South Korea’s gaming industry is undergoing a major transformation, with Nexon and KRAFTON solidifying their positions as the leading players. Despite challenges from the rise of Chinese games and a saturated market, both companies are estimated to have posted record-breaking earnings last year, bolstered by robust performance in overseas markets.
On Jan. 13, industry insiders reported that Nexon likely became the first South Korean gaming company to exceed 4 trillion won in annual revenue, with estimated sales of 4.13 trillion won ($2.82 billion) for 2024. KRAFTON also achieved its best-ever results, with revenue of 2.7757 trillion won ($1.89 billion) and an operating profit of 1.2399 trillion won ($847 million). Analysts attribute these milestones to strong market performance in China and India, respectively.
Nexon’s success was largely driven by Dungeon & Fighter Mobile. According to market research firm Sensor Tower, the game, launched in China in May 2024, generated more than 1.52 trillion won ($1.06 billion) in revenue within just seven months. Nexon plans to release The First Berserker: Khazan, a new AAA title based on the Dungeon & Fighter intellectual property, in March. The company anticipates the game will gain significant traction in the Chinese market.
Meanwhile, KRAFTON continues to find global success with its flagship title, PUBG: Battlegrounds. In particular, PUBG Mobile India (BGMI) has become a cultural phenomenon in India, surpassing 300 million cumulative downloads and generating over $200 million in revenue last year. To further cement its position in the region, KRAFTON has invested heavily in localized content, including collaborations with Bollywood films and large-scale esports tournaments.
Looking ahead, KRAFTON aims to diversify its revenue streams by integrating AI-powered virtual characters, dubbed “Co-Playable Characters” (CPC), into its games. These interactive characters, designed to engage with players through conversations and collaborative gameplay, will be incorporated into the PUBG series and the life simulation game inZOI.
