Up to 300 Billion KRW Annual Investment Possible Based on Internal Capabilities
Record-High Annual Performance Last Year Driven by Battlegrounds
Krafton announced that it will invest up to 300 billion KRW annually, totaling 1.5 trillion KRW, in new game development over the next five years. On the 26th, at the regular shareholders' meeting held at Seoul National University of Education in Seocho-gu, Seoul, Krafton CEO Kim Chang-han stated, "Last year, we invested 140 billion KRW in new development, and considering our internal capabilities, we are confident that we can invest up to 300 billion KRW annually for five years, reaching about 1.5 trillion KRW in self-development investment."
Krafton recorded its highest-ever performance last year with annual sales of 2.7098 trillion KRW and operating profit of 1.1825 trillion KRW. This was thanks to the revenue driven by its flagship 'Battlegrounds' series. Krafton also announced that it aims to grow the life simulation game 'inZOI,' which is set to release an 'early access' version on the 28th, into a long-term hit game.
Regarding 'inZOI,' CEO Kim said, "We see great potential in it," adding, "We view it as a project that can be significantly developed into a long-term franchise like EA's 'The Sims' series." He continued, "Although it is difficult to definitively predict the market response to inZOI, being number one on the Steam wishlist is very encouraging."
The development status of a game based on fantasy novel 'The Bird That Drinks Tears' by author Lee Young-do, currently being developed at a studio in Canada with a target release in 2027, was also mentioned. CEO Kim said, "Since it is an intellectual property (IP) with many fans in the Korean market, we aim to properly launch it globally and development is progressing smoothly. However, due to recent poor global market performance of triple-A (blockbuster) games, we are improving gameplay aspects and there is some possibility of schedule adjustment."
He also revealed plans for shareholder returns. Chief Financial Officer (CFO) Bae Dong-geun said, "Three years ago, we announced a three-year shareholder return policy and have conducted treasury stock acquisition and cancellation. In response to recent market environment changes, we will actively consider dividends more than before. We expect to announce a new three-year shareholder return policy at next year's shareholders' meeting." He emphasized, "We have a sense of mission and responsibility to recover the stock price to the IPO level by releasing and succeeding with various IPs, including Battlegrounds (PUBG)."
At the shareholders' meeting, Krafton also newly appointed Yoon Goo, Vice President of Autodesk Digital & e-Commerce, as an audit committee member.
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