Krafton develops plans to create a sustainable future focused on the environment, social and governance to grow the value of company and various stakeholders in the short and long term, and realizes them. In addition, Krafton practices sustainability by managing not only financial risks but also non-financial risks.
Environment
| # | Items | Detailed items |
Activities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 1.1 | Environmental management system | Environmental information disclosure |
•
Disclosing green management organization, water and energy use, waste generation, etc.
for 2021 on the Environmental Management Information System |
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| 1.2 | Operational environmental impact and eco-efficiency | Energy consumption |
•
Energy consumption by location for 3 years
(*1)
Computed with sales revenue in hundred million on consolidation basis
(*2)
Reduction rate
–
Energy consumptions has risen as Yeoksam office was newly opened in July 2021.
–
Energy consumptions has risen due to shift from telecommuting to office work after COVID-19 in 2022.
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| 1.3 | Energy conservation |
•
Encourage energy saving culture to employees through resource saving campaigns
•
Details of automatic power off setting
–
Large display in front of elevator: 22:00
–
Meeting room air conditioner (summer): 1st 20:00, all shut down 23:50
•
Lighting
–
Use LED lights (Pangyo, Yeoksam: Dimming function / Seocho: Only On-Off is allowed)
–
Meeting room lighting: Apply sensors, etc. to automatically power off when not using
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| 1.4 | Resources recycling |
•
Using recyclable paper shopping bag for employees
•
Using A4 recycled paper
–
Use ‘recycled pulp’ that uses waste paper as raw material instead of ‘natural pulp’ when producing paper, Reduce greenhouse gas emissions from the ‘pre-manufacturing stage’ as ‘wood collection and cutting/processing stage’ have been excluded
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| 1.5 | Carbon emissions reduction |
•
Operating shuttle bus
–
Shuttle bus use rate: about 120 applicants as of March 2023 (around 10%)
•
Shuttle bus
–
By office: Yeoksam, Seocho, Pangyo
–
Between stations: Gangnam Station, Yeoksam Station
•
Not operating vehicles for business purpose (corporate cars)
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| 1.6 | Resources conservation and environmental protection |
•
Employee campaign (HUB notice)
–
Upload more than one post per quarter
–
Upload posts or ads about resource saving and environmental protection
•
Collecting Nespresso coffee capsules separately
–
Participate in recycling program run by Nespresso
•
Promoting using tumbler at in-house cafe
–
Provide coupon when tumbler is used
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| 1.7 | Management of climate change risks and climate-related opportunities | GHG(Greenhouse Gas) emissions |
•
GHG emissions by location for 3 years
(*1)
Computed with sales revenue in hundred million on consolidation basis
(*2)
Reduction rate
–
Greenhouse gas emissions has risen as Yeoksam office was newly opened in July 2021.
–
Greenhouse gas emissions has risen due to shift from telecommuting to office work after COVID-19 in 2022.
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| 1.8 | GHG reduction |
•
Using game server cloud service
–
Currently KRAFTON is using about 20,000 cloud (A**, M**) instances as of April 2023
•
Not operating own data centers due to using game server cloud service
–
A few physical servers for in-house information systems located in third-party’s data center with lease
–
Not significant greenhouse gas emissions
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Social
| # | Items | Detailed items | Activities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 2.1 | Industrial safety and health | Employee safety and health |
•
Operating Industrial Safety and Health Committee (employee member, employer member / hold meetings on a quarterly basis)
–
Measure annual air quality (for all offices)
–
Conduct bake out when moving into the Seocho office
–
Company-wide training on AED heart defibrillator
–
Annual fire drill training (Yeoksam and Pangyo in 2022 / Will also hold at Seocho in 2023)
–
Detect wiretapping, eavesdropping and illegal filming (closed space, meeting room, rest room, etc.)
