IAC 2025 2H Final Project Presentation
November 29, 2025
Dongki Kim
Seunghyuk Kang
Company overview
Krafton at a Glance
I
Krafton is a global gaming powerhouse transforming its flagship IP success into a diversified, multi-genre portfolio
driving sustained growth
Company overview
Financials overview
⚫ Established in 2007, Krafton is the largest and fastest-growing video game
producers in South Korea, recognized for its strong development capabilities
⚫ Market capitalization of KRW 12.2trn1, positioning Krafton as the largest listed
video game company in South Korea
⚫ Diversified portfolio of 10+ flagship titles across mobile, PC, and console
platforms, spanning multiple genres and target audiences
 Vertically integrated across developing and publishing, enabling full control
over the value chain and hence enhanced profitability
 Flagship franchise Player Unknown ranked #2 in the Steam FPS category,
boasting a YoY growth rate of 12%2
⚫ Active pipeline of 11 new titles under development, aimed at expanding global
publishing reach and achieving KRW 7trn internal target revenue by 2029E
Product overview
Product
(KRW bn, %)
2020
2021
2022
2023
2024
3Q253
Revenue
1,670
1,885
1,854
1,911
2,710
3,024
% growth
53.6%
12.9%
(1.7%)
3.1%
41.8%
5.3%
796
704
856
876
1,289
1,389
47.7%
37.3%
46.2%
45.9%
47.6%
45.9%
774
651
752
768
1,182
1,267
46.3%
34.5%
40.5%
40.2%
43.6%
41.9%
EBITDA
% margin
EBIT
% margin
Net income
556
520
500
594
1,303
1,248
% margin
33.3%
27.6%
27.0%
31.1%
48.1%
24.8%
Total asset
1,719
5,718
6,038
6,440
7,919
9,083
Net debt
(632)
(2,846)
(417)
(517)
(384)
(140)
Total equity
1,214
4,608
5,116
5,559
6,829
7,850
Revenue breakdown
Flagship titles
Breakdown by platform
Mobile
Shooting
PC
Console
Others
1.4% 1.2%
Adventure
Role playing (“RPG”)
Source: Company filings, Company website, IR report
Note: 1 As of 24 Nov 2025, 2 As of 3Q25, 3 As of LTM 3Q25
Asia
EU & NA
Korea
Others
8.1% 0.8%
Simulation
Key revenue drivers
Breakdown by geography
8.8%
37.3%
LTM
3Q25
60.2%
LTM
3Q25
82.3%
4
Company overview
Key milestone
I
Krafton has delivered a robust 65.0% revenue CAGR by scaling its original creative IPs and is now positioned to
unlock further value through global franchise expansion
Fastest-growing video game producer in Korea
CAGR 17.7%
65.0%
Franchise IP
Revenue CAGR from 2011 to LTM 3Q25
CAGR 170.2%
2023
⚫ Established 3 new studios
Scale up creative
2024
2017
⚫ Released early access for battle royal game,
PUBG
Original creative
3.5
Revenue (KRW trn)
3.0
2.5
2.0
2007
2018
⚫ Established Bluehole Studio
⚫ Rebranded from Bluehole Studio to Krafton
2011
2021
⚫ Released PC MMORPG title TERA
⚫ IPO on the Korea exchange (KOSPI)
⚫ Established inZOI Studio and
Tango Gameworks
2025
⚫ Acquired ADK Holdings and
Eleventh Hour Games
2012
2.7
⚫ Launched TERA in NA and EU markets
2015
1.7
⚫ Ginno games (later renamed as “PUBG Studio”) joined Bluehole
1.5
1.1
1.1
2018
2019
1.9
1.9
1.9
2021
2022
2023
3.0
1.0
0.3
0.5
0.0
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2020
2024
LTM
3Q25
Acquired
Source: Company filings, IR report
5
Company overview
Corporate structure
I
Backed by a dynamic governance model, Krafton strategically expands its global IP portfolio via 15+ established
and acquired studios, underpinned by a centralized HQ driving integration and sustained value creation
Corporate structure1
Integration of divisions
Byungkyu Jang 15.1%
63.0% Others
Affiliates 8.0%
Image Frame Investment 14.0%
▪
▪
▪
▪
NPS 7.0%
Treasury 5.8%
BlackRock 2.8%
Vanguard 2.5%
1. Chairman project
1
22. Krafton family
Formulates strategic M&A and
studio establishment
decisions to strengthen longterm growth potential
Comprises 15+ studios, each
independently developing
unique titles across genres to
expand Krafton’s creative reach
4
4. IP franchise
2
Chairman
Krafton HQ
Krafton family
3
Chairman support
1
Global publishing
KR studios
IP franchise
Global studios
Corporate support
2nd party studios
1
2
4
Drives further monetization
through IP expansion into
media, merchandise, and new
verticals, optimizing long-term
franchise value
3
33. Global publishing
Manages marketing,
publishing, and distribution
of key titles to maximize global
exposure and recurring
revenue streams
Key personnel
4
Chairman project
Core functions
M&A
Corporate projects
Publishing & support
Developing
Executive supports
Source: Company filings, IR report, ESG report
Note: 1 As of 3Q25
Beyond the game
Byungkyu Jang
Founder / chairman
Changhan Kim
Chief executive officer
⚫ Founded and serves as chairman
of Bluehole Studio, which was
later rebranded as Krafton
(2017-current)
⚫ Served as CEO of PUBG Studio,
leading the development of
Krafton’s flagship title, PUBG
(2017-2020)
⚫ Oversees strategic IP cultivation
and global M&A initiatives
⚫ Supervises publishing,
development, and support
functions across Krafton’s studios
6
Company overview
Product overview
I
Leveraging strong in-house studios, Krafton is growing its global footprint and second-party publishing partnerships
while actively investing in opportunities to extend beyond gaming
Product lineup by key studios
Krafton family
KR studio
Major & upcoming IPs
Target market
2017
2021
Pending
2014
2021
2026
Survival
2024
2025
Pending
Pending1
Platform
2022
2025
Pending
Shooter
9+ studios,
Established presence
across key markets
Global studio
5+ studios,
Specializing in
franchise IPs
Beyond the game
2 studios,
Pioneering crossmedia expansion
2nd party studio
Life simulation
Multiple licenses,
Expanding Krafton’s
ecosystem
Source: IR report, ESG report
7
Company overview
PUBG: Player’s Unknown Battlegrounds
I
PUBG stands as a leading global gaming franchise with a robust and expanding ecosystem, delivering strong user
acquisition, retention, and monetization while driving continued market expansion
PUBG: Battlegrounds overview
Versions
Free-To-Play (FTP) battle royale game
PUBG
Thrilling game of elimination where 100 players fight until
the last man standing
Original PUBG line
⚫ Flagship title and first installment of the franchise, initially
launched on PC and later expanded to console
⚫ Launched in Dec 2017 as a mode in the military
sandbox game ARMA 3
⚫ Served as Krafton’s primary early growth engine,
establishing global presence and battle-royale leadership
⚫ Achieved explosive popularity, surpassing KRW
15mm+ revenue in the initial week and topping initial
monthly gross revenue of KRW 140mm+
PUBG Mobile
⚫ Developed and published by Chinese company Tencent
under license from Krafton
⚫ Attracts a broad user base with 10-15 distinct game
modes, strengthening engagement across play styles
⚫ Krafton retains publishing rights in key regions, including
Korea and India
 Ranges from classic last man standing to team
deathmatch or training modes
⚫ Available in 165+ countries and now an established
global franchise with revenue stability; awarded
Steam Platinum for 8 consecutive years
BGMI1
Localized version of PUBG M specific to Indian market
⚫ Published solely by Krafton following the suspension of
PUBG Mobile in India amid geopolitical2 tensions in 2020
⚫ Mobile version exceeded PC revenue in 2021 and has
become a dominant revenue driver for Krafton
PC / console
Mobile
Adapted gameplay of original PUBG with mobile features
⚫ PUBG’s free-to-win business model optimized for India’s
market dynamics, handling conservative user spending
User acquisition
User retention
170mm+
2nd
Total downloads
FPS ranking3
700k+
1.1bn+
2nd
100mm+
Total downloads
FPS ranking4
MAU
1
MAU
Monetization
50k+
KRW 950mm+
KRW 3.1k
DAU
Revenue
ARPCU
4.3/5
KRW 1.6bn+
KRW 94.8k
Revenue
ARPPU
Average review
Source: Company filings, IR report, ESG report, Steam DB
Note: 1 Battlegrounds Mobile India, 2 PUBG M in India also published by Tencent before the India-China political tension including aggressive melee, face-offs, and skirmishes, 3 Steam, 4 Playstore
8
Company overview
Business model overview
I
Krafton operates a hybrid monetization model combining free-to-play and buy-to-play titles, driving recurring
revenue through simultaneously capturing large user base while receiving reliable upfront payments
Game titles sold in platforms
Free to play (“F2P”)
Buy to play (“B2P”)
Q1
Free to access without cost barrier
Access barrier of initial purchase
Relies on large active user and sustained engagement to monetize through player spending
small recurring amounts (microtransaction)
Targets a smaller but more committed audience
Pay to win (“P2W”)
Free to win (“F2W”)
P2
PUBG transitioned from B2P to F2P
in 2022 to broaden its customer base
Competitive advantage via purchase
Microtransactions for personalization
Upfront entry price
Gamers access enhanced capability or advantage
via targeted purchases
Small but reoccurring purchases that do not impact
gameplay ability but customize gaming experience
KRW KRW KRW KRW KRW KRW
79,000 56,000 50,000 45,000 35,000 27,000
In-game purchase
Customers purchase in-game cosmetics such
as player skins and accessories
Base game sale
Krafton does not own P2W titles
Strategy emphasizes risk mitigation and
brand protection to preserve user trust
In-game purchase
Customers purchase advantageous items such
as exclusive weapons
Source: Company filings, IR report, Steam
Note: 1 Quantity of game titles, 2 Price of game titles
Downloadable
contents sale
9
Industry overview
Historical development
II
The gaming industry has consistently evolved through major technological shifts and is now positioned for a new
wave of growth driven by advances in AI and VR
1
Video game industry market size (KRW trn)
⚫ Increased PC distribution enabled rapid growth
in indie game development
7.7% (5.9%)
2012-2024 revenue CAGR (2025E-2029E)
1
2
⚫ Expanded market diversity attracted a broader
base of consumers
3
351
332
2
314
279
264
246
258
194
170
138
108
139
⚫ F2P business models expanded reach and drove
