Nexon and Krafton have both surpassed 2.5 trillion won in revenue for the first half of 2026, increasing the likelihood of becoming the first South Korean gaming companies to join the '5 trillion club.' Last year, Nexon set the record for the highest annual revenue among domestic game companies at 4.5 trillion won, while Krafton has taken the lead in the annual revenue race by outperforming Nexon in the first half.
Nexon was the first domestic game company to exceed 4 trillion won in annual revenue in 2024, but no South Korean game company has yet achieved 5 trillion won in annual revenue.
According to the gaming industry on August 15, Krafton reported a first-half revenue of 2.66 trillion won and an operating profit of 972.5 billion won, marking a 73.3% and 38.3% increase, respectively, compared to the same period last year. This performance accounts for about 80% of last year's total annual revenue of 3.33 trillion won.
Nexon also reported a first-half revenue of 2.56 trillion won (273.3 billion yen) and an operating profit of 837.9 billion won (89.4 billion yen), achieving a 17% and 13% increase, respectively, compared to the previous year, setting a record for the highest half-year performance.
In the first half, Krafton outperformed Nexon by 1.01 trillion won in revenue and 1.35 trillion won in operating profit. Krafton's rapid growth is attributed to the success of its existing key intellectual properties (IPs) and new IPs. The revenue from the 'PUBG' franchise increased by 25% compared to the same period last year.
The recently launched 'Subnautica 2' surpassed 5 million copies sold within 22 days of its release, contributing 232.5 billion won to the revenue of the Subnautica IP in the first half. The performance of ADK Group, an advertising and content company acquired last year, was also included in Krafton's results.
Nexon continued its growth driven by the 'MapleStory' franchise and the release of 'Ark Raiders' last October. Notably, the revenue from the MapleStory franchise in the second quarter increased by 63% compared to the previous year, reaching a record high for the quarter. However, the decline in revenue from the Chinese version of 'Dungeon & Fighter Mobile' continues, and the performance of major IPs like MapleStory in the second half is expected to impact overall results.
Despite the strong performance in the first half, some analysts caution that it may be premature to predict both companies will reach the 5 trillion won mark. Krafton's reliance on PUBG and the performance of new titles, along with Nexon's recovery in the Chinese market and the success of new releases in the second half, are seen as critical factors. Shinhan Investment Corp. positively assessed the platformization of PUBG and the success of 'Subnautica 2,' suggesting that Krafton has established a foundation for launching multiple mid-sized new titles based on stable cash generation.
YuJin Investment Corp. raised its revenue forecast for Krafton this year from 4.61 trillion won to 4.87 trillion won, but still expects it to fall short of the 5 trillion won mark by about 130 billion won.
Nexon is also expected to continue its growth this year. Analysts project a consensus annual revenue of 5.07 trillion yen for 2026, reflecting an increase of about 6.8% from last year.
The industry believes that whether either company can actually achieve 5 trillion won will depend on the growth of existing IPs and the performance of new titles in the second half. An industry insider noted, “There is growing interest in the annual revenue competition between the two companies. If Krafton maintains its lead through the end of the year, it could mark the entry of the first South Korean company into the '5 trillion club' and intensify the competition for revenue leadership.”
* This article has been translated by AI.
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