Date: August 17, 2023
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South Korea-based game publisher KRAFTON invested ₩8 billion KRW (approx. $6 million USD) in FunnyStorm, acquiring a 24.24% stake in the studio. This investment was part of a larger strategy in which KRAFTON injected a total of ₩92.5 billion into four global developers during the first half of 2023.
FunnyStorm, founded in 2021, is currently developing a next-generation location-based AR mobile RPG that merges GPS tracking with fantasy gameplay. The company was highlighted for its innovation in blending augmented reality and real-world terrain interaction, making it a standout in the future of LBRPGs.
KRAFTON’s overall investment strategy reflects a shift from first-party publishing (full ownership) to second-party publishing, where it acquires partial stakes to secure publishing rights. This approach aims to take more “at-bats,” as KRAFTON Chairman Chang Byung-gyu put it:
“We want to stand at the plate as many times as possible to hit a home run. Even with failures, bold investments are how we build global mega IPs.”
In addition to FunnyStorm, KRAFTON invested in:
Playgig (US): ₩26.3B / 14.81% stake
Gardens Interactive (US): ₩15.9B / 10.15% stake
People Can Fly Group (Poland): ₩42.3B / 10% stake
This aggressive investment stance comes despite a 14% YoY drop in KRAFTON’s operating profit in the first half of 2023, highlighting the company’s long-term commitment to developing global IPs beyond Korea’s traditionally MMO-heavy market.