Sustainability

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.

Environment

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 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
Energy 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
1.8 GHG reduction
•
Use of cloud services for game servers
–
Approximately 9,000 cloud (A**, M**) VM instances in use as of June 2024
•
No operation of in-house data centers due to the use of cloud services for game servers
–
A few physical servers for in-house information systems located in third-party data centers with lease.
–
No significant greenhouse gas emissions

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
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Annual air quality measurement (covering all offices)
–
Bake-out procedure conducted when moving into the Seocho office
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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
–
Health check-ups (employee and one family member)
–
Group insurance enrollment
–
Exercise expense support
2.4 Work and life balance
•
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
–
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
–
Resigned employees: Survey on workplace satisfaction and experience at the time of resignation
–
New employees: Satisfaction survey three months after join
–
Employee benefits: Satisfaction survey on employee benefits
2.11 Employee training
•
Employee training system:
Category Details
External training support system
•
Support for voluntary learning and competency improvement for all members, including regular and contract employees
–
Annual education expenses up to KRW 2M per person
–
Job training / Foreign language training / Self-improvement training
–
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
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 Leadership training
•
Programs to strengthen leadership capabilities
–
Training for newly-appointed leaders
–
Training for team leaders
–
Training for top management
•
Performance measurement(satisfaction surveys) of training programs
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 members by corporation (A) Total number of employees by corporation (B) Percentage of employee stock ownership association members by corporation(*1) (A)/(B) Percentage of employee stock ownership association members by corporation 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
–
Performance reviews twice a year (mid-year, year-end)
–
Multi-faceted feedback for leaders
•
Stock-based compensation programs for all employees
–
RSU
–
Stock options
–
ELI
2.16 Talent nurturing
•
Industry-Academic Cooperation
–
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 harassment 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
–
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
•
Employee Mind Care
–
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 satisfactio 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 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 Data protection certification
•
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 KRAFTON:
▪
ISMS19-014 (2019.04.01. ~ 2022.03.31.)
▪
ISMS-P-2022-005 (2022.03.02. ~ 2025.03.31.)
2.26 Creation of an environment for data protection
•
Campaigns related to data protection
–
Provision of a pocket guide to data protection
2.28
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
–
‘Governance’page
–
Refer to ‘Corporate Governance Report‘ disclosed on May 30, 2024
•
Board Skills Matrix
–
Refer to ‘Governance’ page
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 new employees, including full-time and contract workers
•
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