–
Install dimmable equipment by replacing lighting at Pangyo (2022)
–
Semi-annual risk assessment activities (industrial safety and health committee activities)
–
Addressing agenda discussed at Industrial Safety and Health Committee meeting such as elevator issues
–
Adopted ISOS services that provides comprehensive safety management services during overseas business trips starting 2022 (covers both business travelers/dispatch employees, 300 business trips in 2022)
•
Company policy on occupation safety and health
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| 2.2 | Human resources development | Employee status |
•
Diversity of employees
(*1)
Krafton, Inc. members as of December 31, 2022 (excluding registered executives)
•
Employee turnover (*1)
(*1)
Based on regular employees
(*2)
Regardless of the organization’s intention, it is an individual-led decision to leave the organization with all reasons except non-voluntary turnover and relocation to affiliates.
(*3)
A recommendation to resign, dismissal during probation, etc. through which work relationships are terminated mainly in line with the initiative of the organization.
•
The voluntary turnover rate in 2022 is 9.2%, which is the industry average.
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| 2.3 | Employee health promotion |
•
Operating a system to promote employees’ health
–
Offer health check-up (employee and one family member)
–
Purchase a group insurance policy
–
Provide exercise expenses
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| 2.4 | Work and life balance |
•
Implement a selective working hours policy
–
Flexible working hours, excluding core time from 11:00 AM to 4:00 PM
•
Implement a telecommuting policy
–
Operation of telecommuting at least once a week at the discretion of the team unit
•
Operating KRAFTON daycare center (Yeoksam, Pangyo)
–
Little Fore (max. 180)
•
Operating an approved leave system
–
Refresh leave, long service leave, medical check-up, moving, birthday, paid sick leave, etc.
•
Operating a self-approval leave system
–
94.3% of annual leave used (as of end-2022)
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| 2.5 | Pregnancy support programs |
•
Providing reserved parking spots for pregnant employees
•
Operating nursing rooms
•
Providing maternity leave and leave of absence for parental needs
•
Reduction of working hours during pregnancy
•
Leave for prenatal health check-up
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| 2.6 | Employee family care |
•
Congratulations and condolences
–
Providing congratulatory and condolence support for the wedding, death, birth, child’s admission to elementary school, etc. and support for congratulations and operating a congratulation and condolence leave system
|
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| 2.7 | Employee housing support |
•
Interest-free housing loan
•
Housing loan interest assistance
•
Helping new employees settle in
–
Sharehouse
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| 2.8 | Fair employment |
•
Established the anti-discrimination policy
–
Stated in Articles 4 and 5 of the Work Rules
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| 2.9 | Employee communication |
•
Active Communication with employees Communication
–
Gathering employees’ feedback and opinions through the Board of Communication(labor-management council) meeting every month from 2018 to the present(2023)
▪
Held 12 times in 2021, discussing and dealing with 44 agendas
▪
Held 12 times in 2022, discussing and dealing with 26 agendas
▪
Held 12 times in 2023, discussing and dealing with 22 agendas
|
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| 2.10 | Employee satisfaction survey |
•
Conducting employee satisfaction surveys
–
Resigned employees: Conducting a survey on workplace satisfaction and experience at the time of resignation
–
New employees: Conducting a satisfaction survey targeting new employees three months after joining the company
–
Employee benefits: Conducting a satisfaction survey on employee benefits
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| 2.11 | Employee education |
•
Operation of support systems for certification acquisition and external education for all members, including part-timers and contractors
–
Offering training expense reimbursements of KRW 2M per person annually
▪
Job training / Foreign language training / Self-improvement training
•
Operating ‘HELLO, KRAFTON’, an on-boarding Program for new employees
–
4 steps on-boarding program for new employees’ soft landing during 3 months
•
Operating core value training
–
Program for clear understanding and practice of vision and core values aligned with organization’s direction
