KRAFTON develops plans to create a sustainable future focused on the environment, social and governance to grow the value of company and various stakeholders in the short and long term, and realizes them. In addition, KRAFTON practices sustainability by managing not only financial risks but also non-financial risks.

Environmental

# Items Detailed items Activities
1.1 Environmental management system Environmental information disclosure
Disclosure of information on the green management organization, water and energy usage, waste generation, etc. for 2022 on the Environmental Management Information System
1.2 Operational environmental impact and eco-efficiency Energy consumption
Energy consumption by location over the past 3 years
Category Location Unit 2021 2022 2023
Direct energy Gas Yeoksam
(Office)
TJ 0.40 1.00 1.60
Seocho
(Office)
TJ 0.75 0.59 1.16
Subtotal TJ 1.15 1.59 2.76
Indirect energy Electricity Yeoksam
(Office)
TJ 9.89 41.46 46.65
Seocho
(Office)
TJ 6.01 5.50 7.60
Pangyo
(Office)
TJ 11.51 9.43 6.97
Seongsu
(Office)
TJ 1.99 0.91 0.28
Pangyo
(Data Center)
TJ 6.62 8.02 7.29
Seongsu
(Rental)
TJ N/A 2.64 4.75
Subtotal TJ 36.01 67.97 73.55
Total TJ 37.17 69.56 76.31
Energy intensity(*1) TJ/Rev. 0.002 0.004 0.004
Annual reduction rate(*2) % (-)72.1% (-)87.2%% (-)9.7%
(*1)
Calculation based on consolidated revenue (unit: hundred million)
(*2)
Reduction rate
Increase in energy consumption in 2021 due to the opening of the Yeoksam office
Increase in energy consumption in 2022 due to shift from telecommuting to office work after COVID-19
Increase in energy consumption in 2023 due to additional real estate in Seongsu-dong and the expansion of cafeteria facilities in Seocho office
1.3 Energy conservation
Encouragement of an energy-saving culture among employees through resource-saving campaigns.
Automatic power-off settings
Large display in front of elevator: 22:00
Air conditioners in meeting rooms (during summer): 1st shutdown at 20:00, full shutdown at 23:50
Lighting
Use of LED lights (Pangyo, Yeoksam: Dimming function / Seocho: Only On-Off is allowed)
Lighting in meeting rooms: automatic power-off using sensors when not in use
1.4 Resources recycling
Use of recyclable paper bags for employees
Use of recycled A4 paper
Reduction of greenhouse gas emissions in the ‘pre-manufacturing stage’ by using ‘recycled pulp’ made from waste paper instead of ‘natural pulp,’ excluding the process of ‘wood harvesting, cutting, and processing’ during paper production
Cafeteria food waste management
Campaign for Zero Food Waste Days
Recycling of food waste (organic compost, feed ingredients, bio-oil, etc.)
1.5 Carbon emissions reduction
Commuter buses
Commuter bus use rate: approximately 68 users as of December 2023
Shuttle buses
By hub (office buildings): Yeoksam, Seocho, Pangyo
Between stations: Gangnam Station, Yeoksam Statio
No operation of company-owned passenger cars (corporate vehicles
1.6 Resources conservation and environmental protection
Employee campaign (HUB notice)
Upload of at least one post per quarter
Upload of posts or ads about resource saving and environmental protection
Collection of Nespresso coffee capsules
Participation in the recycling program run by Nespresso
Encouragement of tumbler use at the in-house cafe
Coupons provided for tumbler use
1.7 Green building plans
New office building set for completion in 2028, with green building plans focused on sustainability
Installation of renewable energy systems
Use of eco-friendly building materials
Application of high-efficiency energy systems
1.8 Management of climate-related risks and opportunities GHG(Greenhouse Gas) emissions
GHG emissions by location over the past 3 years
Category Location Unit 2021 2022 2023
Scope 1 Yoksam(Office) tCO2eq 20.35 50.55 80.36
Seocho
(Office)
tCO2eq 37.61 29.85 58.61
Subtotal tCO2eq 57.96 80.40 138.96
Scope 2 Yoksam(Office) tCO2eq 489.06 2,050.05 2,306.72
Seocho
(Office)
tCO2eq 297.11 272.18 375.88
Pangyo
(Office)
tCO2eq 568.91 466.26 344.79
Seongsu
(Office)
tCO2eq 98.58 45.12 14.01
Pangyo
(Data Center)
tCO2eq 327.20 396.68 360.27
Subtotal tCO2eq 1,780.86 3,230.30 3,401.65
Scope 3 Seongsu
(Rental)
tCO2eq N/A 130.46 235.11
Total tCO2eq 1,838.82 3,441.16 3,775.73
GHG Emission intensity(*1) tCO2eq/Rev. 0.098 0.186 0.198
Annual reduction rate(*2) % (-)72.1% (-)87.1% (-)9.7%
(*1)
Calculation based on consolidated revenue (unit: hundred million)
(*2)
Reduction rate
Increase in GHG emissions in 2021 due to the opening of the Yeoksam office
Increase in GHG emissions in 2022 due to shift from telecommuting to office work after COVID-19
Increase in GHG emissions in 2023 due to additional real estate in Seongsu-dong and the expansion of cafeteria facilities in Seocho office
1.9 GHG reduction
No operation of in-house data centers, utilizing cloud services for game server
Approximately 9,000 cloud (A**, M**) VM instances in use as of June 2024
Cloud service providers plan to achieve 100% renewable energy use by 2025
Reduction in greenhouse gas emissions due to the use of cloud services for game servers
Few physical servers for in-house information systems located in third-party data centers with lease

