Webzen Scammed the Authors of Dragon Sword from Hound13 Studio Out of Money, and They Terminated the Contract with the Publisher
The Korean studio Hound13 has terminated its publishing contract with Webzen for the action RPG Dragon Sword due to incomplete payment of the guaranteed amount. According to MTN, the unpaid balance is around 1.6 billion won.
Hound13 states that Webzen cited concerns about the studio’s financial condition, but the developer emphasizes that it is precisely the underpayment that worsened the situation. Additionally, the studio points to weak marketing support, which caused the game's performance to be below expectations.
After the termination notice, the Dragon Sword service must continue for three months. During this time, Hound13 will decide whether to move to self-publishing or search for a new partner.
In 2024, Webzen invested about 30 billion won in the studio, acquiring a 25.64% stake and rights to the game. The guaranteed amount of 5 billion won was agreed upon separately.
If the conflict goes to court, the evaluation will cover not only the payment delay but also the quality of obligations fulfillment by both parties.