UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 5)
Gravity Co., Ltd.
-------------------------------------------------------------
(Name of Issuer)
Common Stock, Par Value Won 500 Per Share
Shares of Common Stock in the form of American
Depository Shares*
--------------------------------------------------------------------------------
(Title of Class of Securities)
38911N107
---------------------------------------------------------
(CUSIP Number)
Moon Capital Master Fund Ltd.
c/o Moon Capital Management LP
499 Park Avenue, 8th Floor
New York, NY 10022
Attention: Andrew L. Wright, Esq.
General Counsel
(212) 652-4567
with a copy to:
Chadbourne & Parke LLP
30 Rockefeller Plaza
New York, NY 10112
Attention: Sey-Hyo Lee, Esq.
(212) 408-5100
--------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to Receive Notices
and Communications)
July 26, 2006
--------------------------------------------------------------------------------
(Date of Event which Requires Filing of this Statement)
--------------------------------------------------------------------------------
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of Sections 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check
the following box |X|
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 (the "Act") or otherwise subject to the liabilities of that section of the
Act but shall be subject to all other provisions of the Act.
_______________________
* Each American Depository Share represents one-fourth of one share of common
stock, par value Won 500 per share (the "Common Stock").
SCHEDULE 13D
------------------- -------------------
CUSIP No. 38911N107 Page 2 of 12 Pages
------------------- -------------------
--------- ----------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
Moon Capital Master Fund Ltd.
--------- ----------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
--------- ----------------------------------------------------------------------
3 SEC USE ONLY
--------- ----------------------------------------------------------------------
4 SOURCE OF FUNDS
OO
--------- ----------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
--------- ----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
------------------- ------- ----------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES -0-
------- ----------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 566,502.75*
------- ----------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
-0-
------- ----------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH
566,502.75*
------------------- ------- ----------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
566,502.75*
--------- ----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[ ]
--------- ----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.2% of outstanding shares of Common Stock
--------- ----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
--------- ----------------------------------------------------------------------
____________________
* Includes 105,971 shares of Common Stock and 1,842,127 American Depository
Shares ("ADSs") representing 460,531.75 shares of Common Stock.
SCHEDULE 13D
------------------- -------------------
CUSIP No. 38911N107 Page 3 of 12 Pages
------------------- -------------------
--------- ----------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
Moon Capital Leveraged Master Fund Ltd.
--------- ----------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
--------- ----------------------------------------------------------------------
3 SEC USE ONLY
--------- ----------------------------------------------------------------------
4 SOURCE OF FUNDS
OO
--------- ----------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
--------- ----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
------------------- ------- ----------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES -0-
------- ----------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 7,887.5*
------- ----------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
-0-
------- ----------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH
7,887.5*
------------------- ------- ----------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,887.5*
--------- ----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[ ]
--------- ----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.1% of outstanding shares of Common Stock
--------- ----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
--------- ----------------------------------------------------------------------
____________________
* Represents 31,550 ADSs.
SCHEDULE 13D
------------------- -------------------
CUSIP No. 38911N107 Page 4 of 12 Pages
------------------- -------------------
--------- ----------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
Moon Capital Management LP
--------- ----------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
--------- ----------------------------------------------------------------------
3 SEC USE ONLY
--------- ----------------------------------------------------------------------
4 SOURCE OF FUNDS
OO
--------- ----------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
--------- ----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
------------------- ------- ----------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES -0-
------- ----------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 574,390.25*
------- ----------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
-0-
------- ----------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH
574,390.25*
------------------- ------- ----------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
574,390.25*
--------- ----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[ ]
--------- ----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.3% of outstanding shares of Common Stock
--------- ----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
--------- ----------------------------------------------------------------------
____________________
* Includes 105,971 shares of Common Stock and 1,873,677 ADSs representing
468,419.25 shares of Common Stock.
SCHEDULE 13D
------------------- -------------------
CUSIP No. 38911N107 Page 5 of 12 Pages
------------------- -------------------
--------- ----------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
JWM Capital LLC
--------- ----------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
--------- ----------------------------------------------------------------------
3 SEC USE ONLY
--------- ----------------------------------------------------------------------
4 SOURCE OF FUNDS
OO
--------- ----------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
--------- ----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
------------------- ------- ----------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES -0-
------- ----------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 574,390.25*
------- ----------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
-0-
------- ----------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH
574,390.25*
------------------- ------- ----------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
574,390.25*
--------- ----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[ ]
--------- ----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.3% of outstanding shares of Common Stock
--------- ----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO
--------- ----------------------------------------------------------------------
____________________
* Includes 105,971 shares of Common Stock and 1,873,677 ADSs representing
468,419.25 shares of Common Stock.
