Written by Ki-moon Lee, published by Young-sa Kim.
KRAFTON is the hottest issue in the stock market right now. Krafton, a ‘decacon startup’ with a corporate value of more than $10 billion, is in the process of listing.
The performance of this company, which is unfamiliar to the general public, is surprising above all. In the case of last year, sales were 1.67 trillion won based on the consolidated financial statements, and net profit was 556.3 billion won.
The size of the public offering to be held in July is between 4.607.5 trillion won and 5.6035 trillion won. The market is predicting that it will far exceed the largest public offering (4.8881 trillion won) in the history of the Korean IPO recorded by Samsung Life in 2010.
The market capitalization immediately after the public offering is expected to reach up to 29.707 trillion won. There is also a prediction that NCsoft’s position as the leader in the game industry, which seemed to be impregnable, will also be shaken.
Krafton is a game company that produced the survival shooting game ‘Battleground’. The game has no middle ground. It’s either great or it’s crap. Krafton also suffered numerous failures. Large and small games that cost as much as tens of billions of won and as little as hundreds of millions of won have been forgotten.
‘PlayerUnknown’s Battlegrounds’ was released in 2017 after 10 years of challenge. ‘Battleground’ rewritten the history of Korean games. It sold more than 70 million PC titles worldwide and exceeded 1 billion mobile subscribers worldwide. The box office was successful all over the world, and ‘Krafton’, which had stayed on the fringes of the domestic game industry, quickly emerged as a global game company.
This book focuses on the 10-year history of development of ‘Battleground’, which represents Krafton in conjunction with the listing. From the founding of Krafton in 2007 to the release of PUBG, the intense game development process and painful growth process of 10 years are unfolding like a documentary.
The author read internal e-mails from inside and outside for 10 years with the cooperation of management and even interviewed insiders to capture detailed internal affairs and behind-the-scenes stories that companies are reluctant to reveal.
One of the founders and the largest shareholder, Jang Byung-gyu, chairman of the board of directors, also includes the thoughts he had while leading Krafton at the end of each chapter.
According to the author, Krafton aspired to be the first leader, not a fast chaser. It is a word that encapsulates Krafton’s differentiation. In this regard, Chairman Jang Byeong-gyu says this in ‘About the beginning’ at the end of the book.
“Going on a path that no one has taken is a repetition of self-confidence and doubt. Since there is nothing to follow, you have no choice but to constantly doubt yourself. Through doubt and trial and error, he becomes a certain criminal different from others. However, pride and strong conviction can rather be the entrance to the abyss. If doubt and confidence form a virtuous circle, the first path will lead to great success. For the first time, focus on speed rather than prediction. Focus on execution rather than planning. Because it is the first time, it is difficult to predict and plan. There’s more we don’t know than we know. also afraid There is always a lack of time and energy to think about the essentials. Therefore, various trials and errors and challenges must be carried out at the same time. You have to accept losing local battles and failing countless attempts.”
In 2007, Jang Byeong-gyu, the pronoun of first-generation venture entrepreneurs, Kim Kang-seok, who was in charge of service planning and game distribution at Neowiz, Park Yong-hyeon, Hwang Chul-woong, Kim Jeong-han, and Park Hyeon-gyu, who had experience in ‘Lineage 2’ ) was founded. The development team had to deal with the executives who wanted to be deeply involved in the production and the users who only found game errors, while the management had to deal with the developers who did not meet their expectations and the publishers who hesitated to invest.
The book introduces the principles that Chairman Jang Byeong-gyu adhered to to the end even during the battles fought by the development team and management inside and outside.
▲ You must be able to change your vision
“It is more difficult to change a vision than to create it. Managers need to get in the habit of rethinking their vision. There are many organizations in the world, but an organization without customers has no value. Organizations must not stop changing in line with customers and markets, and big organizational changes can start with a change of vision.”
In 2013, when the mobile game era opened, Krafton changed its vision of becoming a ‘master of online PC games’ to a ‘master of game production’.
▲ Investing is the act of buying trust
“Investing is likely to look like an act of fooling a lot of people for a while. The fact of receiving the investment and the process and results after the investment remain. Investing is an act of trust and trust, and it is an act of building a reputation and a track record in a collaborative society. We must not forget that consistent behavior, trust and trust are more important than contracts.”
Creating a product within a set deadline is an obligation and a promise that the development team must keep. This is because publishers can prepare marketing according to the development schedule and investors can consider follow-up investments.
However, unlike the initial plan of ’30 billion won over 3 years’, ‘Terra’ took 40 billion won of time and money for 4 years. As a result, it was recorded as a failed project.
▲ Work with talented people, not workers
“In the knowledge industry, talent is judged by performance rather than working hours, must consider the whole organization with a sense of community, must be able to set strict rules for oneself, must have strong motivation and will, must learn from failure, and collaborate must be specialized in
Crafton does not follow the relatively free game industry culture, but runs a campaign to comply with commuting hours and pressures the development team to show results within the production deadline. Those who were dissatisfied with such an organization left without any regrets and recruited external personnel.
After the official release of Terra, users continued to leave in 2011, and in 2016, when sales of Devilian developed by Geno Games fell, restructuring was boldly carried out. Prior to the production of Elion and Battleground, the industry’s best producer and creator of Battle Royale game After turning to mobile game development, he acquired game companies such as Gino Games, Squall, and Phoenix, and conducted an allied operation.