Nintendo of Korea has enacted a round of layoffs, but the company is not pulling out of the Korean market. This is according to reports from Gameple and GameMeca, which explain that all games currently on schedule to launch in South Korea will come out as planned, according to a translation by Kotaku.
The Nintendo of Korea team is being downsized substantially, however, as staff headcount now stands at just 10 employees. This is down from 60 staffers in January and a peak of 100 back in 2011. Since the start of 2016, Nintendo of Korea has reportedly been offering early retirement packages.
It's reported that Nintendo of Korea CEO Hiroyuki Fukuda is staying on, but the company overall is shifting from being a Nintendo subsidiary to the role of a distributor.
GameMeca reported that Nintendo president Tatsumi Kimishima made this decision after conducting a review of the company's branches around the world.
It's unknown exactly why Kimishima elected to downsize the branch, but a statement obtained by Gameple says it came down to the current "business environment."
Kotaku explains that while the DS and Wii were popular in Korea, there are a number of reasons why the branch might have been considered costly. The Wii U was never released in Korea, meaning Nintendo of Korea relied on the Wii and 3DS.
We will report back with new details on this story as they become available.