The South Korean professional League of Legends league (LCK) is facing significant financial difficulties. According to DealSite, the league has incurred losses of 42.7 billion won over the past three years, with a record 28.5 billion lost in 2024 alone.

Causes of the Financial Crisis
The financial problems of the LCK are deepening amid a sharp decline in revenue. In 2022, revenue was 27.9 billion won, but by 2024, it had nearly tripled down to 11.4 billion. Experts cite high fixed costs for hosting tournaments, venue rentals, and broadcast organization as primary reasons.

The franchise system, introduced in 2021, which involves sharing a portion of the revenue with teams, adds additional pressure. The situation worsened with the loss of a broadcasting contract in China — Huya declined to renew their partnership in 2024.

In response to the crisis, the league reduced franchise entry fees by 33%, equivalent to 33 billion won, and allocated additional financial assistance of 13 billion won to support the teams.

Experts urge LCK management to seek new monetization paths and implement a more open and flexible business model. This is necessary to maintain the stability of not only the league itself but also the entire South Korean esports ecosystem, which was once considered one of the most successful in the world.