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Is Krafton A Chinese Company

When it comes to the question of whether Krafton is a Chinese company, there is a need for clarity and understanding. The gaming industry has seen significant global growth, and the origins of companies are often of interest, especially in a geopolitical context.

Krafton, the developer behind the popular game PlayerUnknown’s Battlegrounds (PUBG), is a South Korean company. The company was founded in 2009 by Chang Byung-gyu and has since become a major player in the gaming industry.

is krafton a chinese company is krafton a chinese company

The Origins of Krafton

Krafton, formerly known as Bluehole, is a South Korean video game developer and publisher. The company is best known for creating the wildly popular game PlayerUnknown’s Battlegrounds (PUBG). Since its release in 2017, PUBG has become a global phenomenon, attracting millions of players worldwide. With its success, Krafton has secured a prominent position in the gaming industry and garnered significant attention from gamers, investors, and the media.

Despite being a South Korean company, there have been discussions and debates surrounding Krafton’s connections to China. This controversy primarily stems from the fact that Tencent, a Chinese multinational conglomerate, has a significant stake in Krafton. Tencent is one of the largest companies in the gaming industry and has investments in various game developers and publishers around the world.

It’s important to understand the extent of Tencent’s involvement with Krafton and whether it has any influence over the company’s operations and decision-making processes. Let’s delve deeper into the relationship between Krafton and Tencent to determine if Krafton can indeed be considered a Chinese company.

Ownership of Krafton

Krafton was initially founded in February 2007 by Chang Byung-gyu, a South Korean entrepreneur. The company gained recognition with the success of its first game, TERA, a popular massively multiplayer online role-playing game (MMORPG). In March 2012, the company rebranded itself as Bluehole and continued to release several successful titles, including PUBG.

However, in 2018, Tencent acquired a 11.5% stake in Bluehole, the then-parent company of Krafton, for approximately $560 million. This investment gave Tencent a substantial minority interest in Bluehole, making them one of the largest shareholders. The acquisition of shares by Tencent raised concerns among some about the potential influence of the Chinese company on Krafton’s operations.

It’s worth noting that share ownership does not always equate to direct control or decision-making power. While Tencent became a significant shareholder in Bluehole, the South Korean management team continued to oversee the day-to-day operations and creative direction of Krafton. The company operates as an independent entity, developing and publishing its games.

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Furthermore, in July 2021, Krafton went public on the South Korean stock exchange, further diluting Tencent’s ownership stake. Currently, Tencent holds approximately 9.8% of Krafton’s shares. This indicates that Krafton is predominantly owned and controlled by South Korean individuals and institutions, minimizing the influence of Tencent on the company’s operations and decision-making processes.

Independent Management and Decision-making

Krafton operates autonomously with an independent management team that is responsible for all operational and strategic decisions. Key executives and creative minds within the company, such as CEO Kim Chang-han, have maintained control and authority over the direction of Krafton’s games and business ventures.

Tencent’s investment in Krafton has primarily been a financial one, aiming to capitalize on the success of PUBG and its potential for future growth. While Tencent may have some level of influence as a major shareholder, it does not exert direct control over Krafton’s internal affairs or decision-making processes.

It’s important to note that Krafton has a diverse portfolio of games and has continued to develop new titles independently of Tencent’s involvement. The company has released games like TERA, PUBG Mobile, and more recently, PUBG: New State. These releases demonstrate Krafton’s ability to innovate and create successful games without relying solely on Tencent’s influence.

In conclusion, while Tencent has a significant stake in Krafton, the South Korean company maintains its independence in terms of management and decision-making. Krafton operates as a separate entity with its own creative direction and business strategies. Therefore, it would not be accurate to categorize Krafton as a Chinese company solely based on Tencent’s ownership.

Implications of Tencent’s Ownership

Even though Krafton remains an independent entity, Tencent’s ownership stake does raise certain implications and concerns. It’s important to understand and evaluate the potential impact Tencent could have on Krafton’s operations and the gaming industry as a whole.

Access to the Chinese Market

As one of the largest gaming companies in China, Tencent has extensive knowledge and influence within the Chinese gaming market. The company has strong partnerships and connections with various entities in the Chinese gaming industry, including regulatory bodies and distribution platforms.

Krafton’s association with Tencent provides certain advantages in terms of navigating the Chinese market. Tencent’s expertise can enable Krafton to establish a stronger presence in China and expand the reach of its games to a massive player base. This access to the Chinese market can be beneficial for Krafton’s growth and revenue generation.

However, it’s important to consider the potential challenges and limitations associated with operating in a highly regulated market like China. Regulatory policies and restrictions on content can impact a game’s availability and affect the creative freedom of game developers. These factors may require Krafton to make certain adjustments or modifications to their games to comply with Chinese regulations.

