The semi-annual report submitted by KRAFTON (CEO Kim Chang-han) details the causes of its ₩29.9 billion net loss in the second quarter and its investment disposal activities for the first half of the year. The earnings release on July 29 had previously disclosed first-half revenue of ₩2.6616 trillion, an operating profit of ₩972.5 billion, and the scale of the Q2 net loss. The specific accounting items and amounts behind the loss were confirmed in this report.

The consolidated net loss for the second quarter was ₩29.9085 billion. This marks a shift to a deficit, down ₩45.43567 billion from the ₩15.53482 billion net profit recorded in the same period last year. On a cumulative basis for the first half, the company posted a net profit of ₩484.19457 billion, a 25.1% increase compared to the ₩386.99465 billion recorded during the same period last year.

The decline in net profit was driven by non-operating losses. The notes to the consolidated financial statements show a 'loss on valuation of financial liabilities at fair value through profit or loss' of ₩359.46283 billion recorded as a first-half expense. During the July 29 conference call, KRAFTON attributed the net loss to "non-operating losses, including those related to Unknown Worlds and foreign exchange translation."

Dividing ₩359.46283 billion by an exchange rate of ₩1438 yields $250 million. This is the same amount requested as an earn-out in the lawsuit filed by the founders of Unknown Worlds in the Delaware Court of Chancery. Both parties reached a settlement and withdrew the lawsuit on July 1, though the terms of the agreement were not disclosed.

However, the report does not specify the entity subject to this valuation loss. The only contingent considerations mentioned by name are ₩52.54 billion related to Eleventh Hour Games and ₩1.112 billion related to kind Co.

One additional figure for Unknown Worlds was confirmed. The acquisition cost recorded in the notes to the separate financial statements is ₩859.72479 billion, with a book value of ₩572.94873 billion at the end of the half. With approximately ₩286.7 billion in impairment, there was no additional impairment during the first half, as the figure remains the same as the book value at the end of the previous year. The auditor, Samjong KPMG, designated the impairment assessment of investments in subsidiaries and cash-generating units for this company as a key audit matter for both the 18th and 19th fiscal years.

Unknown Worlds' operating performance has rebounded. First-half revenue reached ₩85.69302 billion, with a continuing operations profit of ₩32.29452 billion, reflecting the impact of the early access launch of 'Subnautica 2'.

The status of investments in other corporations includes both investments liquidated and new ones executed during the first half.

In October 2023, KRAFTON invested ₩20 billion in One Store to acquire a 2.17% stake. This stake was fully disposed of during the first half. From an initial book value of ₩14.119 billion, a valuation loss of ₩12.59 billion was recognized, and the remaining book value of ₩1.529 billion was removed upon disposal, bringing the year-end book value to zero. One Store was acquired by NEXUS, and KRAFTON acquired 419258 shares of NEXUS for ₩964 million on June 27.

There were three new investments in the second quarter. On May 19, KRAFTON acquired a 13.44% stake in Socar for ₩65 billion, with a valuation loss of ₩4.741 billion recorded as of the end of the half. On May 20, it invested ₩50 billion for a 5.65% stake in The Black Label, and on June 29, it invested ₩50 billion for a 7.69% stake in HyperAccel. In effect, the game company has deployed over ₩50 billion each into car-sharing, a music label, and AI semiconductors.

The treatment of OVERDARE, a joint venture established with Naver Z, is moving in the opposite direction. KRAFTON holds a 85% stake, but the book value of the joint venture investment on a consolidated basis is zero. On a separate basis, the acquisition cost is ₩40.30283 billion, with a book value of ₩14.47485 billion. The net loss for the most recent fiscal year is ₩17.94 billion. While the book value is zero, loans have increased; the balance, which was ₩15.712 billion at the beginning of the year, reached ₩34.213 billion by the end of the half, with an additional ₩17.018 billion provided in the first half alone.

There are other stakes with a book value of zero. The 10% stake in PlayerUnknown Productions, founded by PlayerUnknown's Battlegrounds creator Brendan Greene, has an acquisition cost of ₩5.117 billion and a book value of zero. The same applies to Mythos Studios (₩13.91 billion), India's Talent Unlimited Online Services (₩15.879 billion), drama production company Hidden Sequence (₩5 billion), Gen.G Pop Interactive (₩2.812 billion), Noodle Cat Games (₩2.715 billion), Covenant.dev (₩2.225 billion), and Sword & Wand (₩648 million).

Some investments have been significantly written down. Polish listed company PCF Group has an acquisition cost of ₩42.291 billion and a book value of ₩4.782 billion, while India's Nazara Technologies has an acquisition cost of ₩52.238 billion and a book value of ₩22.596 billion.

The total book value of KRAFTON's investments in other corporations at the end of the period is ₩3.388273 trillion. The acquisition amount for the first half was ₩372.237 billion, with valuation losses of ₩9.423 billion.

Meanwhile, 'severance pay' of ₩40.98852 billion was newly recorded under operating expenses—an account item that did not exist in the same period last year. KRAFTON previously announced a voluntary resignation program for all employees on November 12, 2025, offering tiered compensation ranging from 6 months of salary for those with 1 year or less of service to 36 months for those with over 11 years. The report does not specify the reason for the occurrence of these severance payments.