strong revenue through microtransactions
262
227
146
Smartphone penetration
⚫ Smartphone commercialization lowered entry
barriers and funneled significant user volume
297
189
Rise of indie games
3
COVID-19 and technological innovation
⚫ COVID-19 accelerated gaming as a primary athome hobby, driving record user growth
⚫ Emerging technologies such as AI and VR are
opening new avenues for future industry growth
118
South Korea
⚫ Unlike the global market, online games1 drove
South Korea’s growth from the early 2000s
⚫ Deep cultural integration drives rapid trend
adoption and fuels sustained market growth
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E 2026E 2027E 2028E 2029E
Source: Euromonitor
Note: 1 Genres such as Multiplayer Online Role Playing Game (MMORPG), Real Time Strategy (RTS), First Person Shooting (FPS)
⚫ Saw 33.4% YoY revenue growth after COVID-19,
driven by e-sports and relaxed regulations
11
Industry overview
Value chain: verticals and players
II
Revenue flows back to developers after platform and publisher deductions, incentivizing publishers to internalize
development and distribute directly to maximize returns
Revenue share1
30%
Revenue share1
22%
Revenue share1
48%
Source: Google support, Apple developers, Steam community, Reuters, Grandview Research, Fortune Business Insights
Note: 1 % of revenue from consumers who purchased the games earned by developer, publisher and platform each
12
Industry overview
Value chain: key trends
II
Integration of development and publishing, combined with direct distribution, drives revenue growth and enhances
margins across gaming companies
Transition from simple publishing into simultaneous 1PP
48%
22%
30%
Transition from value chain intermediation into B2C disintermediation
Revenue flow 1
48%
1PP
22%
30%
Revenue flow1
Publisher
Platform
Consumer
B2C
Developer
Publisher
Platform
Consumer
Developer
+
First party
publishing
1PP creates synergy
Creating
Marketing
Updating
Releasing
Testing
Localizing
⚫ Stronger franchise IP
due to full creative
control
71
36
2020
50
2021
49
2022
52
2023
⚫ Removing
intermediaries
increases revenue
share
⚫ Faster decision-making
on marketing strategies
and release timing
Number of first party publishing hit games
100
80
60
40
20
-
B2C increases revenue
⚫ Flexibility to implement
own monetization
features
% of top 50 mobile games with B2C store
Signals shift toward
exclusive content
developed and published
by the same company
2024
Source: Research Gate journals, Bain insight report, Invest Game marketing report
Note: 1 Based on value chain’s revenue stream
50%
40%
30%
20%
10%
-
44%
33%
24%
25%
2021
2022
13%
2020
2023
Indicates studios gaining
more control over
distribution and revenue
streams
2024
13
Industry overview
Market analysis: platform
II
Amid platform-level structural shifts, mobile’s accelerated rise, capturing ~45% of the market, has emerged as the
primary engine driving industry expansion
Key drivers
Game industry revenue distribution by platform (KRW trn)
Mobile
PC1
Console
Arcade
316
325
430.9%2 surge in smartphone
303
288
288
users led to 27.7% YoY revenue
growth3 in entire industry
293
In app advertisement4
Smartphone ownership
(KRW trn)
303
233
Purchase
Accessibility prioritization
233
143
127
200
175
127
129
150
135
COVID-19 accelerated adoption of
easily accessible gaming formats,
increasing user engagement
2019
2024
Upcoming cross platform title
Dec 2025
117
80
CAGR
Advertising
271
219
+10.7%
Alternative revenue stream
93
Revamped monetization
strategies aids revenue recovery
after the pandemic slowdown
69
PC titles released in mobile via
technological advancements
53
56
62
68
68
84
87
84
89
91
96
96
New hardware
Hardware breakthroughs
Jun 2025
The PS4 launch in 2020 drove
19.2% YoY growth5, with new
hardware set to fuel growth
2026E 15mm unit sales
45
41
43
25
26
27
2016
2017
2018
44
49
49
50
51
52
46
49
28
22
25
27
27
27
27
28
2019
2020
2021
2022
2023
2024
2025E
2026E
Cloud services
Flexible platform
Broad hardware accessibility
supports PC demand as cloud
gaming drives further expansion
Source: Korea Creative Content Agency (KOCCA), Nintendo IR report, BCG report, PwC report
Note: 1 PC includes online and computer games, 2 2010-2016 smartphone user increase, 3 YoY 2015-2016, 4 2019-2024 in app advertisement revenue, 5 YoY 2019-2020
Ease hardware restraints
14
Industry overview
Market trend: platform
II
Cross-play enables gaming companies to unlock synergistic value by integrating multiple platforms, expanding
user reach, and maximizing revenue across diverse ecosystems
Integration of platforms
Title A
Distinction of platform
Expansion opportunities
Drivers
Single platform
Customer expansion in platforms
Cross-play demand1 (%)
PC
Larger TAM
User A
64%
48%
46%
Korea
USA
Japan
72%
Title B
Title C
Console
Mobile
User B
User C
Users who use more
than 1 platform (%)
High cross-play demand signals headroom for
growth across platforms and regions.
Multi platform
Maximize revenue
Title A
PC
User A
Title B
Console
User B
Title C
Mobile
User C
Cross platform
Title A
PC
Time spent per number of platform
4.2hr
11.3hr
1 platform
3 platform
Share of paying
users increases,
81%2
Potential
revenue+
Emerging integrative platform: Cloud service platform
User A
Purchase
Cloud Service
Online Server
Estimated ARPU3 (KRW '000)
102
61
49
Mobile
Console
User B
Streamed
to devices
Title C
Mobile
User C
Cloud service resolves hardware constraints, enabling stronger cross-play capabilities
Source: KOCCA, NewZoo report
Note: 1 Consumer expectation on implementing cross play, 2 % of paying tri-platform users, 3 ARPU estimated using total users and total revenue 2025E
Console
Integrating high ARPU console titles across
platforms enhances revenue potential
Cloud service market size (KRW bn)
Devices
Title B
PC
27
2019
663
2024
1,342
2028E
Further infrastructure and network development
will stimulate cloud gaming growth
15
Industry overview
Market analysis: genre
II
Genre shifts driven by UGC and AI adoption are accelerating growth in shooter and RPG genres, outpacing the
popularity decline of the adventure segment
Key drivers
Game industry revenue distribution1 by platform (KRW trn)
Shooter
Adventure
RPG
Others
AI-leveraged matching
303
288
288
293
Skill-based matching enhances
user engagement and satisfaction
271
(20243) AI skill matching:
Helldivers 2
Creative platform (UGC2)
68
233
101
95
219
Players build and sell tailored
modes and custom gameplays
113
Seasonal content
200
175
Collaboration with major
franchises prompts user influx
76
(2023) Creative platform:
Fortnite Creative 2.0
49
69
67
AI-leveraged NPCs
90
84
71
67
AI-driven NPCs create
personalized gameplay
(2023) AI-made personalized
gameplay:
Cyberpunk
Creative platform
User-built custom worlds extend
game lifespan
60
2016
2017
2018
2019
2020
2021
53
2022
46
2023
63
Seasonal content
2024
Live-service updates sustain
player engagement
Source: NewZoo report, Allied market research report, Invest game report
Note: 1 Assumed game revenue is proportional to game play time of each genre, 2 User Generated Content, 3 Date of game release
(2023) User-made custom
world:
Skyrim ongoing mod
16
Industry overview
Market trend: genre
II
Player-driven creation and AI-powered gameplay are reshaping genre dynamics and accelerating growth in
shooting and RPG titles
Key industry trends
UGC expansion
KRW
17.8trn
1
KRW
35.5trn
2024
2031E
UGC market size
Trending genre features
Benefits to shooting and RPG genre
UGC in shooting genre
Increased monetization potential
⚫ Players design custom arenas using
built-in editors
Without UGC
⚫ User-created missions enhance
competitiveness and engagement
100%
100%
2
⚫ Players use text prompts to generate RPG
worlds, quests, and characters
⚫ Builds vibrant communities where players
share, remix, and collaborate on creations
⚫ Supports personalized character creation
and customized NPC interactions
1
AI in shooting genre
⚫ AI opponents adjust tactics based on player
performance
<5%
50%
2024
2031E
% of games with AI
100%
Year
1 generated 8% Year
5 revenue
Shooter with
UGC
more
8% 31%
and 31%
revenue
in
inUGC
the generated
first year and
moremore
by the
fifth year
the first and fifth year respectively
Higher player retention
Without AI NPC
With AI NPC
175%
100%
⚫ AI generates varied map layouts to keep
gameplay dynamic
100%
2
AI in RPG genre
⚫ Dynamically generates game content
tailored to player preferences and behavior
⚫ Autonomous NPCs react to player actions
and evolve behavior
⚫ NPCs (non-playable characters) with
custom dialogue and adaptive behavior
⚫ AI modifies quests dynamically to create a
living narrative
Source: Bain research, NewZoo report
100%
131%
UGC in RPG genre
⚫ Empowers players to design levels,
characters, and full game modes
AI boom
108%
With UGC
1
RPGs with AI NPCsYear
achieved
a 75% higher
AI NPC achieved
retention
retention75%
rate higher
in the first
year rate in
the first year
17
Industry overview
Market analysis: geography
II
Asia’s remarkable growth is propelled by India’s digital surge, driven by mobile expansion and accelerating
economic development
Key drivers
Game industry revenue distribution1 by continent (KRW trn)
Asia
Europe
NA
SA
5 year CAGR of key Asian markets
316
288
288
293
325
303
14.0%
10.0%
233
129
200
134
138
140
147
152
92
Affordable phones
and cheap internet
2
Expansion of target
demographic
8.0%
6.0%
3.3%
4.0%
122
175
12.8%
12.0%
271
219
1
2.0%
3
0.7%
0.0%
105
India
China
Japan
Collaboration with
local cultural content
81
65
70
43
65
2
2016
48
69
2
2017
52
51
72
74
3
2018
3
2019
76
72
77
77
84
87
1
Market saturation
2
Rapid influx of new titles outpaces
consumer demand
75
78
77
73
80
79
80
4
5
5
5
6
6
6
2020
2021
2022
2023
2024
2025E
2026E
Source: KOCCA, Euromonitor Country report, EBSCoHost report
Note: 1 YoY growth
3
Regulations
Stricter compliance requirements