•
Conducting training program performance measurement(satisfaction surveys)
•
Operating partnership with external training institutions
•
Operating status of the education system
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| 2.12 | Leadership education |
•
Operating a program to strengthen leadership competencies
–
Training for newly-appointed leaders
–
Training for team leaders
–
Training for top management
•
Conducting training program performance measurement(satisfaction surveys)
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| 2.13 | Legal compulsory education |
•
Providing Legal compulsory education once a year
–
Prevention of workplace sexual harassment
–
Personal data protection
–
Prevention of workplace bullying
–
Promotion of disability awareness
–
Retirement pension education
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| 2.14 | Employee Stock Ownership Plan |
•
Started operations of Employee Stock Ownership Plan (ESOP) concurrent with KOSPI listing in August 2021
•
Operating status of Employee Stock Ownership Plan(ESOP) as of end of 2022
•
(*1) Including individuals who applied for membership at the initial establishment of employee stock ownership association but currently do not hold any ESOP shares
|
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| 2.15 | Employee performance evaluation and reward |
•
Performance review
–
Conducting performance reviews twice a year (mid-year, year-end)
–
Providing multi-faceted feedback to leaders
•
Operating stock-based compensation programs for all employees
–
RSU
–
Stock options
–
ELI
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| 2.16 | Talent nurturing |
•
Business-education partnership
–
KAIST Jungle
▪
Recuritment in progress every year through this program from April 2021
•
Internship program
–
AI Fellowship: An internship program for bachelor’s degree students in top domestic/overseas universities (Jun-Aug)
–
AI Research Internship
▪
An internship program for master’s degree or PhD students in top domestic/overseas universities (Jun-Aug)
▪
Hiring Interns in 2022 and conducting research with the aim of achiecing results
–
Internship on a rolling basis
▪
Job posting and hiring on a rolling basis at the request of the team and will review transition to permanent employment if needed
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| 2.17 | Employment creation |
•
Selected as a leading company for job creation
–
In 2019, 2020 and 2022
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| 2.18 | Respect for fundamental rights | Human rights management |
•
Human rights management policy
–
Code of Conduct Chapter 4 ‘Promise to Colleagues’
▪
4-A. Respect for diversity and anti-discrimination
▪
4-B. Workplace bullying and sexual harassment
▪
4-C. Respect for the privacy of our employees
▪
4-D. Feedback based on careful consideration
▪
4-E. Protection of our members
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| 2.19 | Employee harassment report |
•
Established a system to address employee harassment issues
–
Culture Team collects reports and provides counseling (workplace harassment, sexual harassment, etc.)
▪
Collects reports via HUB or email. The process is announced on HUB.
–
Employee harassment issues are addressed based on the company policy (Workplace sexual harassment/bullying prevention and response policy)
–
A formal investigation is conducted by Compliance Dept. The investigation results and review committee’s feedback is shared with internal directors
•
Operating Speak Up
–
Can file reports on HUB or the company’s website
–
Business Assessment Office to first review the case and request Compliance Dept. to review it if it is deemed that the case should be handled by Compliance Dept.
▪
After the review, discuss disciplinary actions and measures to prevent a recurrence if necessary (consultation with HR)
▪
Report the final investigation results to management (Chairman)
▪
5 cases were reported and processed in 2022 (100% completed)
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| 2.20 | Employee Mind Care |
•
Employee Mind Care
–
Psychological counseling program to help employees address issues such as job and interpersonal stress, mental health, personal concerns, and addiction
–
Outsourcing Mind Care program via a specialized organization with 280 centers nationwide
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| 2.21 | Fair competition | Unfair competition or anti-competitive |
•
Company policy on unfair competition or anti-competitive
–
Code of Conduct Chapter 5 ‘Promise to partners’
▪
5-A. Compliance with fair trade and competition laws, etc.
