Krafton Inc. unveiled plans to invest 300 billion won ($230 million) annually in game development over the next five years, targeting expansion of its franchise portfolio beyond its hit battle royale titles. The South Korean gaming powerhouse will allocate approximately $2.3 billion through 2029 for new projects.
The aggressive investment strategy follows Krafton’s stellar financial performance in 2024. The company reported a net income of 1.3 trillion won ($1 billion), marking a 119% increase from the previous year. Revenue climbed 42% to 2.7 trillion won, while operating profit surged 54% to 1.18 trillion won.
The investment will focus on acquiring major gaming franchises and enhancing the company’s production capabilities. However, analysts remain cautious about execution risks and increasing competition in the global gaming market.
Despite a slowdown in the fourth quarter, with revenue dropping 14% to 617.6 billion won from the previous quarter, Krafton managed to post a 304% jump in quarterly net profit, primarily due to investment gains and reduced impairment losses.
The company will hold its annual shareholder meeting on March 26 in Seoul, where it will seek approval for its financial statements and changes to its articles of incorporation.