limit consumer purchasing activity
Content fatigue
Repetitive gameplays and
releases diminish user excitement
4
Demographic constraints
Aging populations shift interest
away from gaming
18
Industry overview
Competitor landscape: peer categorization
II
The industry underscores the importance of managing franchise IPs for sustained profitability while cautioning
against operational complexity and margin dilution from over-diversification
1
50%
1
2
⚫ Developers with strong franchise IPs and loyal audiences, leveraging
microtransactions or premium pricing to maintain high margins
⚫ Focus on sequels or expansions rather than diversification, relying on
proven franchises
40%
30%
Operating profit margin1
High profitability & concentrated franchise IP
2
High profitability & diverse franchise IP
⚫ Developers holding a broad portfolio of globally recognized IPs, often
with long operating histories
20%
⚫ Steady revenue from releases and merchandise, supported by
economies of scale and strong brand equity
3
4
10%
3
Low profitability & concentrated franchise IP
⚫ Developers with focused IPs serving niche audiences or emerging
studios with potential for fast growth
0%
⚫ Lower profitability typically linked to elevated development spending to
pursue growth opportunities
(10%)
4
Low profitability & diverse franchise IP
⚫ Developers operating numerous underperforming IPs, creating
complexity and reducing margins
(20%)
0
5
10
15
20
25
Number of franchise IPs2
Source: Capital IQ, Company filings
Note: 1 As of 2025E, 2 Pure gaming company over market capitalization of USD 2bn
30
35 +
⚫ Profitability pressured by heavy R&D requirements and marketing
spend across varied franchises
19
Industry overview
Competitor landscape: growth profile
II
With strong profitability and accelerating revenue growth, Krafton outperforms global gaming peers and is
positioned for further expansion through strategic acquisition of franchise IPs
50%
International revenue
92%3
46%3
Sample
47%3
40%
46%
Revenue3
Operating profit margin1
30%
Krafton stands out by leveraging its strong franchise IPs to expand more
aggressively across high-growth international markets than its peers
20%
Operation efficiency
10%
Sample
EBITDA
CAPEX
0%
54
21
(KRW bn)
26
15
1,287
(10%)
(20%)
(20%)
(10%)
0%
10%
20%
30%
715
856
875
2021
2022
2023
EBITDA
CAPEX
213
(KRW bn)
218
233
43
166
1,580
4,048 3,786 4,064 3,678 3,506
2024 2025E
2021
2022
195
2023
2024 2025E
High EBITDA growth alongside modest CAPEX underscores Krafton’s
optimized operating structure, enabling capital-light, scalable profitability
Average YoY revenue growth2
Source: Capital IQ, Company filings
Note: 1 As of 2025E, 2 As of 2022-2025E, 3 As of LTM 3Q25 for Krafton, LTM 2Q25 for competitors
20
Industry overview
Competitor landscape: key comparables
II
Krafton demonstrates exceptional stability with a 42.0% operating profit margin, showing strong growth potential
supported by its expanding franchise pipeline and accelerating overseas penetration
Company
Key genre
Shooter
Shooter
Geography1
92%
43%
RPG
46%
Mixed
MMORPG
47%
10%
Platform
41% 40%
44% 42%
35%
OPM1
(%)
—
Revenue1
(KRW trn)
20%
21% 22%
20%
34%
5%
17%
2.7
1.9
3.0
2021 2022 2023 2024 LTM
3.3
4.0
4.2
2021 2022 2023 2024 LTM
9%
16%
22%
8%
4.2
2.6
1.9
8%
(5%) (4%)
(7%) (8%)
10.0 10.6 10.8 10.7 10.4
1.9
31% 31% 31% 32%
2021 2022 2023 2024 LTM
2.5
2.7
2.5
2.7
2.6
2021 2022 2023 2024 LTM
2.3
2.6
1.8
1.6
1.6
2021 2022 2023 2024 LTM
Key titles
Source: Capital IQ, Company filings
Note: 1 As of LTM 3Q25 for Krafton, LTM 2Q25 for competitors
21
Key investment highlights
1
Diversifying revenue streams beyond PUBG
III
Krafton has expanded beyond PUBG’s shooter dominance into a diversified portfolio spanning RPG, adventure,
action, and simulation through eight years of strategic releases and acquisitions
Shooter
RPG
Adventure
Action
Simulation
Dinkum
Moonbreaker
Dark and Darker
Callisto Protocol
Last Epoch
3,024
Krafton revenue (KRW bn)
Elyon
2,710
1,670
1,120
1,087
2018
2019
1,885
1,854
1,911
2021
2022
2023
310
2017
Source: Company filings, IR report
2020
2024
LTM 3Q25
23
Key investment highlights
Diversifying revenue streams beyond PUBG
1
III
PUBG is evolving into a long-cycle mega-franchise with steady growth, supported by continuous content updates
and global collaborations
MAU MAU
MAU
(mm
users)
(mm users)
users)
(mm
1.8
1.8
1.8
1.6
1.6
1.6
1.4
1.4
1.4
PUBG X
1.2
1.2
1.2
Aespa
1.0
1.0
1.0
0.8
0.8
0.8
0.6
0.6
0.6
0.4
0.4
0.4
0.2
0.2
0.2
0.0
0.0
0.0
PUBG PC
Monthly Active Users
F2P
Transition
PUBG X
Spiderman
PUBG X
Among Us
2022
2022
2022
Clan System
2023
2023
2023
Rondo
Map update
2024
2024
2024
957
727
Collaboration
MAU
('000 users)
Before
85% more MAU
Content update
“ Upcoming updates”
Ongoing collaborations
4Q2025
Babymonster
collaboration
Aespa collaboration
MAU
('000 users)
Ongoing updates
728
Rank system update
8th Anniversary
Source: Company filings, Financial reports
Porsche collaboration
After
1,347
Before
8th
Anniversary
2025
2025
2025
“ Continuous collaborations and content updates revamp PUBG’s MAU ”
32% more MAU
PUBG X
Ducati
4Q2025
4Q2025
UGC update
Contender update
After
24
Key investment highlights
1
Diversifying revenue streams beyond PUBG
III
inZOI emerges as Krafton’s next flagship title, redefining life simulation with advanced AI, open-world depth, and
photorealistic graphics to challenge The Sims’ decade-long dominance within under-contested genre
Product overview
Next- Generation life simulation game
User
acquisition
90k+
MAU
76.0%
Early access
Positive review
⚫ Pre-launched in 2025 on PC and console
⚫ Players control virtual inhabitants (“Zois”), shaping
their lives through player-driven choices
⚫ Differentiates itself from competitors like The Sims
through advanced AI technology
Release
User
retention
1.5mm+
Total downloads
Edge over competitor
400k+
Steam followers
NPC
‘SmartZoi’ with autonomous personality
Open world
Full open world
Graphics
Hyper-realistic graphics
Karma
Consequences from good or bad choices
User
demand
('000 users)
377
5
NPC
4
16
Scripted behavior with preset patterns
Open world
Segmented world
Graphics
Cartoon rendered graphics
Karma
No legal system
Source: Company filings
Users in first
month
Steam followers
in first month
25
Key investment highlights
2
Strong fundamentals for IP creation and ownership
III
Operating in a hit-driven industry, Krafton enhances its growth trajectory by scaling high-potential IPs via a solid 2nd
party publishing model, establishing itself as a rising content powerhouse with 11 titles underway
Accelerated genre
expansion opportunity
Krafton
Titles with strong potential in niche markets
Experience with 30+ IPs across diverse markets
Robust live-operations and monetization engine
External Developers
Titlehso
2nd party
publishing
Community-driven and cultural support
Agile development and low-cost production
Strong financial capacity to invest and absorb risk
De-risked high-upside
investments
Further expansion
Selective titles
Maximizing efficiency
2022
5 new titles secured
1PP
2PP
Source: Company filings
11 new titles secured
Diversify portfolio and
increase volume of titles
Successful implementation of 2PP generated
USD 15.6mm gross revenue, and sold 1mm copies
2023
2025
26
Key investment highlights
2
Strong fundamentals for IP creation and ownership
III
By maximizing both 1PP and 2PP capabilities, Krafton cost-efficiently scales its growing title pipeline while
maintaining high operating profit margins, supporting an 18.1% operating profit CAGR
Publishing capabilities
Strategic partnership
Cost efficiency achieved
18.1% 2021- 2025 LTM1 Operating Profit CAGR
Internal studios
1
(MMOPRG)
(Vehicle combat)
(PUBG PC/M)
OPM
Operating profit (KRW bn)
2
41%
44%
40%
42%
1
(AAA for NA/EU)
(Simulation)
(AI gameplay)
0
0
1,267
35%
1,182
0
1
(Simulation)
(Indie PC titles)
(UGC metaverse)
0
1
0
752
1
(Life simulation)
(MOBA)
768
651
0
1
0
2nd party publishing
1st party publishing
0
0
⚫ Reduced risk of new market entry
⚫ Reduced management fees
⚫ Live operation fees reduced
⚫ Reduced commission fees
0
0
0
Costs optimization
Source: Capital IQ, Company filings
Note: 1 As of LTM 3Q25
0
2021
2022
2023
2024
LTM 3Q25
27
Key investment highlights
3
Strategic M&A leadership paving path to IP dominance
III
Led by a chairman with deep M&A expertise and global vision, Krafton is rapidly evolving into a premier IP content
powerhouse through bold strategic acquisitions
Global expansion
Increases brand reach, customer base
and revenue potential across diverse regions
Vision of global
franchise IP
ownership
Chairman
Develop franchise IP
Builds recurring revenue through
merchandise and cross-media opportunities
Entry to new markets
Reduces risk and creates resilience
against market and consumer trend fluctuations
Byungkyu Jang
“Living legend of Korea’s IT
industry and a true icon for
startup founders”
- The Blue House
18+ years VC
background
Proven insight
of identifying
high-value
companies
Recent M&A
focus
Track record of
successful
investments in
tech start-ups
4 Startup
experiences
Multiple mega
deals currently
under consideration
Source: News articles, IR report, Company filings
2021 Dec
2022 Feb
2022 Nov
2023 Nov
2025 Jun
2025 Jul
Expands global
footprint
Boosts developing
capacity
Builds premium
game expertise
Drives expansion
into UGC platforms
Enters broader
media with IP
Advances global
expansion
28
Key investment highlights
3
Strategic M&A leadership paving path to IP dominance
III
Krafton's strategic M&A acquisitions of developers, UGC platforms and animation firm in line with Chairman Jang’s
goal allows Krafton to strengthen its core gaming development while simultaneously expanding its business
Global
expansion
Developing
franchise IP
Entry to new
markets
Company acquired and equity %
Value acquired for
Role of company
M&A benefits
100% of Eleventh Hour Games Inc.
