Krafton: Inflection point: De-rating to Re-rating: New IPs unlock upside, Accumulate

Research evidence excerpt

Krafton: Inflection point: De-rating to Re-rating: New IPs unlock upside, Accumulate

and PUBG Blind Spot. Global gamers also showed encouraging

Quarterly Forecasts (FYE Dec)

feedback to a six-minute NO LAW tech demo (FPS, cyberpunk action-RPG,

Adj. EPS (W)

developed by Neo Giant). 2025A 2026E 2027E

• New IP growth cycle begins with big hit of Subnautica 2; New-IP Q1Q2 7,887330 10,925A1,380

contribution to inflect up further. Subnautica 2 (early access launch on May Q3 7,844 6,664

15) is tracking toward an AAA hit. We estimate 6 million PC units (W257B) Q4 (483) 2,301

in 2Q and W366B combined 2026E revenue (original + sequel), lifting non- FY 15,579 23,244 28,973

PUBG IP game revenue contribution to 14% in 2026E (vs 2%/6% in 24/25).

Style Exposure

We forecast the official launch in 2028E. For the pipeline, we assume Palworld

Mobile and InZOI (official launch) in 2027E, followed by Subnautica 2 and

other new IPs (e.g., NO LAW) in 2028E, raising new-IP revenue contribution

to 20% in 2028E on our estimates. We conservatively assume Project Windless

(highly anticipated RPG) as a major 2029E launch.

• PUBG’s resilient growth cycle continues. Following an impressive 24% y/y

revenue growth in 1Q26, we forecast total PUBG IP revenue growth to re-

accelerate to 17% y/y to W3.3T in 2026E, driven by meaningful traffic and

monetization uplift in PKE and PUBG PC. New modes (e.g., Xenopoint) and

collaborations gained traction in 2Q. We also note the rising player buzz around

PUBG Ally, described as the world’s first in-game AI agent that can reason, act

autonomously, and play alongside users as a voice-enabled teammate.

Continued progress in AI-powered gameplay, UGC, and the Unreal Engine 5

update should extend the PUBG IP product life and monetization cycle over the