South Korean video game publisher KRAFTON, Inc. Is continuing its expansion and diversification, building on the success of titles like PUBG: BATTLEGROUNDS. Founded in , the company serves as a holding entity for a growing network of game development studios, currently numbering 19 and aims to deliver unique and engaging gaming experiences.
From Bluehole to KRAFTON: A Strategic Evolution
KRAFTON’s origins trace back to Bluehole, established in Seoul in by Chang Byung-gyu. The creation of KRAFTON was a direct response to the phenomenal success of PUBG: Battlegrounds, which spurred both investment from Tencent Holdings and a period of studio expansion and acquisition. The company was specifically designed to act as a parent organization, streamlining operations and fostering innovation across its various subsidiaries. The name “Krafton” itself was chosen to evoke the imagery of medieval craft guilds, reflecting a commitment to skilled artistry in game development.
A Diverse Portfolio of Studios and IPs
KRAFTON doesn’t operate as a single monolithic developer. Instead, it functions as a holding company overseeing a diverse collection of independent studios. These include well-known names like PUBG Studios, Striking Distance Studios, Unknown Worlds Entertainment, and Tango Gameworks, alongside others such as Bluehole Studio, RisingWings, 5minlab, Dreamotion, ReLU Games, Flyway Games, inZOI Studio, JOFSOFT, Eleventh Hour Games, and more recently, 9B STUDIO. Each studio maintains its own creative direction while benefiting from the resources and support of the larger KRAFTON organization.
This structure allows KRAFTON to cultivate a broad portfolio of intellectual property (IP). Key titles include the PUBG franchise – encompassing PUBG: BATTLEGROUNDS, PUBG MOBILE, and PUBG: BLINDSPOT – as well as inZOI, Subnautica, MIMESIS, Hi-Fi Rush, Dinkum, TERA, and My Little Puppy. The company’s strategy centers on expanding its platform reach and service offerings to attract a wider audience.
Financial Performance and Ownership
As of , KRAFTON reported revenue of ₩2.7 trillion (approximately US$1.9 billion). The company is publicly traded on the Korea Stock Exchange (KRX: 259960). Ownership is distributed among several key stakeholders. Chang Byung-gyu, the founder of Bluehole and chairman of KRAFTON, holds a 14.89% stake. Tencent/Image Frame Investment owns 13.86%, and the National Pension Service holds 7.10%. Treasury stock accounts for a further 6.95% of ownership.
Focus on Innovation and Emerging Technologies
KRAFTON emphasizes a tech-forward approach to game development, with a stated commitment to exploring new possibilities that enhance the gameplay experience. This includes active investigation into technologies like artificial intelligence (AI) and other emerging platforms. The company’s goal is not simply to create games, but to continuously improve and innovate within the gaming landscape. The 19 studios are encouraged to embrace new challenges and leverage cutting-edge technologies in their projects.
Leadership and Structure
Kim Chang-han serves as the CEO of KRAFTON, having previously held the same role at PUBG Corporation (now PUBG Studios). Chang Byung-gyu holds the position of chairman. This leadership structure reflects the company’s origins and its continued focus on the PUBG franchise while simultaneously fostering growth and diversification across its broader portfolio of studios and IPs.
IPO and Public Listing
The decision to pursue an initial public offering (IPO) was announced in , with initial approval for listing on the Korea Stock Exchange secured in . This move signaled KRAFTON’s ambition to further expand its reach and solidify its position as a leading global game publisher.
KRAFTON’s strategy appears to be centered on a balance of leveraging the success of established franchises like PUBG while simultaneously nurturing a diverse ecosystem of independent studios and exploring new technological frontiers. The company’s financial performance and ownership structure suggest a stable foundation for continued growth and innovation in the competitive video game market.