KRW 129bn
Indie developer behind
hit title Last Epoch
Provides Krafton with a global hit title
that sold over 3 million copies,
broadening its reach beyond Asia
100% of Unknown Worlds Entertainment
KRW 940bn
Creator of the
Subnautica franchise
Gives Krafton a stronger North American
presence backed by a widely acclaimed
franchise
100% of 5minlab
KRW 54bn
Developer recognized
for strong
technical expertise
Enables Krafton to enhance mobile-first
design, live operations, and crossplatform capabilities
72.9% of Neon Giant AB
KRW 43bn
Developer with
experience in premium
action titles
Provides Krafton with veteran
developers skilled in major franchises
and high-quality storytelling
100% of ADK Holdings Inc.
KRW 710bn
Japan’s top
animation studio with
300+ anime works
Expands Krafton’s IP ecosystem into
anime and broader media through
Japan’s top-tier animation market
85% of OVERDARE
KRW 40bn
UGC platform company
Positions Krafton to capture growth in
UGC-driven gaming, advancing its
creator-focused content strategy
Source: News articles, IR report, Company filings
29
Key investment highlights
4
Best positioned to enjoy market tailwinds in India
Monetization?
III
India’s gaming market is experiencing strong structural tailwinds of rising in-game spending, gamer population
growth, and improving digital accessibility, creating a compelling multi-year expansion opportunity for Krafton
1
2
Increase in monetization
Increase in gaming population
Increasing disposable income (KRW mm)
Increased population (mm)
31
2020
2021
2022
2023
2024
Increased ARPPU ('000 KRW)
130
2020
2021
2022
2023
35
2025E
2024
2027E
2028E
2029E
2020
2021
2022
2023
2024
Increasing sale of smartphones ( ‘000 units)
384
706
343
354
2026E
275
1,451
Increasing Esports market size (KRW bn)
23
Easier access to gaming
Increased mobile data market size (KRW bn)
1,403
11
3
2025E
2026E
2027E
2028E
2029E
2025E
2026E
2027E
2028E
2029E
⚫ Rising incomes lead to increased
willingness for in-game purchases
⚫ Growing population expands gamer
base, driven by a young demographic
⚫ Improved internet usage enables
seamless gaming experience
⚫ Increased per-user spending drives
stronger monetization potential
⚫ Higher esports market size reflects
rising video game engagement
⚫ Rising smartphone ownership
accelerates mobile game adoption
India’s rising consumption, demographic profile, and robust macro environment are shaping a highly attractive growth landscape for Krafton
Source: IR report, Netscribes report, Lumikai (Google report)
30
Key investment highlights
4
Best positioned to enjoy market tailwinds in India
III
Krafton’s footprint in India continues to expand from a single-title success to broadened market presence,
strengthening its leadership in the country’s gaming landscape while maintaining robust BGMI fundamentals
Broadening presence across
India’s entertainment ecosystem
BGMI ranked #1 among
battle royale titles and
boasts over 250 million
downloads
Investing in India’s gaming
ecosystem and local studios
Diversifying portfolio with
new India-focused titles
2025
Launch of BGMI and rapid
early scale-up
2024
Introduction
in PUBG mobile into India
2023
Within 5 weeks of relaunch in
May 2023, BGMI surpassed
40mm downloads
2021
PUBG mobile quickly amassed
over 50mm downloads within
first year
2025
Announced plans to launch 3-4
games every year, such as
Bullet Echo India and Garuda
Continuous collaboration with
local celebrities and multiple
Esports tournaments
Committed to investing
KRW 300bn into Indian gaming
startups and human capital
250mm
199mm
Sustained
increase
in BGMI
cumulative
downloads
110mm
40mm cumul. downloads
2023
Jul
Jul 2023
2023
Sep Sep
2023
Source: Sensor tower, The Game World Observer, IR report, Times of India, The Indian Express
2023
Dec Dec
2023
2025
Sep Sep
2025
31
Key investment highlights
4
Best positioned to enjoy market tailwinds in India
III
Krafton maintains a dominant competitive edge in India, outperforming peers across critical KPIs from downloads
to engagement
Krafton’s current market dominance hinges on differentiation and proactive risk management
Krafton’s unparalleled market dominance
BGMI
COD mobile
240
Krafton’s differentiation factors
1
71%
140
Total
downloads
(mm)
Free to win revenue model
2024
Session
length
(min)
Free fire max (FFM)
Local data storage
ensuring Indian user
data is stored on Indian
servers for privacy
⚫ Access content at no cost, strategically
capturing India’s large population
⚫ Fostering sustainable revenue in the
long-term by growing active user base
BGMI
Strategic implements to mitigate regulatory risk
2
Data storage
Strategic partnership
with cybersecurity
companies for gaming
anti-cheating measures
BGMI’s Voice chat feature
⚫ Integrating voice chat within BGMI
enhances multiplayer collaboration
33
31
⚫ Opens up monetization streams through
in-app sale of voice customization
Cybersecurity
Proactive government
relations through
investment in local
gaming ecosystem
2024
BGMI
40
Monthly
active user
(mm)
FFM
300%
10
2024
3
Localization through collaboration
⚫ Partnerships with Bollywood actors with
in-game collaboration items
Local support
⚫ Game supports local languages other
than Hindi in order to target rural regions
Source: Sensor tower, The Game World Observer, Escharts, Udonis market research, The Indian Express, IR report
32
Key investment highlights
5
Integration of AI into gaming
III
Through strategic investments in AI research, partnerships, and dedicated AI studios, Krafton is driving dual-track
AI integration, elevating player immersion while optimizing development efficiency
Krafton’s AI investments
Krafton’s AI technology
AI technology in gaming experience
Strategic
partnerships in AI
co-development
Specialized studios
for AI expertise
Industry
leader in AIintegrated
gaming
Co-playable
character
(CPC)
SLM-powered playable
character enabling real-time
prompt-based customization
Reinforced
Leaning
bot
AI agent trained to evaluate
game difficulty, adjusting
challenge levels for players
Text-tospeech
transition AI
Voice-conversion AI that
translates player tone and
emotion into in-game effects
AI technology in gaming development
Number of AI research papers published
by Krafton
18
2024
Reconstructs character
motion from human photo by
converting 2D into 3D
Krafton
intelligence
system
AI assistant that unifies internal
data to enhance workflow
efficiency
19
Indicates
increasing
company
investment in AI
11
2023
Vision &
animation
generative AI
3Q25
Source: IR report, ESG report, Krafton AI website
33
Valuation
Valuation summary
IV
Illustrative football field suggests that Krafton is currently undervalued from both intrinsic and relative valuation,
and IAC analysis suggests 100% equity value to be traded at KRW 21,359bn
Methodology
(KRW bn, unless stated)
Equity value
Trading comps
Implied EV / 25E EBITDA3
Commentary
EBITDA
1,580
13.6x – 14.4x
±0.5x of
peer avg multiples
(14.0x)
EBITDA
1,681
12.5x – 13.4x
± 0.5x of
peer avg multiples
(12.2x)
[24 Nov 2025]
'25E EV/EBITDA
'26E EV/EBITDA
Metric
21,680
19,972
23,260
21,653
'25E PER
30,168
31,293
Net Income
1,125
19.0x – 19.4x
± 0.5x of
peer avg multiples
(27.3x)
'26E PER
29,884
31,102
Net Income
1,218
18.8x – 19.3x
± 0.5x of
peer avg multiples
(25.0x)
n.a.