▪
5-B. Pursuit of cooperation
•
Conduct risk management related to unfair competition or anti-competitive
–
Identifying risk-related business sectors and relevant departments
–
Analyzing legal risk and understanding the status of compliance control
–
Implementing detailed compliance checks for major legal risks
•
Conducting unfair competition or anti-competitive education
–
Education on group of large-scale enterprises
▪
Targeting the finance department and subsidiaries
▪
Training on precautions such as overview, disclosure, and reporting related to internal transactions
–
Education on unfair competition
▪
Targeting the business department
▪
Training on overview of regulations on unfair trade practices, detailed types, and precautions
–
Education on precautions for subcontracting transactions
▪
For business department
▪
Training of subcontracting definition, regulatory trends, and dispute prevention checklist
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| 2.22 | Improvement of consumer satisfaction | Protection of consumer rights and interests |
•
Company policy on consumer rights and interests
–
Code of Conduct Chapter 1 ‘Promise to fans’
▪
1-A. A game made with craftsmanship
▪
1-B. A healthy game
▪
1-C. Continuous and stable service
▪
1-D. Open communication with fans
▪
1-E. Protecting personal information
•
Consumer rights protection activities
–
Processing of civil complaints in the event of a dispute over consumer rights and interests(187 cases handled in 2023)
–
Promoting the protection of consumer rights and interests by providing information on suspects in the case of investigative agencies(37 cases handled until 2023)
–
Responding to complaints from the Korea Consumer Agency to protect consumer rights and interests(11 cases handled until 2023)
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| 2.23 | Local community engagement and development | Social contribution |
•
Refer to ‘CSR’ page
–
Company policy on CSR
–
Details and achievements of community contribution activities
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| 2.24 | Data protection and cyber security | Data protection system |
•
Company policy on information security and privacy
–
Code of Conduct Chapter 1 ‘Promise to fans’
▪
1-E. Protecting personal information
•
Composition and Operation of the security and privacy department
–
Designation of a Chief Information Security Officer (CISO) based on Article 45-3 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, and Article 36-7 of the Enforcement Decree of the same Act.
–
Designation of a Personal Information Protection Officer (CPO) based on Article 31 of the Personal Information Protection Act and Article 32 of the Enforcement Decree of the same Act.
–
Establishment and operation of a dedicated organization to systematically oversee and implement the company’s information security activities.
•
Risk Management Plan
–
Identification, evaluation, improvement, and management of administrative, physical, technical, and legal risks for information and personal information protection.
•
Operation of Education and Awareness Enhancement Programs
–
For new employees (once a month upon hiring)
–
For all employees including contractors (once a year)
–
IT/Privacy and Security Job-specific Training
▪
For engineering positions (at least once a year)
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| 2.25 | Data protection certification |
•
External audit for IT security (once a year)
•
ISMS-P certification (Information Security and Personal Information Protection Management System certification)
–
A system where the Korean Internet & Security Agency (KISA) or certification bodies verify that a
series of measures and activities for information security and personal information protection comply with certification criteria, based on Article 47 of the Act on Promotion of Information and Communications Network Utilization and Information Protection
▪
The initial certification is valid for 3 years (subject to annual post-assessments to evaluate the effectiveness of the certification), and subsequent assessments are conducted for either initial or renewal certification.
–
Current certification status for Krafton:
▪
ISMS19-014 (2019.04.01. ~ 2022.03.31.)
▪
ISMS-P-2022-005 (2022.03.02. ~ 2025.03.31.)
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| 2.26 | Creation of an environment for data protection |
•
Running data protection-related campaigns
–
Providing pocket guide to data protection
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| 2.27 |
Data protection activity
|
•
Management of information security regulations and development and revision of guidelines (once a year or as needed)
•
Conducting Information Security Audits and Inspections to Validate and Improve the Effectiveness of Security Regulations and Activities (once a year)
•
Regular Vulnerability Assessments and Improvements for Information Security and Personal Information Protection (at least once a year, as needed)
•
Conducting Breach/IT Disaster Simulations for Ensuring Service Continuity (once a year)
•
Supervision of Personal Information Processing Contractors (once a year)
•
Notification of Personal Information Usage History (once a year)
•
Subscription to Personal Information Protection Liability Insurance (ongoing)
•
Implementation of Technical, Administrative, and Physical Security Measures for Personal Information Protection (ongoing)
–
Establishment and operation of account and authorization management processes
–
Application of secure authentication/access methods
–
Encryption policy and management
–
Log retention and management, review
–
Designation and management of secure areas
–
Implementation of Information Security and Personal Information Protection Operation Reports (once a month)
•
Management of Personal Information Processing Records (ongoing)
•
Disclosure of Matters related to Personal Information Processing Outsourcing, Third-party Provision, and Overseas Transfers (ongoing)
•
Selected as an Excellent Company for Information Security Investment by KISA for four consecutive years from 2020 to 2023.
