Concerns over post-PUBG growth prompts NPS to unload Krafton shares

A gameplay mode of Krafton's PUBG: Battlegrounds / Courtesy of Krafton

Korea’s state pension fund, the National Pension Service (NPS), has unloaded its shares in Krafton, the developer of PUBG: Battlegrounds (PUBG), worth over 110 billion won ($72.87 million), apparently due to concerns over the game studio’s excessive sales reliance on the battle royale game.

According to regulatory filings released April 1, the NPS has unloaded 551,844 Krafton shares from March 14, 2025 to Jan. 15 this year. Following the sales, it reduced its stake from 7.1 percent to 6.1 percent.

Based on the average closing share price of 319,811 won during the period, the stake reduction is estimated at around 163.7 billion won. However, the total is likely to fall between 117.5 billion won and 197.6 billion won, reflecting the period’s lowest and highest prices, given that transactions were likely concentrated within specific price bands.

Given that Krafton’s stock price has trended downward since its listing in 2021, the market estimates that the NPS may have incurred a loss of between 20 billion won and 100 billion won from the recent sale.

The NPS did not reveal the reason for reducing its holdings in Krafton despite incurring losses, but the move is widely interpreted as reflecting concerns over the company’s future growth drivers.

Krafton posted record annual sales of 3.33 trillion won last year, with its operating profit reaching 1.05 trillion won. Operating profit exceeded 1 trillion won for the second consecutive year.

Krafton said its sales from PUBG's intellectual property in the PC segment grew 16 percent from a year earlier, driving record annual revenue, while PUBG Mobile also continued to grow with the introduction of new themed modes.

PUBG, launched in 2017, has continued to generate steady revenue after transitioning to a free-to-play model in 2022. However, as the game approaches its 10th year, the market views Krafton’s heavy reliance on PUBG sales as weighing on its future valuation.

Krafton’s stock price reached an all-time high of 580,000 won in November 2021 but has since retreated to the mid-200,000 won range, largely due to the absence of a follow-up title to support the company’s mid- to long-term growth beyond PUBG: Battlegrounds.

“PUBG alone will be able to provide limited valuation for the company, and the key to further upside lies in new games,” Hanwha Investment & Securities analyst Kim So-hye said.

“While PUBG’s revenue is likely to remain solid, it is also important for the company to demonstrate its ability to move beyond the current monetization model and secure the next intellectual property.”

According to Krafton, it now has 26 game projects in its pipeline. Of them, the company plans to roll out 12, including Subnautica 2 and Palworld Mobile, in the next two years.