11.5x – 14.1x
WACC 7.2%
PGR 1.4%
n.a.
12.2x – 15.0x
WACC 7.2%
EMM 12.7x
18,449
22,879
DCF
PGM1
EMM2
19,502
12,201
18,005
24,241
20,848
21,359
23,217
24,165
Equity value
Source: Capital IQ, Company filings
Note: 1 Perpetual growth method, 2 Exit multiple method, 3 Implied EV for each valuation methodology divided by 2025E EBITDA in bear and bull scenarios (KRW 1,569bn and 1,593bn respectively)
35
Valuation
Topline projections
IV
Topline projected with bottom-up approach for each gaming platform segment
Platform
X
Quantity
Average Revenue Per
Concurrent User
(ARPCCU)
X
Concurrent User
(# of users active
at specific timeframe)
Price of title on steam
X
Quantity of titles sold
Title
Price
PUBG
inZOI
1
PC
2
PUBG global
and China
Revenue
Yearly revenue received from Tencent
Mobile
BGMI
3
Average Revenue Per Paying User
(ARPPU)
X
Paying
User
(PU)
Console
Console
Growth rates reflecting timely historical trends
Others
Others
Growth rates reflecting timely historical trends
4
Source: Capital IQ, Company filings, SteamDB, Lumikai (Google report), Sensor tower
X
Monthly
Active User
(MAU)
36
Valuation
Revenue projections: PC
IV
PC sales revenue has been projected to reach KRW 1,201bn by 2029E at 18.2% CAGR1
(KRW bn, unless stated)
2020
2021
2022
2023
2024
2025E
2026E
2027E
2028E
2029E
Revenue
1,670
1,885
1,854
1,911
2,710
3,119
3,346
3,559
3,733
3,924
% growth
n.a.
12.9%
(1.7%)
3.1%
41.8%
15.1%
7.3%
6.4%
4.9%
5.1%
265
398
465
584
942
1,050
1,069
1,112
1,156
1,201
% of revenue
15.9%
21.1%
25.1%
30.6%
34.8%
33.7%
32.0%
31.2%
31.0%
30.6%
% growth YOY
n.a.
50.4%
16.7%
25.6%
61.3%
11.5%
1.8%
4.0%
3.9%
3.9%
PC revenue
177
266
419
574
926
966
1,007
1,050
1,095
1,142
% of revenue
10.6%
14.1%
22.6%
30.1%
34.2%
31.0%
30.1%
29.5%
29.3%
29.1%
% growth YOY
n.a.
50.0%
57.7%
37.0%
61.2%
0.1%
4.3%
4.3%
4.3%
4.3%
inZOI PC revenue
61
39
38
37
35
% of revenue
2.0%
1.2%
1.1%
1.0%
0.9%
% growth YOY
n.a.
(36.4%)
(1.4%)
(4.0%)
(4.0%)
16
24
24
24
24
24
PUBG PC revenue
Others PC revenue
88
133
46
10
% of revenue
5.3%
7.0%
2.5%
0.5%
0.6%
0.8%
0.7%
0.7%
0.6%
0.6%
% growth YOY
n.a.
51.3%
(65.5%)
(78.9%)
65.8%
0.0%
0.0%
0.0%
0.0%
0.0%
Key drivers and assumptions
(KRW bn, %)
PUBG CCU
% growth
PUBG ARPCCU
% growth
inZOI # of sales
% growth
inZOI price of title
% growth
2024
2025E
2026E
2027E
2028E
2029E
645,854 661,624 677,780 694,330 711,284 728,652
58.4%
2.4%
2.4%
2.4%
2.4%
2.4%
1,433,568 1,459,372 1,485,641 1,512,382 1,539,605 1,567,318
1.8%
1.8%
1.8%
1.8%
1.8%
1.8%
n.a. 1,333,077 847,837 835,967 802,529 770,427
n.a.
n.a.
(36.4%)
(1.4%)
(4.0%)
(4.0%)
n.a. 45,710.8 45,710.8 45,710.8 45,710.8 45,710.8
n.a.
n.a.
0%
0%
0%
0%
Source: Company filings, IR report, DART, SteamDB
Note: Revenue CAGR from 2020-2029E
⚫ PUBG CCU growth increases by 2.4% over 2025–2029 consistent with historical
performance and underpinned by sustained collaborations and iterative updates
⚫ PUBG ARPCCU advances at a conservative 1.8% per annum, in-line with the 2024
growth rate
⚫ inZOI unit sales momentum aligns with peer title The Sims 4 life-cycle trajectory,
mirroring comparable genre and monetization dynamics
⚫ inZOI price remains stable throughout the forecast horizon
37
Valuation
Revenue projections: Mobile
IV
Mobile sales revenue has been projected to reach KRW 2,655bn by 2029E at 7.9% CAGR1
(KRW bn, unless stated)
2020
2021
2022
2023
2024
2025E
2026E
2027E
2028E
2029E
Revenue
1,670
1,885
1,854
1,911
2,710
3,119
3,346
3,559
3,733
3,924
% growth
n.a.
12.9%
(1.7%)
3.1%
41.8%
15.1%
7.3%
6.4%
4.9%
5.1%
Mobile revenue
1,341
1,417
1,253
1,245
1,690
2,001
2,208
2,379
2,510
2,655
% of revenue
80.3%
75.2%
67.6%
65.2%
62.4%
64.1%
66.0%
66.8%
67.2%
67.7%
% growth YOY
n.a.
5.6%
(11.6%)
(0.6%)
35.7%
18.4%
10.4%
7.7%
5.5%
5.8%
PUBG global revenue
1,138
1,180
1,033
1,030
1,386
1,544
1,664
1,729
1,733
1,729
% of revenue
68.1%
62.6%
55.7%
53.9%
51.1%
49.5%
49.7%
48.6%
46.4%
44.1%
% growth YOY
n.a.
3.7%
(12.4%)
(0.3%)
34.6%
11.4%
7.8%
3.9%
0.3%
(0.3%)
BGMI revenue
43
135
103
261
332
420
525
652
801
% of revenue
2.3%
7.3%
5.4%
9.6%
10.7%
12.5%
14.8%
17.5%
20.4%
% growth YOY
n.a.
211.7%
(23.4%)
152.6%
27.4%
26.3%
25.2%
24.1%
22.9%
50
32
26
34
31
31
31
31
31
35
Others mobile revenue
% of revenue
2.1%
2.7%
1.7%
1.4%
1.2%
1.0%
0.9%
0.9%
0.8%
0.8%
% growth YOY
n.a.
44.6%
(35.8%)
(18.6%)
28.8%
(9.0%)
0.0%
0.0%
0.0%
0.0%
Key drivers and assumptions
(KRW, #)
BGMI MAU
% growth
BGMI annual PU
% of MAU*12
BGMI ARPPU
% growth
PUBG daily revenue
% growth
2024
7,020
15.0%
21,059
30.7%
17,208
14.7%
3.8
34.2%
2025E
8,073
15.0%
24,218
15.0%
19,060
10.8%
4.2
11.7%
Source: Company filings, IR report, DART, SteamDB
Note: Revenue CAGR from 2020-2029E
2026E
9,203
14.0%
27,608
14.0%
21,111
10.8%
4.6
7.8%
2027E
10,399
13.0%
31,197
13.0%
23,383
10.8%
4.7
3.9%
2028E
11,647
12.0%
34,941
12.0%
25,900
10.8%
4.7
-
2029E
12,928
11.0%
38,784
11.0%
28,687
10.8%
4.7
-
⚫ BGMI MAU follows ROV’s growth, expanding by 15% in 2026E with growth
moderating by 1% each subsequent year
⚫ BGMI paying-user ratio stabilizes at 25% of overall users over the forecast horizon
⚫ BGMI ARPPU growth escalates by 10.8% underpinned by rising disposable
income and reports indicating higher ARPPU for shooter titles in Indian market
⚫ Daily revenue received from Tencent increases broadly in line with recent historical
growth rate, reflecting sustained user engagement and stable monetization
38
Valuation
DCF projections: Base case
IV
IAC DCF analysis, applying 1.4% perpetual growth rate and 12.7x exit multiple, suggests an immense upside of
KRW 431,993 per share to KRW 457,448 per share respectively
(KRW bn, unless stated)
2025E
2026E
2027E
2028E
2029E
Revenue
3,119
n.a.
1,633
52.4%
1,486
47.6%
n.a.
355
96
(49)
94
1,178
1
0.9
1,098
3,346
7.3%
1,769
52.9%
1,577
47.1%
6.1%
385
100
70
104
1,126
2
0.9
980
3,559
6.4%
1,903
53.5%
1,655
46.5%
5.0%
411
96
65
111
1,195
3
0.8
970
3,733
4.9%
2,051
54.9%
1,683
45.1%
1.6%
425
95
50
120
1,232
4
0.8
933
3,924
5.1%
2,220
56.6%
1,704
43.4%
1.3%
439
101
62
131
1,234
5
0.7
872
% growth
OPEX
% of revenue
EBIT
% margin
% growth
(-) Income tax
(-) Capital expenditure
(-) Change in net working capital
(+) Depreciation & Amortisation
UFCF
Discount period
Discount factor
PV of UFCF
Perpetual Growth Method
PGR
PV of FCF
PV of Terminal Value
TEV
Implied Multiple 25E
Implied Multiple 26E
1.4%
4,852
15,245
20,098
12.7x
12.0x
ROK GDP growth rate
Exit Multiple Method
Exit multiple
PV of FCF
PV of Terminal Value
TEV
12.7x
4,852
16,451
21,304
Derived from peer company multiple
Source: Company filings, DART, Capital IQ
EV - EqV bridge (PGM)
Implied EV
(-) Lease liabilities
(-) LT debt
(-) ST Lease liabilities
(+) Cash and equivalents
Implied EqV
TSO (mm)
Implied share price (KRW)
20,098
199
7
3
586
20,474
47.4
431,993
WACC
EV - EqV bridge (EMM)
Implied EV
(-) Lease liabilities
(-) LT debt
(-) ST Lease liabilities
(+) Cash and equivalents
Implied EqV
TSO (mm)
Implied share price (KRW)
21,304
199
7
3
586
21,680
47.4
457,448
WACC
6.8%
7.0%
7.2%
7.4%
7.6%
6.8%
7.0%
7.2%
7.4%
7.6%
1
Based on top-line PC and mobile
and cost projections
Tax rate: 24.0%
2
CAPEX: Historical constant
Working Capital: Historical avg.