Social

# Items Detailed items Activities
2.1 Industrial safety and health Employee safety and health
Operation of Industrial Safety and Health Committee (employee representatives, employer representatives/ quarterly meetings
Annual air quality measurement (covering all offices)
Bake-out procedure conducted when moving into the Seocho office
Company-wide training on AED heart defibrillators
Annual fire evacuation drills (Yeoksam and Pangyo in 2022 / Yeoksam, Seocho, and Pangyo in 2023)
Detection of wiretapping, eavesdropping and illegal filming (in closed spaces, meeting rooms, restrooms, etc.)
Risk assessment activities (industrial safety and health activities)
Making improvements based on evaluation results (ex. expanded posting of safety and health signs)
ISOS services that provide comprehensive safety management services during overseas business trips (covering both business travelers and dispatch employees, 859 business trips in 2023)
Company regulations on industrial safety and health management
2.1-1 Safety and health for partner companies
Support for compliance with safety and health obligations for subcontractors
Monthly operation of consultative meetings with full attendance of subcontractors
Provision of venues and materials for the safety and health education of subcontractors
Encouragement of subcontractor employees to use sanitary facilities
2.2 Human resources development Employee status
Diversity of employees
Category 2021.12.31 2022.12.31 2023.12.31
Employees(*1) Team members Male Head count 901 989 827
Ratio 68.0% 67.1% 64.6%
Female Head count 424 484 453
Ratio 32.0% 32.9% 35.4%
Managers(*2) Male Head count 207 212 205
Ratio 81.5% 80.9% 77.7%
Female Head count 47 50 59
Ratio 18.5% 19.1% 22.3%
Foreign employees Head count 52 61 50
(*1)
KRAFTON, Inc. members as of December 31, 2023 (excluding registered executives)
(*2)
Team leaders and above
Employee turnover(*1)
Category 2021
Male Female Total Ratio by type of turnove
Head count Ratio Head count Ratio
By type Voluntary turnover(*2) 104 75.9% 33 24.1% 137 89.0%
Non-voluntary turnover(*3) 7 77.8% 2 22.2% 9 5.8%
Relocation to affiliates 7 87.5% 1 12.5% 8 5.2%
Total 118 76.6% 36 23.4% 154 100.0%
Category 2022
Male Female Total Ratio by type of turnover
Head count Ratio Head count Ratio
By type Voluntary turnover(*2) 128 71.9% 50 28.1% 178 94.2%
Non-voluntary turnover(*3) 2 66.7% 1 33.3% 3 1.6%
Relocation to affiliates 5 62.5% 3 37.5% 8 4.2%
Total 135 71.4% 54 28.6% 189 100.0%
Category 2023
Male Female Total Ratio by type of turnover
Head count Ratio Head count Ratio
By type Voluntary turnover(*2) 127 69.0% 57 31.0% 184 40.9%
Non-voluntary turnover(*3) 4 66.7% 2 33.3% 6 1.3%
Relocation to affiliates 194 74.6% 66 25.4% 260 57.8%
Total 325 72.2% 125 27.8% 450 100.0%
(*1)
Based on regular employees
(*2)
An individual-led decision to leave the organization with all reasons except non-voluntary turnover and relocation to affiliates, regardless of the organization’s intention
(*3)
Termination of employment initiated by the organization, including recommendation to resign, dismissal during probation, etc
Voluntary turnover rate in 2023: 11.1%, at the industry average level
2.3 Employee health promotion
Programs for promoting employees’ health (for all employees including regular and contract workers)
Health check-ups (employee and one family member)
Group insurance enrollment
Exercise expense support
2.4 Work and life balance
(For all employees)
Selective working hours policy
Flexible working hours, excluding core time from 11:00 AM to 4:00 PM
Telecommuting policy
Telecommuting at least once a week at the discretion of the team unit
KRAFTON daycare center (Yeoksam, Pangyo)
Little Fore (max. 180)
Approved leave system
Refresh leave, long service leave, health check-up, moving leave, birthday leave, paid sick leave, etc.
Self-Approval Leave System
96.27% of annual leave used (as of end-2023)
2.5 Pregnancy support program
Reserved parking spots for pregnant employees
Nursing rooms
Maternity leave before and after childbirth and parental leave
Reduced working hours during pregnancy
Leave for prenatal health check-up
2.6 Employee family care
Congratulations and condolence for all employees
Provision of support and extensive leave for events such as weddings, funerals, births, and children’s elementary school admissions
2.7 Employee housing support
Interest-free housing loan
Housing loan interest support
Assistance for new employees adapting to the company
Shared housing
2.8 Fair recruitment
Establishment of anti-discrimination policy
Stated in Articles 4 and 5 of the Work Rules
