Seoul: Krafton Inc., a South Korean game publisher renowned for its popular game PUBG: Battlegrounds, reported a net loss in the fourth quarter, impacted by one-off labor welfare expenses and costs associated with its planned headquarters relocation.

According to Yonhap News Agency, Krafton posted a net loss of 22.7 billion won (US$15.5 million) during the October-December period, a significant shift from a profit of 491.2 billion won the previous year, as per the company's regulatory filing. The operating profit for the three-month period declined 98.8 percent year-on-year to 2.4 billion won, while sales increased 48.9 percent to 919.7 billion won.

Krafton cited the decline in profits as resulting from a one-time expense of 81.6 billion won linked to a labor welfare fund for employees over the next four years and expenses related to the company's planned move to new headquarters in Seoul. Despite the quarterly loss, Krafton reported a net profit of 733.7 billion won for the entire year of 2025, marking a 43.7 percent decrease from the previous year.

The company's annual operating profit dropped 10.8 percent year-on-year to 1.05 trillion won. However, annual sales rose 22.8 percent to a record 3.32 trillion won, largely driven by a 16 percent year-on-year increase in sales from PUBG: Battlegrounds.