UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 7)
Gravity Co., Ltd.
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(Name of Issuer)
Common Stock, Par Value Won 500 Per Share
Shares of Common Stock in the form of American Depository Shares*
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(Title of Class of Securities)
38911N107
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(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
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(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
August 25, 2006
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(Date of Event which Requires Filing of this Statement)
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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.
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* Each American Depository Share represents one-fourth of one share of common
stock, par value Won 500 per share (the "Common Stock").
SCHEDULE 13D
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CUSIP No. 38911N107 Page 2 of 8 Pages
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
Moon Capital Master Fund Ltd.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
OO
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
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NUMBER OF 7 SOLE VOTING POWER
SHARES -0-
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BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 566,502.75*
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EACH 9 SOLE DISPOSITIVE POWER
REPORTING -0-
------- ---------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH 566,502.75*
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
566,502.75*
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.2% of outstanding shares of Common Stock
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14 TYPE OF REPORTING PERSON
CO
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* 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
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CUSIP No. 38911N107 Page 3 of 8 Pages
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
Moon Capital Leveraged Master Fund Ltd.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
OO
--------- ---------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
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NUMBER OF 7 SOLE VOTING POWER
SHARES -0-
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BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 7,444.5*
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EACH 9 SOLE DISPOSITIVE POWER
REPORTING -0-
------- ---------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH 7,444.5*
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,444.5*
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.1% of outstanding shares of Common Stock
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14 TYPE OF REPORTING PERSON
CO
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* Represents 29,778 ADSs.
SCHEDULE 13D
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CUSIP No. 38911N107 Page 4 of 8 Pages
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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) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF 7 SOLE VOTING POWER
SHARES -0-
------- ---------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 573,947.25*
------- ---------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING -0-
------- ---------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH 573,947.25*
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
573,947.25*
--------- ---------------------------------------------------------------------
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
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14 TYPE OF REPORTING PERSON
PN
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* Includes 105,971 shares of Common Stock and 1,871,905 ADSs representing
467,976.25 shares of Common Stock.
SCHEDULE 13D
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CUSIP No. 38911N107 Page 5 of 8 Pages
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
JWM Capital LLC
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
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3 SEC USE ONLY
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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
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NUMBER OF 7 SOLE VOTING POWER
SHARES -0-
------- ---------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 573,947.25*
------- ---------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING -0-
------- ---------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH 573,947.25*
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
573,947.25*
--------- ---------------------------------------------------------------------
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 1,871,905 ADSs representing
467,976.25 shares of Common Stock.
SCHEDULE 13D
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CUSIP No. 38911N107 Page 6 of 8 Pages
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
John W. Moon
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
OO
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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
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NUMBER OF 7 SOLE VOTING POWER
SHARES -0-
------- ---------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 573,947.25*
------- ---------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING -0-
------- ---------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH 573,947.25*
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
573,947.25*
--------- ---------------------------------------------------------------------
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
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14 TYPE OF REPORTING PERSON
IN
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* Includes 105,971 shares of Common Stock and 1,871,905 ADSs representing
467,976.25 shares of Common Stock.
CUSIP NO. 38911N107 SCHEDULE 13D Page 7 of 8 Pages
This Amendment No. 7 (this "Amendment No. 7") 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"), Amendment No. 4 to Schedule 13D dated July 18, 2006
("Amendment No. 4"), Amendment No. 5 to Schedule 13D dated July 31, 2006
("Amendment No. 5") and Amendment No. 6 to Schedule 13D dated August 22, 2006
("Amendment No. 6") 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. 7 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, Amendment No. 5, Amendment No. 6 and/or the
Schedule 13D.
Item 4. Purpose of Transaction
Item 4 is hereby amended by adding the following at the end thereof:
On August 25, 2006 the Gravity Committee for the Fair Treatment of
Minority Shareholders (the "Committee") sent a letter to the chief executive
officer of the Company exercising the Committee's shareholder rights under
Korean law to demand that the Company initiate, on behalf of the shareholders
derivatively, a civil lawsuit against certain directors of the Company with
respect to certain interested party transactions and alleged misconduct.
CUSIP NO. 38911N107 SCHEDULE 13D Page 8 of 8 Pages
SIGNATURE
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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: August 29, 2006 /s/ John W. Moon
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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.