2.9 Employee communication
Active communication with employees
Feedback and opinion gathering through the Board of Communication(labor-management council) meeting every month from 2018 to the present(2023)
12 meetings in 2021, discussing and dealing with 44 agendas
12 meetings in 2022, discussing and dealing with 26 agendas
12 meetings in 2023, discussing and dealing with 22 agendas
2.10 Employee satisfaction survey
Execution of employee satisfaction surveys across multiple categories
Resigned employees: Survey on workplace satisfaction and experience at the time of resignation
New employees: Satisfaction survey three months after join
Welfare satisfaction: Satisfaction survey on employee welfare benefits
Overall workplace satisfaction: Satisfaction survey on work environment
2.11 Employee training
Employee training system:
Category Details
External training support system
Support for job competency enhancement and certification attainment for all employees, including regular and contract workers
Annual education expenses up to KRW 2M per person
Job training / Foreign language training / Self-improvement training
Partnerships with approx. 5 external foreign language training institutions to enhance employees’ language proficiency
Support for exams and certifications to enhance job expertise
Leadership training
Programs to strengthen leadership capabilities
Leader Onboarding Program: Support for new leaders in recognizing their changed roles and performing basic leadership tasks
MDC (Manager Development Camp): Development of unique leadership based on self-awareness and enhancement of leadership capabilities
Senior Executive Training: Education on the latest management trends and the role of senior executives
Performance measurement(satisfaction surveys) of training programs
New employee training
Onboarding program ‘HELLO, KRAFTON’
A four-stage onboarding process over three months to facilitate soft landing for new employees
Understanding of the organization’s vision and values, internal policies, and mastering key work tools
Internal seminars
KRAFTON Development Conference (KDC)
Regular conferences for voluntary knowledge and experience sharing within the organization
Invitation of external experts for lectures to share industry knowledge
Regular publication of industry insights reports, such as GDC reviews
AI Seminars: Education on using AI tools and AI ethics to improve work efficiency
UGA (User & Game Analysis) : Information sharing to improve insights into game development and publishing
2.12 CEO & key leadership succession planning & development program
Comprehensive succession planning to identify and systematically develop potential CEO candidates
A dedicated support organization, along with relevant internal departments such as HR, collaborate to establish and implement succession planning and development program
Strengthening of managerial and leadership capabilities of internal CEO candidates through external executive education program
Provision of tailored training to share practical management strategies suited to each candidate’s needs
Delivery of in-depth content on leadership, management, and economics, with participation from various domestic and international experts
2.13 Legal compulsory education
Annual legal compulsory education
Prevention of workplace sexual harassment
Personal data protection
Prevention of workplace bullying
Promotion of disability awareness
Retirement pension education
2.14 Employee Stock Ownership Plan
Operation of Employee Stock Ownership Plan(ESOP) together with the KOSPI listing in August 2021
Operating status of ESOP (as of end of 2023)
Corporate name Number of ESOP Union Members by Corporation (A) Total Number of Employees by Corporation (B) ESOP Union Membership Rate by Corporation(*1) (A)/(B) Proportion of ESOP Union Members to Total Employees (A)/(C)
KRAFTON 897 1,589 56.45% 43.00%
Bluehole Studio 127 167 76.05% 6.09%
RisingWings 83 122 68.03% 3.98%
Flyway Games 42 72 58.33% 2.01%
ReLU Games 26 36 72.22% 1.25%
Dreamotion 10 31 32.26% 0.48%
Thingsflow 10 69 14.49% 0.48%
Total 1,195 (C)2,086
(*1) Includes individuals who applied for membership at the initial establishment of the employee stock ownership association but currently do not hold any ESOP shares
2.15 Employee performance evaluation and reward
Individual Performance Evaluation
Annual evaluations (yearly assessments) along with mid-year reviews and irregular feedback for ongoing performance management and feedback provision
Setting individual work goals/plans at the beginning of the year
Mid-year reviews – self-assessment and organizational leader reviews
