Krafton to Submit IPO Application This Month

Krafton, the South Korean developer and publisher behind the PUBG franchise, has navigated significant corporate milestones between 2021 and 2026. In early 2021, the company prepared for an initial public offering on the Kospi bourse, driven by a robust financial performance in 2020. During that fiscal year, Krafton reported $1.49 billion in total revenue, representing a 54% year-over-year increase, alongside an operating profit of $690 million. While PC and console revenue declined by 41% to $237 million, mobile earnings surged by 145% to $1.2 billion, underscoring the company's heavy reliance on the mobile sector.

By 2026, the company’s focus shifted toward managing its portfolio of acquired studios and fulfilling long-standing contractual obligations. Following a legal dispute regarding the acquisition of Unknown Worlds, Krafton agreed to pay a $250 million performance-based bonus to the studio. This payment was triggered by the successful early access launch of Subnautica 2 in May 2026, which sold over 4 million copies within its first five days, generating approximately $100 million in gross revenue.

The resolution of this payment follows a period of internal friction, including a court-ordered reinstatement of Unknown Worlds executives whom Krafton had previously dismissed. These events highlight the complexities of Krafton’s growth strategy, which balances aggressive mobile-first expansion with the integration and management of high-profile development teams. The company continues to operate as a major entity within the global gaming industry, navigating both public market expectations and the operational challenges of studio acquisitions.