S.Korean game developer Krafton acquires Japan’s ADK for $517 million

Krafton Inc., a major South Korean game publisher, has acquired Japan's leading advertising and animation group ADK for 75 billion yen ($517 million), as it accelerates its push to become a cross-media content powerhouse spanning Asia.

Krafton, best known for the global blockbuster game PlayerUnknown’s Battlegrounds (PUBG), said in a regulatory filing on Tuesday that it has acquired BCJ-31, the parent company of ADK Holdings, from Bain Capital Japan.

ADK, one of Japan’s top three advertising firms, has played a central role in producing more than 300 iconic anime titles over its 70-year history, including Doraemon, Yu-Gi-Oh!, and Crayon Shin-chan. ADK’s annual transaction volume hovers around 348 billion yen a year.

The purchase marks the first time a Korean company has taken control of a major Japanese anime studio and is seen as a pivotal move in Krafton’s ambition to build an Asian intellectual property (IP) hub spanning gaming, animation and storytelling.

The deal will significantly expand Krafton’s IP portfolio beyond games and represents a strategic shift toward owning and producing original content across entertainment formats, analysts said.

TO DIVERSIFY BEYOND PUBG FRANCHISE

The move also comes as Krafton seeks to diversify beyond the PUBG franchise, which continues to account for a majority of its revenue.

“This acquisition is not just about expanding our content library. It’s about building a platform for storytelling that transcends mediums,” said Krafton Chief Executive Kim Chang-han. “We plan to leverage ADK’s rich legacy in animation and our expertise in global game publishing to create new forms of interactive IP.”

Industry officials said the acquisition will give Krafton a production and distribution foothold in Japan, enabling the company to accelerate plans to adapt game franchises into animated series, cinematic content and other media. It also signals a broader trend of convergence between the gaming and animation industries in Asia, they said.

Krafton has already been experimenting with media expansion.

In 2022, it launched Moonbreaker, a turn-based strategy game developed with US-based Unknown Worlds Entertainment, paired with an original sci-fi universe supported by audio drama and cinematic storytelling.

“We don’t see ourselves as just a gaming company,” said Chang Byung-gyu, chair of Krafton’s board of directors, who previously hinted at such diversification while explaining its IPO plan in 2021. “Our destiny is to evolve into a multi-platform content creator, blending games, animation and digital storytelling.”

TURNING POINT FOR KOREA’S GAMING INDUSTRY

Analysts said the acquisition may serve as a turning point for Korea’s gaming industry, helping domestic game developers tap into a wider global content market.

According to the Ministry of Culture, Sports and Tourism, games accounted for more than half of Korea’s 22 trillion won ($16.2 billion) in cultural content exports in 2023.

The purchase also offers ADK a path to digital transformation and access to Krafton’s international distribution muscle.

The Japanese studio has traditionally focused on domestic television and merchandising, but has struggled to scale in a streaming-dominated world.

Krafton’s acquisition is part of a wider regional strategy that includes investments in studios and developers across India and Southeast Asia.

The company said it aims to position itself as a central storytelling node linking IP from Japan, Korea and emerging Asian markets, and exporting them to global audiences.

“This is the first major step in a long-term vision,” said a Krafton official. “We’re building the foundation to create, own and globally distribute IP that resonates across borders.”

Write to Jung-hoon Ahn and Eun-Yi Ko at Ajh6321@hankyung.com

In-Soo Nam edited this article.