Evaluation of performance results at the end of the year and considering evaluation outcomes for compensation decisions
Performance-based stock compensation programs for all employees
RSU
Stock options
ELI
2.16 Talent acquisition pipeline
Industry-Academic Cooperation program
KAIST Jungle
Annual recruitment in progress through this program since April 2021
Internship program
AI Fellowship: An internship program for undergraduate students from top domestic/international universities (Jun-Aug)
AI Research Internship
An internship program for master’s and Ph.D. students from top domestic/international universities (Jun-Aug)
Conducted research in 2022 with the goal of achieving results through intern recruitmen
Internship on a rolling basis
Open recruitment on a rolling basis at the request of the team, with consideration for regular conversion if necessary
2.17 Job creation
Recognition as a leading company for job creation
Selected in 2019, 2020, 2022, and 2023
2.18 Human rights management Respect for fundamental rights
Human rights management policy
Code of Conduct Chapter 4 ‘Promise to Colleagues’
4-A. Respect for diversity and anti-discrimination
4-B. Workplace bullying and sexual harassment
4-C. Respect for the privacy of our employees
4-D. Feedback based on careful considera
4-E. Protection of our members
2.19 Employee grievance report
System for addressing employee harassment issues
Report collection and counseling by the Culture Team (workplace harassment, sexual harassment, etc.)
Issues are received via internal portal or email, with procedures announced on the portal.
Employee harassment issues are addressed based on the company policy (prevention and response to workplace sexual harassment/bullying)
Formal investigations are conducted by the Compliance Dept, with results and review committee’s feedback shared with internal directors
Operation of Speak Up
Coverage: all employees of Krafton, including those working at subsidiaries and overseas offices, as well as external stakeholders such as business partners, suppliers, and contractors can report
Principles: protection of reporters, anonymous reporting allowed
Procedures:
Filing of reports through the internal portal or company website
Initial review by the Business Assessment Office, with a request for review by the Compliance Department if necessary
After review, disciplinary actions and measures to prevent recurrence are discussed if necessary (consultation with HR)
Final investigation results are reported to management (Chairman)
In 2023, 12 cases were received and resolved (100% resolution rate)
2.20 Employee Mind Care
Mind care for all employees
Psychological counseling program to help employees address issues such as job and interpersonal stress, mental health, personal concerns, addiction, etc.
Outsourced mind care program through a specialized organization with 280 centers nationwide
2.21 Fair competition Unfair competition or anti-competitive
Company policy on unfair competition or anti-competitive
Code of Conduct Chapter 5 ‘Promise to partners’
5-A. Compliance with fair trade and competition laws, etc.
5-B. Pursuit of cooperative relationships
Risk management related to unfair competition or anti-competitive
Identification of risk-related business sectors and relevant departments
Analysis of legal risk and understanding the status of compliance control
Implementation of detailed compliance checks for major legal risks
Incorporation of changes in relevant laws and Fair Trade Commission practices into business processes
Education on unfair competition or anti-competitive
Education for large enterprise groups
Targeting relevant departments and affiliated companies
Education on the implications of the enterprise group designation system, definition of internal transactions and regulations on unfair support, precautions for disclosures and various reports
Education on subcontracting transaction precautions
Targeting business departments and affiliated companies
Education on the definition and types of subcontracting transactions, regulatory trends, and pre-checklist for subcontracting transactions
2.22 Improvement of consumer satisfaction Protection of consumer rights and interests
Company policy on consumer rights and interests
Code of Conduct Chapter 1 ‘Promise to fans’
1-A. A game made with craftsmanship
1-B. A healthy game
1-C. Continuous and stable service
1-D. Open communication with fans
1-E. Protecting personal information
Consumer rights protection activities
Processing of civil complaints in the event of a dispute over consumer rights and interests(187 cases handled in 2023)
