Visitors enjoy gaming at G-Star 2024, South Korea’s largest gaming exhibition, which opened on November 14, 2024, at BEXCO in Busan. (Yonhap)
SEOUL, Feb. 14 (Korea Bizwire) — South Korea’s gaming industry saw a stark divide in financial performance for 2024, with companies’ fortunes hinging on the success of their overseas ventures. While Nexon and Krafton cemented their dominance, NCSoft faced restructuring, and Netmarble showed signs of recovery after years of losses.
According to year-end earnings reports released by major gaming companies through February 13, Nexon became the first South Korean game developer to surpass 4 trillion won ($2.76 billion) in annual revenue.
A significant portion of this growth stemmed from Dungeon & Fighter Mobile, which launched in China through Tencent in May 2024 and quickly became a massive hit. Revenue from Nexon’s Dungeon & Fighter intellectual property (IP) surged 53% year-over-year. Additionally, The First Descendant, a looter shooter introduced to the global market in July, contributed to Nexon’s record-breaking year.
For Krafton, India was the key to its remarkable performance. The company posted 2.71 trillion won ($1.87 billion) in revenue, a 41.8% year-over-year increase, with an operating profit of 1.3 trillion won ($897 million), surpassing Nexon’s 1.12 trillion won ($772 million).
Krafton, long reliant on its PUBG franchise, has maintained an upward trajectory thanks to Battlegrounds Mobile India (BGMI), which has become a cultural phenomenon in India since its 2021 release.
Krafton announced on January 9 that it unveiled ‘CPC,’ a technology co-developed with NVIDIA, at CES 2025, the world’s largest IT and electronics exhibition. Lee Kang-wook, head of Krafton’s Deep Learning Division, introduced ‘CPC’ during the event. (Yonhap)
With plans to invest heavily in new IPs and publishing efforts, Krafton has set an ambitious goal of reaching 7 trillion won ($4.83 billion) in revenue and doubling its corporate valuation within five years.
Meanwhile, Netmarble, after two consecutive years of annual losses, staged a strong recovery in 2024. The company recorded an operating profit of 215.6 billion won ($149 million) and revenue of 2.66 trillion won ($1.83 billion), a 6.5% increase year-over-year.
This turnaround was driven by titles such as Solo Leveling: ARISE and Marvel Contest of Champions, which successfully attracted both domestic and international players. Notably, Netmarble’s revenue was overwhelmingly global, with 83% of its sales coming from overseas markets, including North America (46%), Europe (15%), and Southeast Asia (9%).
Nexon’s Key Upcoming Game Pipeline (Image courtesy of Nexon)
In contrast, NCSoft found itself in a downturn. The company posted its first-ever annual operating loss since its stock market listing, reporting 1.58 trillion won ($1.09 billion) in revenue, a 1.09 trillion won ($752 million) operating loss, and 941 billion won ($649 million) in net income.
NCSoft’s flagship Lineage mobile franchise saw a dramatic decline, with mobile gaming revenue falling 22% year-over-year to 936.7 billion won ($646 million). Lineage W, once a top revenue generator, suffered a 74.8% revenue drop, reducing its sales to just a quarter of its peak levels. The company’s reliance on the domestic market also increased, with South Korea’s revenue share rising from 63.2% in 2022 to 65.5% in 2024.
NCSoft’s struggles were exacerbated by a costly restructuring effort, which included layoffs and voluntary retirements, leading to significant one-time expenses. Aware of the limitations of its Lineage-centric portfolio, NCSoft is pivoting toward new global titles, with LLL, Aion 2, Tactan, and the publishing title Breakers set to launch in 2025 and beyond.
Kakao Games also faced a downturn, posting 738.8 billion won ($510 million) in revenue, a 27.9% decline, falling below the 1 trillion won ($690 million) mark it had maintained from 2021 to 2023. The company barely avoided an annual operating loss with a 6.5 billion won ($4.5 million) operating profit, while its net loss widened to 121 billion won ($83 million).
Since the launch of Odin: Valhalla Rising in 2021, Kakao Games has struggled to produce a lasting hit. However, the company is banking on upcoming releases such as Chrono Odyssey and ArcheAge Chronicle to regain its footing in the global market, with an emphasis on mid-core gaming.
As 2025 unfolds, the battle for market dominance in South Korea’s gaming industry continues to intensify, with global expansion proving to be the key differentiator between industry leaders and struggling incumbents.
* Note to editor: The KRW-to-USD exchange rate referenced in the article is based on the rate applicable on the date of publication.
Ashley Song (ashley@koreabizwire.com)
