Krafton Separate Financial Statements: 2025

Key insights

6 takeaways

01
Krafton reported total revenue of ₩2.89 trillion for 2025, with 83.31% of earnings derived from the Asian market.See it on page 8
02
Annual profit declined to ₩735.15 billion, resulting in basic earnings per share of ₩16,386.See it on page 105
03
The company maintains a strong balance sheet with ₩8.16 trillion in total assets, ₩7.26 trillion in equity, and a conservative debt-to-equity ratio of 12.34%.See it on page 6
04
Strategic investments in subsidiaries, associates, and joint ventures increased to ₩2.76 trillion, though this included a ₩68.4 billion impairment loss related to Unknown Worlds Entertainment, Inc.See it on page 66
05
Operating cash flow remained robust at ₩989.38 billion, providing sufficient liquidity for capital contributions and treasury share acquisitions.See it on page 10
06
Internal audits confirmed effective financial controls, and the company is currently preparing for the 2027 adoption of K-IFRS 1118.See it on page 127

Summary

Krafton, Inc. demonstrated robust financial health and operational growth throughout the 2025 fiscal year, as confirmed by an unmodified audit opinion from KPMG Samjong. The company reported total revenue of approximately ₩2.89 trillion, fueled by strong performance in the mobile and PC gaming sectors, with the Asian market accounting for 83.31% of total revenue. Despite this top-line growth, profit for the year reached ₩735.15 billion, reflecting a decline from the previous year’s performance, which resulted in basic earnings per share falling to ₩16,386. Total assets expanded to ₩8.16 trillion, supported by a strengthened equity position of ₩7.26 trillion and a conservative debt-to-equity ratio of 12.34%.

The company’s strategy remains heavily focused on aggressive portfolio expansion, with investments in subsidiaries, associates, and joint ventures rising to ₩2.76 trillion. This growth was accompanied by rigorous impairment testing, particularly regarding Unknown Worlds Entertainment, Inc., which necessitated a ₩68.4 billion impairment loss. Management continues to navigate complex financial commitments, including contingent considerations for acquisitions and various shareholder agreements involving put and call options. While net gains on financial instruments saw a significant contraction compared to 2024, operating cash flows remained strong at ₩989.38 billion, providing the liquidity necessary to support ongoing capital contributions and treasury share acquisitions.

Adhering to K-IFRS standards, the company maintains a sophisticated framework for revenue recognition and asset valuation, relying on critical estimates regarding user behavior and market fair value. Internal controls over financial reporting were assessed as effective, with no material weaknesses identified. Looking forward, Krafton is preparing for the 2027 adoption of K-IFRS 1118 and continues to manage its global operational risks through active monitoring of market, credit, and liquidity factors. The company’s 2025 financial position reflects a transition toward long-term strategic investment, balancing substantial capital deployment with disciplined internal governance.