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Despite the potential benefits, Krafton’s reliance on Tencent for access to the Chinese market also poses risks. Any changes in Tencent’s business strategies or relationships with regulatory bodies can influence Krafton’s opportunities in China. It’s crucial for Krafton to diversify its market presence and not solely rely on the Chinese market for its success.

Data Privacy and Security Concerns

Another significant concern surrounding Tencent’s ownership of Krafton relates to data privacy and security. Tencent, as a Chinese company, is subject to Chinese regulations, including data localization requirements and potential government access to user data.

Given the popularity of games like PUBG, which collect and process player data, there are concerns about the potential misuse or unauthorized access to user data by Tencent or the Chinese government.

Krafton has taken steps to address these concerns by implementing data security measures and protocols to safeguard user information. The company has also assured players that their data is protected and handled in accordance with relevant privacy laws. However, it’s important for gamers to be aware of the potential risks involved and make informed decisions regarding their personal data.

To mitigate concerns, Krafton has also partnered with other organizations, independent of Tencent, to handle certain aspects of its operations. For example, it has collaborated with Microsoft Azure, a trusted cloud services provider, to host game data and ensure the privacy and security of player information.

Overall, while there may be legitimate concerns regarding data privacy and security, it’s essential to recognize that Krafton has taken steps to prioritize privacy and protect user data.


In conclusion, Krafton, the company behind the popular game PUBG, is a South Korean company with strong ties to Tencent, a Chinese multinational conglomerate. While Tencent has a significant stake in the company, Krafton operates independently with its own management team and decision-making processes.

Although Tencent’s ownership provides Krafton with certain advantages, such as access to the Chinese gaming market, it also raises concerns about data privacy and potential influence over the company.

Ultimately, it is essential to understand the nuances of Krafton’s relationship with Tencent and evaluate the implications it may have on the company’s operations, the gaming industry, and data privacy. By considering these factors, gamers and industry experts can make informed assessments and decisions regarding Krafton and its games.

Krafton Ownership:South Korean company with independent management
Tencent Ownership:10% stake, primarily a financial investment
Implications:Access to Chinese market, data privacy concerns

Key Takeaways

  • Krafton is a South Korean gaming company.
  • Krafton developed the popular game PlayerUnknown’s Battlegrounds (PUBG).
  • Although Krafton has investments from Tencent, it is not a Chinese company.
  • Krafton is listed on the Korean stock exchange.
  • Krafton’s headquarters are located in South Korea.

Frequently Asked Questions

In this section, we will address some frequently asked questions related to Krafton and its association with China.

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1. What is Krafton?

Krafton is a South Korean video game holding company. It was formerly known as Bluehole and is the creator of popular games like PlayerUnknown’s Battlegrounds (PUBG) and TERA. Krafton has expanded its reach internationally and has subsidiaries and offices in various countries.

Krafton has become a leading player in the gaming industry, and its games have a significant global presence. The company focuses on developing and publishing high-quality multiplayer games that engage millions of players around the world.

2. Is Krafton a Chinese company?

No, Krafton is not a Chinese company. It is a South Korean company that was founded in 2007 by Chang Byung-gyu. The company’s headquarters is located in Seongnam, South Korea. While Krafton has expanded its operations globally and collaborates with various partners, it is important to note that it is not affiliated with China.

Krafton’s games, such as PUBG, have gained popularity in China and other countries, but the company itself is not Chinese-owned or operated. It is a South Korean company with a global presence in the gaming industry.

3. Does Krafton have any connections with Chinese companies?

Krafton has collaborated with various partners and companies globally, including Chinese companies, for business purposes. However, it is important to differentiate between collaborations and ownership/control of the company.

While Krafton may have partnerships or collaborations with Chinese companies, it is not owned or controlled by any Chinese entity. Krafton remains a South Korean company with its own management and operations.

4. Are Krafton games banned in China?

In September 2021, the Chinese government implemented new regulations regarding the approval of video games, which resulted in the suspension of new game approvals. As a result, some Krafton games, including PUBG, faced temporary bans in China.

However, Krafton has been working on complying with the regulations and modifying its games to meet the requirements set by the Chinese authorities. It is important to note that the ban is not specific to Krafton games and affects the overall gaming market in China.

5. Can I trust Krafton and its games?

Krafton has been a reputable player in the gaming industry and has gained the trust of millions of players worldwide. The company has a strong track record of developing and publishing successful games that offer enjoyable gaming experiences.

However, as with any online interactions and purchases, it is advisable to exercise caution and follow best practices to protect your personal information and ensure the security of your gaming experience. This includes using strong passwords, being mindful of potential scams or phishing attempts, and staying informed about the latest security measures provided by Krafton and other gaming platforms.

Krafton is not a Chinese company. It is a South Korean video game developer.

Krafton is best known for creating the popular game PlayerUnknown’s Battlegrounds (PUBG) and its spin-offs.


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