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Key Takeaways
Backed by the solid cash-cow status of its flagship IP 'PUBG: BATTLEGROUNDS', Krafton has ushered in an era of KRW 3 trillion in annual revenue.
Its next-generation anticipated title, 'inZOI', surpassed 1 million copies in global sales following its Early Access launch, establishing itself as a fresh alternative in the life simulation genre.
On the other hand, 'Dark and Darker Mobile' (project name: Abyss of Dungeons), which faced licensing issues and gameplay overhaul phases, underwent pipeline streamlining and project cancellation rather than an overextended global push.
Anchored by a selective and focused strategy, the company is realistically recalibrating its major release schedules and console porting roadmaps.
As of the close on September 28, the domestic financial markets saw the KOSPI close at 6,889.74 and the KOSDAQ at 846.58.
The KRW/USD exchange rate closed at 1,362.80 KRW. According to Daily Stock's proprietary Fear & Greed Index, the KOSPI is currently in the Neutral zone (40.5), while the Nasdaq remains in the Fear zone (37).
Current Market Situation
The domestic stock market continues to witness sector divergence across major large-cap plays such as semiconductors, secondary batteries, and financials.
Foreign capital flows in the KOSPI market are reacting sensitively to USD volatility and futures position liquidations, keeping a lid on the index's upside.
Amid such macro uncertainties, Krafton is drawing significant attention as an unrivaled export-oriented platform company with an overseas revenue share exceeding 90%.
With the KRW/USD exchange rate staying elevated around the 1,360 KRW mark, favorable FX tailwinds continue to benefit the company's operating cash flows, where USD settlements account for the overwhelming majority.
Following its Steam Early Access debut in March 2025, 'inZOI' has rolled out macOS versions and free DLC updates sequentially.
The official release on console platforms including PlayStation 5 (PS5) has been fine-tuned to the first half of 2027 to maximize product quality.
Meanwhile, 'Dark and Darker Mobile' previously conducted soft-launch testing following the termination of the licensing agreement with the original IP owner and an internal renaming.
However, based on global market hit potential and internal profitability criteria, the company made the strategic decision to decisively terminate the project.
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Financial Analysis
Propelled by ongoing content collaborations for the PUBG IP and expansion in the Indian market (BGMI), Krafton achieved record annual revenue of KRW 3.3266 trillion in 2025 since its founding.
Annual operating profit reached KRW 1.0544 trillion, proving its sustained operational strength with over KRW 1 trillion in operating profit for two consecutive years.
PC platform revenue grew rapidly to KRW 1.1846 trillion, boosted by global brand collaborations such as Porsche and initial package sales of 'inZOI'.
The mobile platform also built a solid revenue base of KRW 1.7407 trillion, driven by an increase in BGMI in-app paying users and advanced live services.
| Financial Metric | FY2024 Actual | FY2025 Consolidated | YoY Change / Remarks |
|---|---|---|---|
| **Annual Revenue** | KRW 2.7098 T | KRW 3.3266 T | +22.8% (All-time high) |
| **Annual Operating Profit** | KRW 1.1824 T | KRW 1.0544 T | -10.8% (Reflects one-off welfare fund) |
| **PC Segment Revenue** | KRW 955.1 B | KRW 1.1846 T | +24.0% (PUBG growth & inZOI contribution) |
| **Mobile Segment Revenue** | KRW 1.4964 T | KRW 1.7407 T | +16.3% (BGMI traffic expansion) |
| **Cash & Cash Equivalents** | KRW 3.7720 T | KRW 3.1807 T | Large-scale M&A and new title investments |
In Q4 2025, profit margins temporarily contracted due to one-off expenses, including preparations for moving to the new Seongsu-dong headquarters and a one-time contribution of KRW 81.6 billion to the employee joint welfare fund.
However, the cash generation capability of its core business remains robust, supported by liquid assets in the KRW 3 trillion range.
Valuation
Krafton's share price is currently trading in the unverified daily close band (last confirmed range around KRW 240,000–250,000) as of September 28, 2026.
Based on 12-month forward EPS (TTM EPS of approximately KRW 18,846), the Price-to-Earnings Ratio (PER) sits at roughly 12–13x.
