KRAFTON (CEO Kim Chang-han) has resolved its legal risks after the plaintiff withdrew a lawsuit regarding contract fulfillment and damages filed by the former shareholder representative of its subsidiary, Unknown Worlds Entertainment.

KRAFTON announced on the 1st that the plaintiff had withdrawn the 'lawsuit for contract fulfillment and damages (Case No. C.A. No. 2025-0805-LWW).' The plaintiff is Fortis Advisors, LLC, the former shareholder representative for Unknown Worlds Entertainment.

The case was heard in the Delaware Court of Chancery in the United States, and the reason for the dismissal was a settlement reached between the parties. The withdrawal was filed on June 30 (U.S. local time), and KRAFTON officially confirmed the filing on July 1. Due to the settlement agreement, the specific settlement amount was not disclosed.

The legal dispute was sparked by disagreements between KRAFTON and its subsidiary, Unknown Worlds, regarding the release schedule and profit-sharing (earn-out) for their upcoming game. KRAFTON acquired Unknown Worlds, the developer of the 'Subnautica' series, in 2021 as part of its strategy to expand its global intellectual property (IP) portfolio.

The conflict surfaced on July 11, 2025, when Charlie Cleveland, former CEO of Unknown Worlds, revealed on Reddit that he had filed a lawsuit against KRAFTON. At the time, Cleveland expressed his frustration, stating, "We know in our hearts that the game is ready for early access," and adding that "the current game release is out of our control."

With this announcement of the lawsuit's withdrawal, KRAFTON has brought an end to the legal dispute in the U.S. that had been ongoing for nearly a year.

A KRAFTON official explained, "Key management members, including those at Unknown Worlds, Ted Gill, Charlie Cleveland, and Max McGuire, reached an agreement and decided to withdraw the pending lawsuit."

The two companies also reaffirmed their commitment to collaborating on the next title. KRAFTON stated, "Both companies are currently focused on the development and official launch of 'Subnautica 2,' with our top priority being to provide the best possible experience for our fans." Regarding the division of roles between the developer and publisher, the company added, "Unknown Worlds will continue to lead development, while KRAFTON will provide the necessary support to ensure the game's success."