(MHN Park Seong-ha) Krafton is enjoying a prosperous period, having achieved its highest-ever performance to date.

In the first quarter of 2025, the company reported a 31.3% year-on-year increase in revenue, reaching 874.2 billion KRW, and a 47.3% increase in operating profit, amounting to 457.3 billion KRW.

However, it remains uncertain whether such strong performance can be maintained. Various external factors must be considered.

Krafton's mobile division generated 532.4 billion KRW, accounting for about 60% of its total revenue.

Notably, the growth of BGMI (Battlegrounds Mobile India) in the Indian market has been striking.

However, in 2022, the Indian government temporarily suspended BGMI's services due to security concerns, meaning that the regulatory risk remains present.

According to Krafton's official press release in April, the company revealed that 95% of its global revenue comes from international markets. This suggests that fluctuations in exchange rates have a direct impact on its performance.

Specifically, a stronger Korean currency could decrease the won-equivalent value of overseas revenue, negatively affecting the results. Krafton appears to be exploring various strategies to manage such risks regarding exchange rate.

China, one of the largest gaming markets in the world, along with India, is crucial for Krafton. 

However, China’s tightening of gaming regulations and restrictions on game licenses could pose challenges for market entry.

Moreover, Krafton’s partnership with Tencent, a key collaborator, may also be influenced by these Chinese government regulations.

Global political and economic situations also represent factors that could affect Krafton’s performance. 

For example, trade conflicts between the U.S. and China, as well as economic uncertainties in Europe, could impact Krafton’s global business.

As a result, Krafton is strengthening its monitoring of these external factors and developing responsive strategies.

To minimize risks associated with these external variables, Krafton is pursuing a variety of strategies. 

For instance, the company aims to reduce its dependence on specific markets or games through the development of new intellectual properties (IPs) and diversification of its portfolio.

However, the company still shows reliance on existing IPs, such as Battlegrounds, and the newly developed inZOI, raising concerns about the risks of being overly dependent on a single IP, a long-standing issue.

Meanwhile, Krafton is diversifying its risk by reinforcing localization strategies and partnerships in global markets.

Photo credits: Yonhap News, Tencent, Krafton