Korea's Game Giants Bet 600 Billion Won on AI and IP R&D Race

By Editorial Team

Securing intellectual property (IP) and advancing artificial intelligence (AI) technology have become pivotal strategies in Korea's gaming industry, leading to intense competition in research and development (R&D) investments. Netmarble, a major player in the industry, outpaced its competitors by allocating a substantial amount to R&D.

According to data from the Financial Supervisory Service, Netmarble's consolidated R&D spending in 2025 reached a staggering 616.4 billion won, the highest in the gaming sector. This investment accounted for 21.74% of the company's total revenue of 2.8351 trillion won. The surge in R&D expenditure was primarily driven by the development costs associated with multiple upcoming titles. Netmarble plans to launch eight new titles this year, including "The Seven Deadly Sins: Origin" and "Sol: Enchant," aiming to enhance profitability through quality gameplay.

The adoption of AI-driven development environments is a significant factor contributing to the rise in R&D costs. Netmarble is leveraging AI for in-game voice generation, character creation, and background image production to enhance operational efficiency and reduce development expenses.

Krafton, another key player in the Korean gaming industry, closely followed Netmarble by investing 612.3 billion won (18.4% of revenue) in R&D last year. The company has been aggressively integrating AI into its operations, with a focus on enhancing the graphics of its flagship IP "Battlegrounds (PUBG)" using Unreal Engine 5.

Pearl Abyss, known for its release of "Crimson Desert," allocated 128.6 billion won to R&D, representing the highest ratio of revenue spent on R&D in the industry. NCSoft, despite a decrease in R&D spending from the previous year, remains a technological powerhouse.

Nexon, Korea's largest game company by revenue, invested approximately 249.9 billion won in R&D. The company, listed on the Japanese stock exchange, is concentrating on developing next-generation titles to expand popular franchises.

Industry experts highlight the shift towards AI-based automation in game development and the escalating competition to secure premium IPs for the global market. The trend indicates that R&D spending by game companies is poised to continue growing in the future.