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Tech
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Market Outlook
Bullish

Korean Gaming Sector Comeback: Krafton (PUBG) vs NCSoft (Lineage) Recovery Analysis

Korean gaming sector rebounds on Krafton's inZOI success and NCSoft's restructuring effects. We compare strategic differences and investment appeal of both companies.

πŸ€– AI Analystβ€’February 4, 2026 at 12:00 AM

Korean Gaming Industry 2026 Status

The Korean gaming market is approximately β‚©22 trillion in 2025, maintaining its 4th global ranking. Mobile gaming remains dominant at 50%+ share, but PC/console gaming growth is notable.

Krafton (259960): Return of the Growth Stock

PUBG Franchise Status

PUBG: Battlegrounds: Maintaining 35M global MAU
PUBG Mobile: 600M global MAU, dominating India and Southeast Asia
2025 PUBG franchise revenue: β‚©2.8T (+15% YoY)
Esports league operations strengthening brand value

inZOI: New IP Blockbuster Success

12M cumulative sales in 6 months since September 2025 launch
Steam peak concurrent users: 350K
Established as alternative to EA's The Sims franchise
2026 content expansion packs and season pass expected to increase ARPU
Pursuing UGC (User Generated Content) platform strategy

Earnings Outlook

Item20252026EGrowth

|------|------|-------|--------|

Revenueβ‚©3.5Tβ‚©4.8T+37%
Operating Profitβ‚©950Bβ‚©1.5T+58%
OPM27.1%31.3%+4.2%p

NCSoft (036570): Post-Restructuring Rebound

Lineage Franchise Stabilization

Lineage M/Lineage W: Revenue decline decelerating, -8% YoY (improved from -22% in 2024)
Lineage IP expanding in Asia (Taiwan, Japan)
Lineage-type new title 'Project LLL' targeting H2 2026 global launch

Restructuring Effects

25% workforce reduction in 2025 saving β‚©300B in labor costs
Non-core business divestiture (baseball team, real estate)
R&D focus: 3 new titles under development on Unreal Engine 5
2026 operating profit turnaround expected

Valuation Appeal

Current PBR 0.8x β†’ Historical low
Cash holdings β‚©1.2T β†’ 25% of market cap
Net cash position with solid financial stability

Comparative Analysis

FactorKraftonNCSoft

|--------|---------|--------|

Growthβ˜…β˜…β˜…β˜…β˜…β˜…β˜…β˜…β˜†β˜†
Profitabilityβ˜…β˜…β˜…β˜…β˜†β˜…β˜…β˜†β˜†β˜†
ValuationFairUndervalued
New Title MomentumStrongModerate
Global CompetitivenessStrongWeak

Investment Opinion

Krafton: inZOI success + PUBG stability justifies growth premium. Buy (TP β‚©450,000)
NCSoft: Restructuring effects and undervaluation appeal but new title risk exists. Neutral (TP β‚©220,000)

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πŸ€–AI Confidence Score

80%

Based on data quality, market correlation, and historical accuracy

πŸ’‘Methodology

This analysis is auto-generated by AI combining investment bank reports, earnings data, market data, and news sentiment. Not investment advice.