The South Korean company that accidentally invented the most popular game genre of the decade. PUBG created battle royale, sold 75 million copies, and then watched Fortnite copy the concept and get bigger. But Krafton had the last laugh: PUBG Mobile has earned $9 billion, the company went public at a $30 billion valuation, and the PUBG IP is now a cultural landmark. Sometimes being first matters — even when a competitor is flashier.
Founded
2007
HQ
Seongnam, South Korea
Total Raised
$IPO in 2021
Founder
Chang Byung-gyu
Status
Public (KRX: 259960) — market cap approximately $15 billion
Website
www.krafton.comTHE ORIGIN STORY
Chang Byung-gyu founded Bluehole (later renamed Krafton) in 2007 in South Korea. The company's early game, TERA (an MMORPG), was a moderate success.
The transformative moment came in 2016 when Bluehole hired Brendan "PlayerUnknown" Greene — a modder who had created the battle royale concept for ARMA and H1Z1 — to build a standalone game. PUBG launched in early access on Steam in March 2017 and sold 1 million copies in 16 days.
By the end of 2017, it had sold 30 million copies and was the most-played game on Steam.
WHAT THEY ACTUALLY DO
Game development and publishing company that created PUBG (PlayerUnknown's Battlegrounds) — the game that invented the battle royale genre. Revenue comes from game sales, in-game purchases (cosmetic items, battle passes), and licensing fees.
PUBG Mobile, operated by Tencent in most markets, has generated over $9 billion in revenue. The PUBG IP generates revenue across PC, console, mobile, and esports.
THE PRODUCTS
PUBG: Battlegrounds (the original battle royale — PC and console), PUBG Mobile (mobile version with 1 billion+ downloads), PUBG New State (next-gen mobile battle royale), The Callisto Protocol (survival horror), and inZOI (life simulation game). PUBG across all platforms has surpassed 75 million copies sold on PC/console and over 1 billion mobile downloads.
HOW THEY GREW
IP expansion beyond games. Krafton is building the PUBG universe into films, animations, and merchandise.
The company acquired several studios and invested in new IPs (The Callisto Protocol, Subnautica developer Unknown Worlds). PUBG Mobile continues growing in markets like Southeast Asia, Middle East, and Latin America.
PUBG Global Championship esports events draw millions of viewers.
THE HARD PART
Competition from Fortnite. Epic Games launched Fortnite Battle Royale in September 2017 — free-to-play, more polished, and built on the battle royale concept that PUBG popularized.
Fortnite overtook PUBG in players and revenue within months. Krafton sued Epic Games for copyright infringement but dropped the suit.
The relationship with Tencent (which operates PUBG Mobile and also owns 40% of Epic) created complicated dynamics. PUBG also faced bans in India (its largest mobile market) and regulatory challenges in China.
MONEY TRAIL
IPO
2021 · Led by Korea Exchange public offering
$3.8B raised
WHO BACKED THEM
Krafton went public in 2021 on the Korean Exchange in one of South Korea's largest IPOs. Tencent holds a small stake.
The company is largely self-funded through game revenue.
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