This represents a significant undervaluation relative to traditional domestic large-cap game peers like NCSoft and Pearl Abyss (PER 18–25x).
Furthermore, compared to global major publishers such as Tencent, Electronic Arts (EA), and Capcom (average PER 18–22x), the discount rate is substantial given its cash-generating capabilities.
While KOSPI 200 large-cap tech names broadly face multiple compressions over export slowdown concerns, Krafton maintains a healthy, virtually debt-free balance sheet.
Ongoing share buyback and cancellation programs led by the Board of Directors act as a key support factor providing strong downside price rigidity.
Expert & Institutional Analysis
Major domestic and global securities firms analyze that the valuation discount factor labeled 'single-dependency on PUBG' is entering a phase of gradual resolution.
This is because 'inZOI' demonstrated the viability of IP franchising within the life simulation genre through its successful initial foothold across North American and European markets.
Analysts also view the cancellation of 'Dark and Darker Mobile' favorably as strategic risk management that promptly stemmed losses.
Rather than remaining tied to an external license fraught with legal dispute risks, the company can now concentrate its resources on internal core development studios.
From an institutional flows perspective, attention is centering on Krafton's attractiveness as a defensive growth stock generating stable FX revenues in a 1,360 KRW exchange rate environment.
Market watchers note that coupled with the Bank of Korea's benchmark rate-cutting stance, room for increased cash dividends and shareholder returns could further catalyze foreign passive capital inflows.
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Risk Factors
The most fundamental risk remains the potential aging of the PUBG IP, which still accounts for more than 80% of total revenue.
Although long-term live-service capabilities are defending traffic, traffic fluctuations in a single title have an immediate impact on company-wide earnings.
Second is the risk of a short-term momentum vacuum as the console release of inZOI has been deferred to the first half of 2027.
Proving the monetization model of paid recurring DLC to transition the game from initial package sales into a long-term live service also remains a challenge.
Third is the scenario of a sharp decline in the KRW/USD exchange rate along with weakened consumer purchasing power due to deteriorating global macro conditions.
If the exchange rate stabilizes rapidly and shifts toward KRW appreciation, foreign-denominated translation gains could diminish.
Investment Outlook
Krafton is navigating a transitional phase of structural enhancement, leveraging its solid cash-generating power to diversify its portfolio.
Its operational strategy stands out for promptly shelving projects with uncertain hit potential and channeling resources into high-conviction IPs rather than pursuing reckless expansion.
Its divergent trend from cyclical, manufacturing-oriented plays within the KOSPI 200 large-cap universe offers positive portfolio-hedging merits.
Rather than pursuing short-term price surges, a long-term investment horizon is appropriate, taking into account its ability to generate over KRW 1 trillion in annual operating profit alongside strengthening shareholder returns.
FAQ
Q1. What is the current operational status of 'inZOI' and its upcoming console release schedule?
Following its Steam Early Access launch in March 2025 and macOS release in August, it surpassed 1 million units in cumulative global sales. The official launch on PlayStation 5 and other console platforms is scheduled for the first half of 2027 to maximize overall polish.
Q2. What is the latest update on the 'Dark and Darker Mobile' project?
After the licensing agreement with Ironmace was terminated, the project was renamed 'Abyss of Dungeons' and underwent soft-launch testing in select regions. However, following a reassessment of its global competitiveness, development and release were ultimately canceled.
Q3. Why did operating profit decline slightly in 2025 despite record-high revenue?
Annual revenue rose 22.8% YoY to KRW 3.3266 trillion, but annual operating profit adjusted slightly to KRW 1.0544 trillion due to Q4 one-off expenses, including an KRW 81.6 billion one-time contribution to the joint employee welfare fund ahead of moving to the new Seongsu headquarters.
Q4. How does the exchange rate hovering around 1,360 KRW affect Krafton's earnings?
Krafton generates more than 90% of its revenue from overseas markets. A strong KRW/USD exchange rate environment produces favorable currency translation effects on both PC and mobile revenues settled in USD.
Q5. How attractive is Krafton's current valuation?
At approximately 12–13x 12-month forward PER, the stock trades at a deep discount compared to domestic and global gaming peers (18–25x). Solid cash and cash equivalents in the KRW 3 trillion range alongside consistent share buybacks provide robust downside price support.