D&A: Historical avg.
3
WACC: 7.2%
1.0%
20,753
20,071
19,434
18,836
18,274
Equity Value
Perpetual growth rate
1.2%
1.4%
1.6%
21,338
21,965
22,642
20,613
21,193
21,816
19,936
20,474
21,050
19,304
19,803
20,336
18,710
19,175
19,670
1.8%
23,372
22,487
21,668
20,908
20,200
11.7x
20,723
20,553
20,384
20,217
20,053
Equity Value
Exit multiple (EV / EBITDA)
12.2x
12.7x
13.2x
21,383
22,044
22,704
21,207
21,861
22,515
21,032
21,680
22,328
20,859
21,501
22,144
20,689
21,325
21,961
13.7x
23,364
23,169
22,976
22,786
22,597
39
Valuation
Relative valuation: operating statistics
IV
Krafton’s EBITDA and net income margins rank in the top tier of global gaming peers, reinforcing its superior
operating profile
(KRW bn1, unless stated)
Company
Country
Krafton
S. Korea
Mkt cap2
11,380
EV
8,931
Group 1: High profitability & concentrated franchise IP
NEXON
Japan
27,483
21,335
XD
China
5,854
5,285
CD Projekt
Poland
8,824
8,398
Kingnet Network
China
8,948
8,224
Koei Tecmo
Japan
6,598
6,204
Mean
Median
Group 2: High profitability & diverse franchise IP
Electronic Arts
USA
71,517
72,858
Capcom
Japan
15,254
14,042
Nintendo
Japan
143,544 123,947
Paradox Interactive
Sweden
2,562
2,434
NetEase
China
118,827
91,364
Square Enix
Japan
10,475
8,222
Mean
Median
Group 3: Low profitability & concentrated franchise IP
Netmarble
S. Korea
4,252
4,967
NCSOFT
S. Korea
3,710
2,013
Perfect World
China
5,865
5,222
Mean
Median
Group 4: Low profitability & diverse franchise IP
Take-Two Interactive
USA
62,168
64,163
BANDAI NAMCO
Japan
27,269
23,821
Embracer Group
Sweden
2,757
2,218
Mean
Median
2025E
Revenue
2026E
2027E
CAGR
EBITDA margin
2025E
2026E
2027E
2025E
EBIT margin
2026E
2027E
Net income margin
2025E
2026E
2027E
3,208
3,834
4,223
14.7%
44.8%
41.5%
40.9%
40.8%
38.1%
37.5%
29.5%
30.1%
29.1%
4,353
1,288
364
1,168
748
4,657
1,406
348
1,387
826
4,876
1,472
1,409
1,588
836
5.8%
6.9%
96.7%
16.6%
5.8%
26.4%
6.9%
32.3%
29.0%
47.8%
39.8%
35.9%
37.0%
35.9%
31.8%
30.8%
43.6%
42.8%
40.5%
37.9%
40.5%
31.8%
32.8%
69.9%
42.0%
38.1%
42.9%
38.1%
29.7%
27.2%
39.2%
39.0%
33.9%
33.8%
33.9%
29.7%
26.8%
35.1%
41.6%
38.1%
34.3%
35.1%
29.8%
27.2%
48.7%
41.9%
38.1%
37.1%
38.1%
22.5%
24.1%
39.4%
37.3%
39.9%
32.6%
37.3%
23.2%
23.5%
36.6%
39.0%
38.4%
32.2%
36.6%
24.0%
24.3%
45.7%
39.1%
37.2%
34.1%
37.2%
10,223
1,581
10,895
346
22,890
3,046
11,484
1,733
21,792
393
24,698
2,748
11,873
1,917
23,919
411
26,882
2,929
7.8%
10.1%
48.2%
9.1%
8.4%
(1.9%)
13.6%
8.7%
33.2%
43.0%
25.7%
60.8%
34.1%
14.8%
35.3%
33.7%
36.5%
43.9%
18.6%
67.1%
35.2%
19.6%
36.8%
35.8%
37.0%
44.7%
24.2%
65.7%
36.1%
18.5%
37.7%
36.5%
29.2%
39.3%
24.2%
21.0%
31.7%
12.3%
26.3%
26.7%
33.7%
40.9%
17.7%
32.0%
32.6%
16.5%
28.9%
32.3%
34.3%
41.7%
23.5%
40.8%
33.7%
15.7%
31.6%
34.0%
15.7%
28.4%
23.3%
20.4%
31.6%
9.0%
21.4%
21.8%
13.1%
29.3%
17.3%
25.5%
31.1%
10.4%
21.1%
21.4%
17.4%
30.4%
19.9%
32.5%
31.4%
11.4%
23.8%
25.2%
2,783
1,542
1,388
2,975
1,959
1,781
3,021
2,042
1,951
4.2%
15.1%
18.6%
12.6%
15.1%
16.9%
9.0%
21.0%
15.6%
16.9%
17.4%
19.1%
24.3%
20.3%
19.1%
17.1%
19.8%
24.2%
20.4%
19.8%
12.3%
2.4%
15.5%
10.1%
12.3%
12.8%
14.2%
21.1%
16.1%
14.2%
13.8%
15.4%
23.5%
17.6%
15.4%
12.6%
25.5%
11.9%
16.6%
12.6%
11.2%
14.7%
17.2%
14.4%
14.7%
11.8%
15.6%
19.5%
15.6%
15.6%
8,032
11,481
3,689
9,277
11,907
2,596
12,924
12,437
2,996
26.8%
4.1%
(9.9%)
7.0%
4.1%
14.1%
18.3%
24.8%
19.1%
18.3%
15.1%
16.8%
25.6%
19.2%
16.8%
21.3%
17.2%
30.8%
23.1%
21.3%
11.3%
15.1%
14.0%
13.5%
14.0%
12.9%
13.8%
7.2%
11.3%
12.9%
20.4%
14.2%
12.0%
15.5%
14.2%
(13.5%)
10.9%
(5.0%)
(2.5%)
(5.0%)
(5.3%)
10.1%
(4.0%)
0.3%
(4.0%)
7.6%
10.3%
7.4%
8.4%
7.6%
14.9%
8.4%
26.7%
29.0%
28.5%
30.8%
31.0%
31.8%
20.9%
24.2%
22.6%
26.8%
25.5%
27.2%
17.0%
22.5%
17.0%
17.3%
20.5%
19.9%
Total Mean
Total Median
Source: Company filings
Note: 1 Applied FX spot rate as of 31 Oct 2025, 2 As of 24 Nov 2025
40
Valuation
Relative valuation: trading statistics
IV
Krafton’s trading multiples suggest potential undervaluation relative to global gaming peers, failing to fully reflect its
strong profitability and franchise fundamentals
(KRW bn1, unless stated)
Company
Country
Krafton
S. Korea
Mkt cap2
11,380
EV
2025E
EV/Revenue3
2026E
2027E
2025E
EV/EBITDA3
2026E
2027E
2025E
EV/EBIT3
2026E
2027E
2025E
PER3
2026E
2027E
8,931
2.8x
2.3x
2.1x
6.2x
5.6x
5.2x
6.8x
6.1x
5.6x
12.0x
9.9x
9.3x
Group 1: High profitability & concentrated franchise IP
NEXON
Japan
27,483
21,335
XD
China
5,854
5,285
CD Projekt
Poland
8,824
8,398
Kingnet Network
China
8,948
8,224
Koei Tecmo
Japan
6,598
6,204
Mean
Median
5.0x
4.4x
nm
7.5x
8.3x
6.3x
6.2x
4.6x
4.0x
nm
6.3x
7.5x
5.6x
5.5x
4.4x
3.8x
6.4x
5.5x
7.4x
5.5x
5.5x
15.2x
14.2x
nm
17.7x
23.1x
17.5x
16.4x
14.4x
12.2x
nm
13.9x
18.5x
14.8x
14.1x
13.7x
10.9x
8.5x
12.3x
19.5x
13.0x
12.3x
16.5x
15.1x
nm
18.1x
24.5x
18.5x
17.3x
15.4x
14.0x
nm
14.3x
19.7x
15.9x
14.8x
14.7x
13.2x
12.2x
12.4x
19.5x
14.4x
13.2x
28.1x
18.9x
61.4x
20.6x
22.1x
30.2x
22.1x
25.4x
17.7x
69.3x
16.5x
20.8x
30.0x
20.8x
23.5x
16.3x
13.7x
14.4x
21.2x
17.8x
16.3x
Group 2: High profitability & diverse franchise IP
Electronic Arts
USA
71,517
72,858
Capcom
Japan
15,254
14,042
Nintendo
Japan
143,544 123,947
Paradox Interactive
Sweden
2,562
2,434
NetEase
China
118,827
91,364
Square Enix
Japan
10,475
8,222
Mean
Median
7.2x
8.6x
nm
7.0x
4.2x
2.6x
5.9x
7.0x
6.4x
7.8x
5.6x
6.2x
3.9x
2.9x
5.5x
5.9x
6.2x
7.1x
5.1x
5.9x
3.6x
2.7x
5.1x
5.5x
21.5x
20.7x
nm
11.6x
11.7x
18.2x
16.7x
18.2x
17.4x
18.4x
30.6x
9.2x
10.5x
15.2x
16.9x
16.3x
16.6x
16.4x
21.4x
9.0x
9.4x
15.2x
14.7x
15.8x
24.4x
22.6x
nm
33.6x
12.6x
21.9x
23.0x
22.6x
18.8x
19.8x
32.2x
19.4x
11.4x
18.1x
19.9x
19.1x
17.9x
17.6x
22.0x
14.5x
10.1x
17.9x
16.7x
17.7x
44.7x
33.9x
56.6x
36.4x
16.4x
38.3x
37.7x
37.4x
47.7x
30.1x
38.2x
25.5x
15.5x
36.5x
32.2x
33.3x
34.7x
26.1x
30.2x
19.2x
14.1x
31.4x
25.9x
28.2x
Group 3: Low profitability & concentrated franchise IP
Netmarble
S. Korea
4,252
4,967
NCSOFT
S. Korea
3,710
2,013
Perfect World
China
5,865
5,222
Mean
Median
1.8x
1.6x
3.9x
2.4x
1.8x
1.7x
1.3x
3.0x
2.0x
1.7x
1.7x
1.2x
2.8x
1.9x
1.7x
10.6x
14.6x
17.9x
14.4x
14.6x
9.6x
5.4x
12.1x
9.0x
9.6x
9.6x
5.0x
11.1x
8.6x
9.6x
14.6x
nm
24.2x
19.4x
19.4x
13.0x
7.2x
13.9x
11.4x
13.0x
11.9x
6.4x
11.4x
9.9x
11.4x
12.2x
9.4x
35.6x
19.1x
12.2x
12.8x
12.9x
19.2x
14.9x
12.9x
11.9x
11.7x
15.4x
13.0x
11.9x
Group 4: Low profitability & diverse franchise IP
Take-Two Interactive
USA
62,168
64,163
BANDAI NAMCO
Japan
27,269
23,821
Embracer Group
Sweden
2,757
2,218
Mean
Median
8.3x
2.1x
0.6x
3.7x
2.1x
7.1x
2.0x
0.9x
3.4x
2.0x
5.1x
1.9x
0.8x
2.6x
1.9x
nm
11.4x
2.4x
6.9x
6.9x
nm
11.9x
3.3x
7.6x
7.6x
23.3x
11.1x
2.4x
12.3x
11.1x
nm
13.7x
4.3x
9.0x
9.0x
nm
14.5x
