025 and 2024, respectively.

Related Party Transactions and Balances

The Company entered into the following significant related party transactions during the periods presented:


	Three Months Ended				Six Months Ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
	(in thousands of USD)				(in thousands of USD)
Revenue generated	$	18,278	$	20,880	$	35,991	$	34,167
Cost of revenue incurred	28,399		31,508		56,530		40,462
Marketing expenses incurred (cost reimbursed)	(2,870)		(1,036)		(5,451)		(2,941)
General and administrative expenses incurred	7,023		7,953		13,936		14,381
Other income, net	424		2,885		835		2,679

*all expenses are net amounts including reimbursement from its related parties

The Company had the following significant balances due from and due to related parties as of June 30, 2025 and December 31, 2024:


	As of
	June 30, 2025		December 31, 2024
	(in thousands of USD)
Due from related parties
Receivables	$	60,889	$	59,495
Other current assets	5,753		9,258
Other non-current assets	4,299		3,569
Loan receivables	30,430		28,503
Due to related parties
Current portion of operating lease liabilities	5,057		3,506
Operating lease liabilities	7,705		9,519

Accounts payable	17,739		17,173
Accrued expenses	7,001		5,562

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-URI https://asc.fasb.org/1943274/2147480990/946-20-50-2

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

+ Details

WEBTOON Entertainment Inc. 10-Q