Clover Games Declares Bankruptcy After Massive Debt Crunch
Clover Games, a South‑Korean developer known for titles such as Lord of Heroes, HeavenHells, and Ayakashi Rise, filed for bankruptcy on May 9, ending all game services. An audit released a few days later exposed the financial collapse that forced this decision.
Key Figures
| Item | 2024 | 2025 |
|---|---|---|
| Revenue | ₩13.03 billion | ₩7.54 billion |
| Expenses | ₩17.80 billion | ₩18.76 billion |
| Operating Loss | — | ₩11.22 billion |
| Net Loss | — | ₩12.31 billion |
| Cash from Ops | — | -₩10.19 billion |
| Assets | — | ₩5.17 billion |
| Liabilities | — | ₩52.66 billion |
| Equity | — | -₩47.48 billion |
Debt Breakdown
- Redeemable Convertible Preference Shares: ₩20.02 billion
- Derivative Liabilities: ₩16.34 billion
Short‑term debts exceeded current assets by ₩26.89 billion, confirming day‑to‑day insolvency.
Timeline of Events
- May 6: In‑app purchases for the three games were shut down to curb player loss.
- May 9, 11:00 p.m.: All servers for Lord of Heroes, HeavenHells, and Ayakashi Rise were shut down.
- Audit Result: Donghyun Accounting Corporation issued a disclaimer of opinion for the 2025 financial statements, citing uncertainty over continued operation.
- Final Bankruptcy: The company entered final proceedings as hopes for a February 2026 title release faded.
Leadership and Investment
Clover’s chief executive, Yoon Sung‑guk, invested over ₩3 billion of his own money into the company over three years, yet cash ran out before he could salvage operations.
Conclusion
The audit’s stark financial picture—negative equity, massive liabilities, and plummeting revenue—left Clover Games with no viable path forward. With its servers offline and bankruptcy finalized, the studio’s future appears uncertain.