SCHEDULE 13D
------------------- -------------------
CUSIP No. 38911N107 Page 6 of 12 Pages
------------------- -------------------
--------- ----------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
John W. Moon
--------- ----------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
--------- ----------------------------------------------------------------------
3 SEC USE ONLY
--------- ----------------------------------------------------------------------
4 SOURCE OF FUNDS
OO
--------- ----------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
--------- ----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
------------------- ------- ----------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES -0-
------- ----------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 574,390.25*
------- ----------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
-0-
------- ----------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH
574,390.25*
------------------- ------- ----------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
574,390.25*
--------- ----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[ ]
--------- ----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.3% of outstanding shares of Common Stock
--------- ----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
--------- ----------------------------------------------------------------------
____________________
* Includes 105,971 shares of Common Stock and 1,873,677 ADSs representing
468,419.25 shares of Common Stock.
SCHEDULE 13D
CUSIP No. 38911N107 Page 7 of 12 Pages
This Amendment No. 5 (this "Amendment No. 5") further amends and
supplements the Schedule 13D dated March 28, 2006 filed by Moon Capital Master
Fund Ltd., Moon Capital Management LP, JWM Capital LLC and Mr. John W. Moon (the
"Schedule 13D") in connection with the American Depository Shares of Gravity
Co., Ltd., as amended and supplemented by Amendment No. 1 to Schedule 13D dated
May 4, 2006 ("Amendment No. 1"), Amendment No. 2 to Schedule 13D dated May 23,
2006 ("Amendment No. 2"), Amendment No. 3 to Schedule 13D dated June 1, 2006
("Amendment No. 3") and Amendment No. 4 to Schedule 13D dated July 18, 2006
("Amendment No. 4") filed by Moon Capital Master Fund Ltd., Moon Capital
Leveraged Master Fund Ltd., Moon Capital Management LP, JWM Capital LLC and Mr.
John W. Moon (collectively, the "Reporting Persons") in connection with the
American Depository Shares and shares of common stock of Gravity Co., Ltd.
Capitalized terms used in this Amendment No. 5 and not otherwise defined herein
have the meanings assigned to such terms in Amendment No. 1, Amendment No. 2,
Amendment No. 3, Amendment No. 4 and/or the Schedule 13D.
Item 2. Identity and Background.
-----------------------
The second paragraph of Item 2 is hereby amended and restated in its
entirety as follows:
The Master Fund, the Leveraged Fund, the Investment Manager, the IMGP and
Mr. Moon are hereinafter sometimes collectively referred to as the "Reporting
Persons". Any disclosures made herein with respect to persons or entities other
than the Reporting Persons are made on information and belief. By virtue of the
communications among the Reporting Persons and representatives of Ramius Capital
Group, LLC and certain of its affiliates (collectively the "Ramius Entities")
and certain actions as to the matters more fully described in Item 4 and the
Sharing Agreement, dated as of March 28, 2006, between the Reporting Persons and
the Ramius Entities as to the sharing of certain information and expenses
attached as an exhibit to the Schedule 13D, the Reporting Persons may be deemed
to be a "group" with the Ramius Entities for purposes of the Securities Exchange
Act of 1934, as amended (the "Act"). On the basis of information provided to the
Reporting Persons by the Ramius Entities, the Reporting Persons believe that the
Ramius Entities are the beneficial owners of an aggregate of 1,882,702 ADSs and
105,973 shares of Common Stock representing in the aggregate approximately 8.3%
of the outstanding shares of Common Stock. The Reporting Persons expressly
disclaim beneficial ownership of securities held by any person or entity other
than the various accounts under the Reporting Persons' management and control.
The securities reported herein as being beneficially owned by the Reporting
Persons do not include any securities held by the Ramius Entities (including but
not limited to accounts or entities under its control) or any other person or
entity other than the various entities and accounts under the Reporting Persons'
management and control.
Item 5. Interest in Securities of the Issuer.
------------------------------------
Section A of Item 5 is hereby amended and supplemented as follows:
SCHEDULE 13D
CUSIP No. 38911N107 Page 8 of 12 Pages
A. As of the date hereof, the Reporting Persons have the following interests
in the securities of Gravity:
(a) Moon Capital Master Fund Ltd.
(i) Amount beneficially owned: 566,502.75*
The percentages used herein and in the rest of this Schedule 13D are
calculated based upon the 6,948,900 shares of Common Stock issued and
outstanding as of the date hereof, including through ADSs.
(ii) Percent of class: 8.2% of outstanding shares of Common Stock
(iii) Number of shares as to which such person has:
(a) Sole power to vote or direct the vote: -0-
(b) Shared power to vote or direct the vote: 566,502.75*
(c) Sole power to dispose or direct the disposition: -0-
(d) Shared power to dispose or direct the disposition: 566,502.75*
(b) Moon Capital Leveraged Master Fund Ltd.
(i) Amount beneficially owned 7,887.5**
(ii) Percent of class: 0.1% of outstanding shares of Common Stock
(iii) Number of shares as to which such person has:
(a) Sole power to vote or direct the vote: -0-
(b) Shared power to vote or direct the vote: 7,887.5**
(c) Sole power to dispose or direct the disposition: -0-
(d) Shared power to dispose or direct the disposition: 7,887.5**
_____________
* Includes 105,971 shares of Common Stock and 1,842,127 ADSs representing
460,531.75 shares of Common Stock.