Promotion of consumer rights and interests protection by providing information on suspects in the case of investigative agencies(37 cases handled up to 2023)
Response to complaints from the Korea Consumer Agency to protect consumer rights and interests(11 cases handled up to 2023)
2.23 Local community engagement and development Social contribution
Refer to CSR page
Company policy on CSR
Details and achievements of community contribution activities
2.24 Data protection and cyber security Data protection system
Company policy on information security and privacy
Code of Conduct Chapter 1 ‘Promise to fans’
1-E. Protection of Personal Information
Operation of the security and privacy departm
Designation of a Chief Information Security Officer (CISO) based on Article 45-3 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, and Article 36-7 of the Enforcement Decree of the same Act.
Designation of a Personal Information Protection Officer (CPO) based on Article 31 of the Personal Information Protection Act and Article 32 of the Enforcement Decree of the same Act
Establishment and operation of a dedicated organization to systematically oversee and implement the company’s information security activities.
Risk management plan
Identification, evaluation, improvement, and management of administrative, physical, technical, and legal risks for information and personal information protection.
Education and awareness enhancement programs
Privacy protection and data security training
For new employees (once a month upon hiring)
For all employees including contract workers (once a year)
IT/Privacy and Security Job-specific Training
For engineering positions (at least once a year)
2.25 Information security management system certifications
External audit for IT security (once a year)
ISMS-P certification (Information Security and Personal Information Protection Management System certification
A system where the Korean Internet & Security Agency (KISA) or certification bodies verify that a series of measures and activities for information security and personal information protection comply with certification criteria, based on Article 47 of the Act on Promotion of Information and Communications Network Utilization and Information Protection
The initial certification is valid for 3 years (subject to annual post-assessments to evaluate the effectiveness of the certification), and subsequent assessments are conducted for either initial or renewal certification.
Current certification status for ISMS-P:
KRAFTON: ISMS-P-KISA-2022-005 (2022.03.02. ~ 2025.03.31.)
Rising Wings: ISMS-P-KISA-2022-004 (2022.02.16. ~ 2025.02.15.)
2.26 Creation of an environment for data protection
Campaigns related to data protection
Provision of a pocket guide to data protection
2.27
Data protection activity
Management and revision of information security policies and guidelines (once a year or as needed)
Information security audits and inspections to validate and improve the effectiveness of security regulations and activities (once a year)
Regular vulnerability assessments and improvements for information security and personal information protection (at least once a year, as needed)
Simulations for incident and IT disaster response to ensure service continuity (once a year)
Management and supervision of contractors handling personal information (once a year)
Notification of personal information usage history (once a year)
Subscription to personal information protection liability insurance (ongoing
Implementation of technical, administrative, and physical security measures for personal information protection (ongoing)
Establishment and operation of account and authorization management processes
Application of secure authentication/access methods
Encryption policy and management
Log retention and management, review
Designation and management of secure areas
Management of personal information processing records (ongoing)
Disclosure of matters related to personal information processing outsourcing, third-party provision, and overseas transfers (ongoing)
Selected as an Excellent Company for Information Security Investment by KISA for four consecutive years from 2020 to 2023
Year Information Technology Sector Investment Amount in KRW (A) Information Security Sector Investment Amount in KRW (B) The Ratio of Information Security Investment (B)/(A)
2019 42,820,009,906 1,160,862,906 2.71%
2020 54,410,540,138 2,354,056,056 4.3%
2021 202,174,339,648 4,061,590,356 2.0%
2022 250,368,422,140 6,443,565,101 2.6%
2023 232,448,350,136 6,649,298,992 2.9%

