Krafton has established a local holding company, 'KRAFTON BRASIL HOLDINGS LTDA', in São Paulo, Brazil, as of October 26. According to a corporate registration (CNPJ) certificate issued on the 5th by the Federal Revenue Service of Brazil (Receita Federal), the entity completed its registration on the day of establishment and is currently active (ATIVA). Its capital stock is 12 million reais (approx. 2.96508 billion won).
Previously, Krafton stated on October 26 that no official decision or confirmation had been made regarding the establishment of a Brazilian subsidiary. However, according to tax authority records, the entity was established on that exact day.
Preparations began at headquarters. Krafton newly created a "Brazil Strategy Development Department" to oversee medium- to long-term strategies for Latin America, including Brazil, and appointed former Bluehole CEO Kim Hyo-sub to lead it. Kim became CEO of Bluehole, Krafton's predecessor, in October 2017 and led the company until 2020. Industry observers note that Krafton Chairman Chang Byung-gyu has long eyed Latin America as the company's next major hub.
The entity is structured as a limited liability company (LTDA). Its primary business activity is registered as a non-financial holding company that holds and manages shares in other companies, with secondary activities listed as information services, management consulting, and office support services. According to the tax authority's list of partners and managers (QSA), the sole investor is Krafton HQ (KRAFTON, INC.). The corporate manager is Sandra Gomes Duarte, who also serves as headquarters' local legal representative.
Brazil is one of the world's top markets in terms of player base. According to estimates by market research firm Newzoo, Brazil's gaming market revenue reached $2.7 billion (KRW conversion needed) in 2025, ranking ninth globally. Its player count stands at 123.3 million, trailing only China and the U.S. among the top 10 revenue-generating countries. Total gaming revenue in Latin America reached $8.3 billion (KRW conversion needed) that same year, up 6.4% year-over-year. Brazil accounts for roughly one-third of all gaming revenue in Latin America.
Compared to its player numbers, spending remains relatively modest. According to estimates by app analytics firm AppMagic, Brazil ranked third globally in mobile game downloads in 2025 with 4.2 billion downloads, but ranked 14th in mobile game player spending at $562 million (KRW conversion needed).
The ties between 'PUBG: BATTLEGROUNDS' and Brazil are also growing. The Brazilian national team took first place with 124 points at PUBG Nations Cup (PNC) 2026, which concluded in Seoul on June 28. According to Krafton, this marks the first time an Americas-region team has won the tournament.
The Brazilian government is fostering the gaming industry while simultaneously tightening regulations. On May 3, 2024, Brazil enacted the framework law for the gaming industry, 'Marco Legal dos Games' (Law No. 14.852). The law allows games to be developed and operated without prior government approval and includes game developers in support schemes for the cultural and audiovisual sectors. Conversely, the Digital Child and Adolescent Statute (ECA Digital, Law No. 15.211), which took effect on March 17, 2026, explicitly bans loot boxes in games accessible to minors under Article 20.
Following the creation of the strategy department and the registration of the local holding entity, Krafton's Latin America strategy has moved beyond the planning stage to establish a legal base on the ground. However, the specific purpose of the Brazilian entity and its local business plans have not yet been disclosed.