** Represents 31,550 ADSs.
SCHEDULE 13D
CUSIP No. 38911N107 Page 9 of 12 Pages
(c) Moon Capital Management LP
(i) Amount beneficially owned: 574,390.25***
(ii) Percent of class: 8.3% of outstanding shares of Common Stock
(iii) Number of shares as to which such person has:
(a) Sole power to vote or direct the vote: -0-
(b) Shared power to vote or direct the vote: 574,390.25***
(c) Sole power to dispose or direct the disposition: -0-
(d) Shared power to dispose or direct the disposition: 574,390.25***
(d) JWM Capital LLC
(i) Amount beneficially owned: 574,390.25***
(ii) Percent of class: 8.3% of outstanding shares of Common Stock
(iii) Number of shares as to which such person has:
(a) Sole power to vote or direct the vote: -0-
(b) Shared power to vote or direct the vote: 574,390.25***
(c) Sole power to dispose or direct the disposition: -0-
(d) Shared power to dispose or direct the disposition: 574,390.25***
(e) Mr. John W. Moon
(i) Amount beneficially owned: 574,390.25***
(ii) Percent of class: 8.3% of Outstanding shares of Common Stock
(iii) Number of shares as to which such person has:
(a) Sole power to vote or direct the vote: -0-
(b) Shared power to vote or direct the vote: 574,390.25***
__________________
*** Includes 105,971 shares of Common Stock and 1,873,677 ADSs representing
468,419.25 shares of Common Stock.
SCHEDULE 13D
CUSIP No. 38911N107 Page 10 of 12 Pages
(c) Sole power to dispose or direct the disposition: -0-
(d) Shared power to dispose or direct the disposition: 574,390.25***
Section C of Item 5 is hereby supplemented as follows:
On July 18, 2006 the Master Fund purchased 9,860 ADSs on the open market at
a price of $6.65 per share.
On July 19, 2006 the Master Fund purchased 9,900 ADSs on the open market at
a price of $6.81 per share.
On July 21, 2006 the Master Fund purchased 9,900 ADSs on the open market at
a price of $6.59 per share.
On July 26, 2006 the Master Fund purchased 9,800 ADSs on the open market at
a price of $6.22 per share.
On July 18, 2006 the Leveraged Fund purchased 100 ADSs on the open market
at price of $6.65 per share.
On July 19, 2006 the Leveraged Fund purchased 100 ADSs on the open market
at a price of $6.81 per share.
On July 21, 2006 the Leveraged Fund purchased 100 ADSs on the open market
at a price of $6.59 per share.
On July 26, 2006 the Leveraged Fund purchased 200 ADSs on the open market
at a price of $6.22 per share.
Item 6. Contracts, Arrangements, Understandings or
Relationships with Respect to Securities of the Issuer.
------------------------------------------------------
Item 6 is hereby amended and supplemented by the addition of the
following:
Ramius Capital Group L.L.C., and Moon Capital Management LP, on
behalf of the Committee, have retained IRG Limited ("IRG") to provide financial
advisory services to the Committee with respect to the matters described in Item
4. Under the terms of the engagement, among other things, IRG will assist the
Committee with evaluating various strategies and alternatives with respect to
Gravity and the Ragnarok license and if a transaction results in the sale of
Gravity Common Stock or ADSs, the Committee will pay IRG a fee based upon the
sale price of Gravity Common Stock or ADSs sold by members of the Committee
during specified
__________________
*** Includes 105,971 shares of Common Stock and 1,873,677 ADSs representing
468,419.25 shares of Common Stock.
SCHEDULE 13D
CUSIP No. 38911N107 Page 11 of 12 Pages
time periods, although IRG will not be entitled to a fee if the sale price is
below a specified threshold. In addition, the Committee will pay IRG a retainer
fee.
Item 7. Material to be Filed as Exhibits.
--------------------------------
Exhibit 1. Joint Filing Agreement Pursuant to Rule 13d-1(k) is incorporated
by reference to Exhibit 1 to Amendment No. 2 to Schedule 13D.
Exhibit 2. Sharing Agreement dated as of March 28, 2006 between the
Reporting Persons and the Ramius Entities is incorporated by
reference to Exhibit 2 to Schedule 13D.
Exhibit 3. Press Release dated May 24, 2006 is incorporated by reference to
Exhibit 3 to Amendment No. 2 to Schedule 13D.
Exhibit 4. Press Release dated June 1, 2006 is incorporated by reference to
Exhibit 4 to Amendment No. 3 to Schedule 13D.
Exhibit 5. Press Release dated July 19, 2006 is incorporated by reference to
Exhibit 5 to Amendment No. 4 to Schedule 13D.
SCHEDULE 13D
CUSIP No. 38911N107 Page 12 of 12 Pages
SIGNATURE
---------
After reasonable inquiry and to the best of my knowledge and belief, I
hereby certify that the information set forth in this statement is true,
complete and correct.
Dated: July 31, 2006 /s/ John W. Moon
----------------------------------------
John W. Moon,
individually and as managing member of
JWM Capital LLC,
for itself and as the general partner of
Moon Capital Management LP,
for itself and as the investment manager of
Moon Capital Master Fund Ltd. and
Moon Capital Leveraged Master Fund Ltd.