11.9x
13.2x
13.2x
24.4x
13.5x
6.1x
14.7x
13.5x
nm
21.9x
nm
21.9x
21.9x
nm
22.7x
nm
22.7x
22.7x
63.1x
21.3x
12.4x
32.3x
21.3x
Total Mean
Total Median
4.9x
4.4x
4.5x
4.3x
4.2x
4.4x
14.0x
14.9x
12.1x
12.2x
12.1x
11.1x
17.5x
18.1x
15.1x
14.5x
13.9x
13.5x
27.2x
28.1x
25.0x
22.7x
22.3x
19.2x
Source: Company filings
Note: 1 Applied FX spot rate as of 31 Oct 2025, 2 As of 24 Nov 2025, 3 Threshold of a) EV/Revenue: 10.0x, b) EV/EBITDA: 35.0x, c) EV/EBIT: 40.0x, d) PER: 80.0x, any numbers that are 1) negative 2)
over the threshold represented as ‘nm’
41
Disclaimer
This Information Memorandum (the "Memorandum" or "IM") was prepared exclusively for the benefit and internal use of the Investment Analysis
Club (“IAC”) to whom it is directly addressed and delivered in order to assist the club in evaluation, on a preliminary basis, the feasibility of a
possibility of investment execution and does not carry any right of publication or disclosure, in whole or in part, to any other party. The Memorandum
has been assembled by the managements and members of IAC. The sole purpose of this Memorandum is for discussion purposes only and is
incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by the IAC presentation team.
Use of this Memorandum is governed by the orally or written terms of that are stated before each presentation begins. Any personnel outside of IAC
who views this presentation will be strictly limited from the use and disclosure of the information included herein. This Memorandum may not be
used or disclosed without the express written consent of the Seller or for any purpose other than the Neither this presentation nor any of its contents
may be disclosed or used for any other purpose without the prior written consent of IAC management team.
This Memorandum is being furnished to a limited number of parties who have attributed to the making of the presentation or has been invited to
view the presentation. While the information provided herein is believed to be accurate and reliable, neither IAC Management, The University of
Hong Kong, nor Krafton makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Only
those representations and warranties contained in a written legal document shall have any legal effect. The pro forma and estimated financial
information contained herein were prepared expressly for use herein and is based on certain assumptions and management's analysis of
information available at the time this Memorandum was prepared. Neither IAC Management, The University of Hong Kong, nor Krafton makes any
representation, warranty or other assurance, express or implied, that any of the projections will be realized. Prospective purchasers should conduct
their own investigation and analysis of the business, data and property described herein.
Contact: iac.mgmt.@outlook.com
IAC and / or certain of its affiliates. All rights reserved.
Appendix
Financials – Income statement projection
V
Krafton Income statement base case
(KRW bn, unless stated)
2020
2021
2022
2023
2024
2025E
2026E
2027E
2028E
2029E
Revenue
% growth
1,670
-
1,885
12.9%
1,854
(1.7%)
1,911
3.1%
2,710
41.8%
3,119
15.1%
3,346
7.3%
3,559
6.4%
3,733
4.9%
3,924
5.1%
OPEX
% of revenue
897
53.7%
1,235
65.5%
1,102
59.5%
1,143
59.8%
1,527
56.4%
1,633
52.4%
1,769
52.9%
1,903
53.5%
2,051
54.9%
2,220
56.6%
EBIT
% of revenue
EBITDA
% of revenue
774
46.3%
818
49.0%
651
34.5%
715
37.9%
752
40.5%
855
46.1%
768
40.2%
875
45.8%
1,182
43.6%
1,287
47.5%
1,486
47.6%
1,580
50.7%
1,577
47.1%
1,681
50.2%
1,655
46.5%
1,767
49.6%
1,683
45.1%
1,802
48.3%
1,704
43.4%
1,835
46.8%
Non-operating income / loss
Interest income
Interest expense
Other gain / loss
(107)
3
6
(105)
111
11
7
107
(68)
34
8
(94)
61
38
9
32
540
33
9
517
(5)
15
5
(15)
26
46
5
(15)
56
76
5
(15)
89
109
5
(15)
124
144
5
(15)
Profit before tax
667
761
684
829
1,723
1,481
1,603
1,711
1,772
1,828
Income tax expense
Effective corporate tax rate
111
16.6%
231
30.3%
169
24.7%
235
28.3%
420
24.4%
355
24.0%
385
24.0%
411
24.0%
425
24.0%
439
24.0%
Net income
% of revenue
556
33.3%
530
28.1%
515
27.8%
594
31.1%
1,303
48.1%
1,125
36.1%
1,218
36.4%
1,301
36.5%
1,346
36.1%
1,389
35.4%
44
Appendix
Financials – Balance sheet projection
V
Krafton Balance sheet base case
(KRW bn)
2020
2021
2022
2023
2024
2025E
2026E
2027E
2028E
2029E
Current assets
Cash & cash equivalents
Marketable securities
Accounts receivable
Other current assets
Non-current assets
Investment in subsidiary
Marketable securities
PP&E
Intangible assets
Investment properties
Other long-term assets
Total assets
1,293
720
12
462
98
427
17
99
140
12
69
90
1,719
3,654
3,019
531
104
2,064
395
195
244
911
183
136
5,718
3,893
675
2,451
526
242
2,145
425
226
223
868
202
201
6,038
3,964
721
2,340
700
203
2,476
571
301
257
608
544
195
6,440
5,004
582
3,190
1,007
226
2,915
722
315
240
656
557
425
7,919
6,128
1,754
3,190
958
226
2,916
722
315
256
642
557
425
9,045
7,350
2,906
3,190
1,028
226
2,913
722
315
264
630
557
425
10,263
8,666
4,157
3,190
1,093
226
2,897
722
315
265
614
557
425
11,563
10,037
5,477
3,190
1,144
226
2,873
722
315
257
597
557
425
12,910
11,456
6,834
3,190
1,205
226
2,843
722
315
243
581
557
425
14,299
Current liabilities
Accounts payable
Accrued expense
Current interest-bearing debt
Short-term borrowings
Short-term lease liabilities
Other current liabilities
Non-current liabilities
Accrued expense
Non-current interest-bearing
debt
Long-term borrowings
Long-term leasing liabilities
Other non-current liabilities
Total liabilities
407
153
34
1
33
220
98
24
638
0
262
55
55
322
471
17
411
0
120
64
7
57
227
510
34
521
0
180
73
7
66
268
361
7
785
0
180
78
7
71
526
306
17
785
0
785
0
785
0
785
0
785
0
78
7
71
706
306
78
7
71
706
306
78
7
71
706
306
78
7
71
706
306
78
7
71
706
306
54
119
140
131
120
120
120
120
120
120
54
21
505
119
335
1,110
140
336
921
131
223
882
120
169
1,090
120
186
1,090
120
186
1,090
120
186
1,090
120
186
1,090
120
186
1,090
Controlling
Retained earnings
Others
Minority
Total shareholder's equity
1,214
38
1,176
1,214
4,608
558
4,050
0.1
4,608
5,111
3,468
1,644
5.2
5,116
5,554
3,895
1,659
4.4
5,559
6,828
5,081
1,746
1.3
6,829
7,953
6,207
1,746
1.3
7,954
9,171
7,425
1,746
1.3
9,172
10,472
8,725
1,746
1.3
10,473
11,818
10,072
1,746
1.3
11,819
13,207
11,461
1,746
1.3
13,208
45
Appendix
Summary of cost projections
V
=
Key commentary
Krafton OPEX build-up
(KRW bn, unless stated)
2020A
2021A
2022A
2023A
2024A
2025E
2026E
2027E
2028E
2029E
A Application fees / COGS
150.9
192.9
207.1
226.8
349.3
358.2
388.2
428.4
475.0
529.0
% of OPEX
16.8%
15.6%
18.8%
19.8%
22.9%
21.9%
21.9%
22.5%
23.2%
23.8%
% growth