Governance

# Items Detailed items Activities
3.1 Corporate governance Corporate governance
Corporate governance
Refer to ‘Corporate Governance Report‘ disclosed on May 30, 2024
3.2
Shareholder Return
Establishment of a three-year shareholder return policy for 2023-2025 through a board resolution on February 7, 2023.
Acquisition of treasury shares within a limit of 40% of the amount excluding investment from the previous year’s Free Cash Flow (FCF) each year
In 2023, 100% of the acquired treasury shares were retired
In 2024, 60% of the acquired treasury shares were retired
Plan to retire at least 60% of the treasury shares acquired in 2025
3.3 Business ethics Speak Up policy
Operation of Speak Up
Filing of reports through the internal portal or company website
After review, necessary cases are discussed by the HR committee
Final investigation results are reported to the management (Chairman)
In 2023, 9 cases were received and resolved (100% resolution rate)
3.4 Compliance activities
Annual compliance control audits
Legal risk assessments and compliance control checks for 10 key items, including governance, ethics, fair trade, and information protection
Control activities regarding compliance and ethics in each operation
Annual compliance control system report and a semi-annual compliance report to be submitted to management
3.5 Employee ethics improvement
Spreading the Code of Conduct
Code of ethics training for all employees, including regular and contract workers
Regularly providing training videos on key topics to address key issues on ethical standards
Compliance training on the prevention of insider trading activities
3.6 Practice and promotion of gaming ethics
Code of Ethics Chapter 1 ‘Healthy Gaming’
Compliance training on the prevention of insider trading activities
Ethical appropriateness review of vendors when pursuing collaborations
Campaigns to prevent gaming violence
3.7
Fraud prevention
Prevention of bribery and corruption
Review and responses to inquiries from employees related to:
Code of Ethics (gifts, entertainment, unfair trade, conflict of interest, etc.)
Revision and interpretation of company regulations
Various compliance-related systems such as the pre-notification of stock trades by officers and employees
Fraud prevention activities through the Business Assessment Office, an independent internal audit department
Conducting diagnostics and investigations
Communication of the Business Assessment Office’s role, responsibility, authority, independence, objectivity and work scope to all employees through the Business Assessment Charter
Anti-bribery and embezzlement policy
Code of Conduct Chapter 2 ‘Promise to the company’
2-D. Prohibition of illegal solicitation/bribery
Code of Conduct Chapter 3 ‘Promise to investors’
3-B. Embezzlement and breach of trust

ESG Grade

MSCI Ratings

Year Grade
2024 BBB
2023 BB
2022 BB

KCGS Ratings

Year Grade Enviromental Society Governance
2023 B+ C A A