The South Korean gaming industry witnessed mixed financial results in 2024, with leading developers such as Nexon, and Krafton achieving strong performances, while NCSOFT and Kakao Games faced financial difficulties. Here are the performances of Korean companies based on their latest financial results ending in December 2024:
Nexon:
Nexon Co. made history by becoming the first Korean gaming company to surpass 4 trillion won ($2.8 billion) in annual sales. This marked a 5% increase from the previous year, driven by the success of its long-standing franchises: Dungeon & Fighter, MapleStory, and FC. Together, these games contributed 74% of Nexon’s total revenue.
The standout performer was Dungeon & Fighter, which saw a 53% year-over-year revenue increase, primarily due to the successful launch of its mobile version in China in May. MapleStory also performed well internationally, with a 24% rise in global revenue, even as its domestic market faced challenges.
Looking ahead, Nexon plans to release seven new games by 2027, each with the potential to generate over 10 billion yen in annual revenue. CEO Junghun Lee emphasized the company’s commitment to sustaining its flagship franchises while also forming strategic partnerships, such as its collaboration with Tencent for hyperlocalization and co-development efforts. Upcoming releases include The First Berserker: Khazan (March 28, 2025) and MABINOGI MOBILE (March 27, 2025).
Krafton:
Krafton Inc., known for its PUBG franchise, delivered an exceptional financial performance in 2024. The company’s revenue surged 41.8% year-over-year to ₩2.7 trillion ($1.9 billion), with operating profit climbing 54% to ₩1.2 trillion ($811.9 million).
Mobile gaming remained Krafton’s primary revenue stream, accounting for 62.4% of total earnings. Battlegrounds Mobile India (BGMI) played a crucial role in boosting mobile revenue by 35.7%, while PUBG’s PC version saw its best revenue performance since 2018, generating $648.3 million.
CEO Kim Chang-han attributed the company’s strong earnings to the resurgence of BGMI following the lifting of its 10-month ban in India. Looking forward, Krafton is focusing on new franchise IPs and artificial intelligence (AI) integration, particularly with Co-Playable Characters (CPCs) in PUBG. Additionally, the company acquired Tango Gameworks, investing ₩300 billion ($206 million) annually in game development over the next five years.
Netmarble:
Netmarble Corp. reported solid growth in 2024, with annual revenue reaching ₩2.66 trillion ($1.9 billion), marking a 6.5% increase. The company’s operating profit also saw a significant boost, hitting ₩215.6 billion.
A key driver of this success was the mobile title Solo Leveling: ARISE, based on the popular Korean webtoon. Netmarble’s overseas revenue accounted for 83% of its total earnings, reflecting its strong international market presence.
Looking ahead, Netmarble plans to launch nine new games in 2025, including high-profile titles such as Game of Thrones: Kingsroad and Seven Deadly Sins: Origin. The company is also expanding the Solo Leveling franchise with a dedicated Steam version to cater to PC gamers.
NCSOFT:
NCSOFT Corp. faced financial struggles in 2024, reporting an operating loss of ₩109.2 billion ($75.35 million). The company dropped to fourth place among Korean game publishers, with revenue declining 11.3% year-over-year to ₩1.58 trillion ($1.09 billion).
Industry analysts suggest that NCSOFT’s strategy of releasing multiple titles with similar gameplay mechanics failed to resonate with players. Co-CEO Park Byung-moo acknowledged this issue, citing that Lineage Like, a spin-off of its flagship MMORPG Lineage, was seen as repetitive by gamers.
However, Lineage W saw a sales rebound, thanks to its Reboot’s World update, and royalty sales increased by 26%. The company is focusing on global expansions and customer-centric operations while committing to returning 30% of its consolidated net income to shareholders as dividends over the next three years.
Kakao Games:
Kakao Games struggled in 2024, with revenue declining by 14% to ₩738.8 billion ($509.77 million) and operating profit plummeting by 92% to ₩6.5 billion ($4.49 million). The company implemented a downsizing strategy, streamlining operations and divesting unprofitable businesses to refocus on major game development projects.
Despite these setbacks, Kakao Games has high hopes for 2025, with several new titles lined up, including the open-world RPG Chrono Odyssey and action roguelite shooter Section 13. The company is also leveraging global IPs, such as Path of Exile 2, which it will publish in South Korea.
Executives noted that Kakao Games aims to expand its presence in North America and Europe, focusing on PC and console games while taking a measured approach to the Chinese market due to regulatory challenges.
Shift Up:
Shift Up had a stellar year in 2024, reporting a 30.4% revenue increase to ₩219.8 billion ($151.4 million) and an operating profit surge of 33.8%.
The company’s PlayStation 5 exclusive Stellar Blade significantly contributed to its earnings, generating $43.2 million in royalties. Regular updates and collaborations, such as the Nier: Automata DLC, helped maintain the game’s popularity. The company anticipates even stronger performance with the upcoming PC version, targeting Asian markets.
Despite a 7% decline in revenue, Goddess of Victory: Nikke remained Shift Up’s primary revenue source, contributing 69.6% of total earnings. The company has set its sights on the Chinese market for further expansion in 2025.
In July 2024, Shift Up raised ₩435 billion ($320 million) through its IPO, marking the largest gaming IPO in South Korea in over two years. The company plans to expand its workforce and unveil new projects, including Project Witches, which is expected to launch after 2027.
Conclusion
The Korean gaming industry in 2024 showcased a stark contrast between companies that successfully capitalized on strong IPs and those that struggled with market saturation and strategic missteps. Nexon, Krafton, and Shift Up thrived by leveraging established franchises and expanding into global markets, while NCSOFT and Kakao Games faced challenges due to declining player engagement and internal restructuring efforts.
Looking ahead, 2025 promises further innovation, with major Korean publishers unveiling new titles, investing in AI-driven gaming experiences, and targeting broader global markets to sustain growth.
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