(17.8%)
27.9%
7.4%
9.5%
54.0%
2.5%
105.5%
19.6%
22.4%
23.5%
PC
53.0
79.7
93.0
116.8
188.4
210.1
213.9
222.4
231.1
240.2
Mobile
61.2
71.2
65.9
64.5
91.2
99.7
125.9
157.6
195.5
240.3
Others
36.7
42.0
48.2
45.5
69.7
48.4
48.4
48.4
48.4
48.4
B Commissions
272.0
359.4
325.3
258.9
316.1
371.9
437.7
500.0
571.3
652.7
% of OPEX
30.3%
40.1%
36.3%
28.9%
35.3%
22.8%
24.7%
26.3%
27.9%
29.4%
% growth
45.3%
32.1%
(9.5%)
(20.4%)
22.1%
17.7%
17.7%
14.3%
14.3%
14.3%
% of revenue
16.3%
19.1%
17.5%
13.6%
11.7%
11.9%
13.1%
14.1%
15.3%
16.6%
42.6
82.2
129.7
66.1
101.4
99.0
99.0
99.0
99.0
99.0
% of OPEX
4.7%
9.2%
14.5%
7.4%
11.3%
6.1%
5.6%
5.2%
4.8%
4.5%
% growth
(2.4%)
93.1%
57.7%
(49.1%)
53.6%
(2.4%)
-
-
-
-
C Advertising expenses
D Depreciation of PPE
40.9
60.9
74.2
76.4
83.1
75.0
82.7
90.5
98.2
105.9
% of OPEX
4.6%
6.8%
8.3%
8.5%
9.3%
4.6%
4.7%
4.8%
4.8%
4.8%
% growth
13.7%
49.1%
21.9%
2.9%
8.7%
(9.7%)
10.3%
9.3%
8.5%
7.9%
E Amortizations
3.3
3.9
29.6
30.8
21.6
19.4
21.1
21.0
21.4
24.8
% of OPEX
0.4%
0.4%
3.3%
3.4%
2.4%
1.2%
1.2%
1.1%
1.0%
1.1%
% growth
(98.2%)
19.6%
659.7%
3.9%
(29.9%)
(10.2%)
8.7%
(0.2%)
1.9%
15.7%
A
⚫ All PC revenues assumed to be Steam, with 20%
fee applied
⚫ All Mobile revenues assumed to be from Google
Play & App Store, both with 30% fee applied
⚫ Other application fees (console platforms + thirdparty publishing) assumed flat at 5 years historical
average from 2020-2024A
B
Commission fees comprise outsourcing costs for
content creation and operations, and technical
infrastructure maintenance
⚫ Assumed 2025-2026E commission fee with twoyear average revenue growth from 2020-2021A to
reflect the ongoing investment phase
⚫ Commission fees for 2027–2029E are normalized to
the more sustainable 2022–2024A three-year
historical average
C
Source: Company filings
Application fees represent the platform revenue share
paid to platform
Assumed 3 years average flat from 2022-2024A
46
Appendix
Summary of cost projections
V
Key commentary
Krafton OPEX build-up (continued)
(KRW bn, unless stated)
F Salaries and bonuses
2020A
2021A
2022A
2023A
2024A
2025E
2026E
2027E
2028E
2029E
283.8
289.3
282.9
329.3
387.2
515.9
546.4
570.6
591.9
614.4
% of OPEX
31.7%
23.4%
25.7%
28.8%
25.4%
31.6%
30.9%
30.0%
28.9%
27.7%
% growth
95.9%
1.9%
(2.2%)
16.4%
17.6%
33.3%
5.9%
4.4%
3.7%
3.8%
Salaries
129.8
141.1
153.5
166.9
180.4
275.6
295.3
310.7
326.7
343.5
# of workers
2,786.0
2,933.0
3,088.0
3,250.0
3,400.0
5,038.0
5,138.0
5,238.0
5,338.0
5,438.0
Mixed wage per worker [KRW mm]
46.6
48.1
49.7
51.3
53.0
55.7
57.5
59.3
61.2
63.2
Bonuses
154.0
148.2
129.4
162.4
206.8
240.3
251.1
260.0
265.2
270.9
% of revenue
9.2%
7.9%
7.0%
8.5%
7.6%
7.7%
7.5%
7.3%
7.1%
6.9%
9.8
13.7
23.1
29.4
33.6
28.7
28.7
28.7
28.7
28.7
Post-employment benefit
G expense in profit or loss
% of OPEX
1.1%
1.5%
2.6%
3.3%
3.8%
1.8%
1.6%
1.5%
1.4%
1.3%
% growth
20.3%
39.8%
68.5%
27.7%
14.3%
(14.6%)
-
-
-
-
H Employee benefits
37.6
42.0
58.8
68.6
96.0
74.5
74.5
74.5
74.5
74.5
% of OPEX
4.2%
4.7%
6.6%
7.6%
10.7%
4.6%
4.2%
3.9%
3.6%
3.4%
% growth
40.6%
11.8%
40.0%
16.6%
39.9%
(22.4%)
-
-
-
-
I Share based compensation
36.8
167
(63.6)
27.6
102.4
54.1
54.1
54.1
54.1
54.1
% of OPEX
4.1%
18.6%
(7.1%)
3.1%
11.4%
3.3%
3.1%
2.8%
2.6%
2.4%
% growth
(37.9%)
353.7% (138.1%) (143.5%)
270.5%
(47.2%)
-
-
-
-
36.6
36.6
36.6
36.6
36.6
36.6
J Others
19
23.4
35.2
28.7
% of OPEX
2.1%
2.6%
3.9%
3.2%
4.1%
2.2%
2.1%
1.9%
1.8%
1.7%
% growth
(48.7%)
23.0%
50.6%
(18.6%)
27.7%
-
-
-
-
-
Total
896.6
1,234.7 1,102.4 1,142.5 1,527.3 1,630.7 1,766.7 1,894.6 2,034.1 2,196.1
F
Labor cost calculated by adding salaries and bonuses
⚫ Workforce derived from 2024A headcount of 3,400
and acquisition-driven additions1, with 100 annual
net hires
⚫ Wage per employee assumed in line with the 5-year
consensus global developer salary increase of 16%
⚫ Bonus expenses projected using the 3-year average
sales ratio from 2022–2024A, held flat across the
forecast period
G
H
I
J
Assumed 3 years average flat from 2020-2024A
Assumed 3 years average flat from 2022-2024A
Assumed 3 years average flat from 2022-2024A
Other operating expenses includes R&D expenses, rent
fees, and etc.
⚫ Assumed 5 years average flat from 2020-2024A
Source: Company filings
Note: 1 Acquisitions of ADK Holdings and Eleventh Hour Games
47
Company overview
Public market overview
I
Despite regulatory headwinds and early market skepticism on new titles, Krafton has demonstrated resilient growth,
supported by strong fundamentals, stable franchise revenue, and a growing pipeline of innovative releases
Share price performance post IPO
Price
(KRW '000)
Trading volume
('000 shares)
KODEX Game Industry ETF (rebased1)
Krafton
800
8,000
1
700
600
2
Jul 2022
Ban of BGMI in
India
500
A
400
3
7,000
6,000
Mar 2025
Release of inZOI
Dec 2022
Release of
Callisto Protocol
5,000
C
4,000
B
300
3,000
200
2,000
100
1,000
0
AugOct
2021
2021
Mar 2022
Aug 2022
Jan 2023
Jun 2023
Nov 2023
Mar 2024
Aug 2024
Jan 2025
Jun 2025
0
Nov 2025
1
2
Krafton
Krafton experienced heightened uncertainty after
the abrupt ban of BGMI in India, which disrupted
market sentiment and pressured the share price
Krafton share price showed volatility as
shareholder return initiatives were tempered by
criticism of Callisto Protocol
Krafton benefited from strong PUBG
performance and rising confidence in inZOI,
driving an uplift in its equity price
KRX
gaming
ETF2
The gaming sector faced regulatory pressure
from China’s minor restrictions and a postpandemic market correction
The broader market saw low confidence driven
by tight monetary policy, despite easing
gaming regulations in Korea
Investor sentiment improved as Korean gaming
companies delivered stronger earning, however
limited further upside due to geopolitical risks
1
Source: News article, KRX
Note: 1 As of 10 Aug 2021, 2 KODEX Game Industry ETF
3
48
Disclaimer
This presentation was prepared exclusively for the benefit and internal use of the Investment Analysis Club (“IAC”) to whom it is directly addressed and
delivered in order to assist the club in evaluation, on a preliminary basis, the feasibility of a possibility of investment execution and does not carry any right of
publication or disclosure, in whole or in part, to any other party. This presentation is for discussion purposes only and is incomplete without reference to, and
should be viewed solely in conjunction with, the oral briefing provided by the IAC presentation team. Neither this presentation nor any of its contents may be
disclosed or used for any other purpose without the prior written consent of IAC management team.
Contact: iac.mgmt.@outlook.com