Krafton is currently expanding its business in every conceivable direction. Beyond a variety of new projects, the firm is aggressively acquiring studios to secure new IP. They have also dipped their toes into the media and entertainment sphere, investing in the short-form drama platform Spoon Labs and acquiring the Japanese ADK Group.

Furthermore, in India, Krafton is leveraging the massive success of 'Battlegrounds Mobile India' to cement its status as a premier gaming powerhouse, backing local firms and hosting esports tournaments. It is a clear play to move beyond domestic borders and capture the world's most populous nation as part of a grand global expansion strategy.

Krafton is pursuing a firm goal of locking down new IP through a wide-ranging spree of studio M&As. In the early days, fueled by the success of PUBG, they focused on developing new titles by establishing or acquiring smaller studios like RisingWings and Dreamotion.

This strategy shifted following the 2019 release of 'The Callisto Protocol'. On one hand, the company operates smaller, leaner studios like Relu Games and 5minlab to churn out multiple smaller titles. On the other, they are developing and acquiring larger projects to secure massive franchises. CEO Changhan Kim even made it clear during a company-wide internal meeting earlier this year that they would be ramping up investment for these large-scale franchises.

Looking abroad, Krafton pulled off a major coup in 2021 by acquiring Unknown Worlds, the team behind 'Subnautica'. By 2024, they secured the Hi-Fi RUSH IP from the now-defunct Tango Gameworks. Currently, the team is working on Subnautica 2, while Krafton Montreal Studio is crafting an RPG based on the popular fantasy novel 'The Bird That Drinks Tears'.

Back home, Krafton secured an additional 39.37% stake in Neptune this past April, becoming the largest shareholder. Given Neptune's expertise in Eternal Return and various casual games, this move seems aimed at filling the gap in Krafton's mobile casual portfolio while leveraging the core gamer base of Eternal Return to expand their esports footprint.

Krafton isn't just sticking to games; they are broadening their horizons in media as well. Since 2021, they have produced short films based on the PUBG universe, such as 'Ground Zero', 'The Witnesses', 'The Blunt Force Trauma', and 'Rondo'. These shorts were well-received for their world-building, featuring star power from heavyweights like Don Lee and Lee Jung-jae.

In September 2024, Krafton invested 120 billion won into the short-form drama platform Spoon Labs. Spoon Labs currently operates VIGLOO, a platform specializing in bite-sized drama content that runs for roughly two minutes.

Then, in June, they acquired the parent company of Japanese marketing and animation house ADK Holdings for 710 billion won. ADK Holdings is a powerhouse in advertising, content planning, and animation production. This acquisition provides a firm foundation for Krafton to enter the Japanese advertising and content markets, allowing them to monetize their IP through new animation projects.

Krafton is pulling out all the stops to become a household name in India, the world's most populous nation. After first knocking on India's door in 2018, the company has weathered quite a storm in a complex political and cultural landscape. After the PUBG mobile service was banned twice, they established a local entity and developed 'Battlegrounds Mobile India' specifically for the market to keep the service alive.

Investment in local firms remains a priority. In early 2022, Krafton invested approximately 6.5 billion won into Nautilus Mobile, a developer specializing in sports games. They are also running an incubator program for Indian game startups; across 2023 and 2024, they selected 10 startups to receive roughly 200 million won in support and expert developmental consulting over a one-year period.

Beyond game devs, Krafton continues to funnel money into Indian tech firms. In 2022, they participated in the Series B round for the audio platform Kuku FM, and earlier this year, they poured about 77.6 billion won into the fintech firm Cashfree Payments, effectively becoming a strategic partner.

Efforts to cultivate the broader Indian gaming ecosystem are also underway. In the realm of esports, Krafton consistently hosts tournaments based on the national phenomenon that is Battlegrounds Mobile India. This includes friendly matches with Korea and the 'Battlegrounds Mobile India Pro Series (BMPS)'. The BMPS 2025 boasts a prize pool nearing 640 million won, the largest in the history of Indian esports.

It is clear that Krafton is evolving from a mere game developer into a multinational, diversified entertainment conglomerate. As the second-largest gaming company in Korea by market cap, they are using their massive cash reserves to fund this ambitious expansion.