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Governance
| # | Items | Detailed items |
Activity |
|---|---|---|---|
| 3.1 | Corporate governance | Corporate governance |
•
Corporate governance
–
‘Governance‘ page
–
Refer to ‘Corporate Governance Report‘ disclosed on May 31, 2023
•
Board Skills Matrix
–
Refer to ‘Governance‘ page
|
| 3.2 |
Shareholder Return
|
•
Establishment of a three-year shareholder return policy for 2023-2025 through a board resolution on February 7, 2023.
–
Acquisition of treasury shares within a limit of 40% of the amount excluding investment from the previous year’s Free Cash Flow (FCF) each year
–
In 2023, 100% of the acquired treasury shares were retired
–
Plan to retire at least 60% of the treasury shares acquired in 2024-2025
|
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| 3.3 | Business ethics | Speak Up policy |
•
Operating Speak Up
–
Can file reports on HUB or the company’s website
–
Business Assessment Office to first review the case and request Compliance Dept. to review it if it is deemed that the case should be handled by Compliance Dept.
▪
After the review, discuss disciplinary actions and measures to prevent a recurrence if necessary (consultation with HR)
▪
Report the final investigation results to management (Chairman)
▪
5 cases were reported and processed in 2022 (100% completed)
|
| 3.4 | Compliance activities |
•
Annually conducting a compliance audit in each area
•
Conduct legal risk assessment and compliance control status checks by selecting 10 critical items such as governance, ethics, fair trade, and information protection, etc.
•
Conducting control activities regarding compliance and ethics in each operation
•
Prepare a compliance control system report and a semi-annual compliance report once a year and report to the management
|
|
| 3.5 | Employee ethics improvement |
•
Spreading the Code of Conduct
•
Conducting code of ethics training for new employees, including full-time and contract workers
•
Providing compliance training sessions such as the prevention of insider trading
|
|
| 3.6 | Practice and promotion of gaming ethics |
•
“Chapter 1 A Healthy Game” in the Code of Conduct
•
Posting a notice about violations of in-game ethics
•
Reviewing the ethical appropriateness of vendors when pursuing collaborations
•
Running campaigns to prevent gaming violence
|
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| 3.7 | Fraud prevention |
•
Prevention of bribery and corruption
–
Run related campaigns
▪
Send Chuseok Holiday Gift announcements
▪
Send in-house manners campaign e-mails
–
Review and answer relevant inquiries from employees
▪
Inquiries related to the Code of Conduct (gifts, entertainment, unfair trade, conflict of interests, etc.)
▪
Inquiries related to the amendment and interpretation of the Code of Conduct
▪
Inquiries related to various Compliance-related systems such as the Pre-notification of Stock Trades by Officers and Employees
•
Conducting anti-corruption work through the Business Assessment Office which is an independent internal audit department
–
Conducting consulting and investigation
–
Communicate the Business Assessment Office’s role, responsibility, authority,
independence, objectivity and work scope to all employees through the Business Assessment Charter
•
Anti-bribery and embezzlement policy
–
Code of Conduct Chapter 2 ‘Promise to the company’
▪
2-D. Prohibiting illegal solicitation/bribery
–
Code of Conduct Chapter 3 ‘Promise to investors’
▪
Embezzlement and breach of trust
|
ESG Grade
MSCI Ratings
| Year | Grade |
|---|---|
| 2024 | BBB |
| 2023 | BB |
| 2022 | BB |
KCGS Ratings
| Year | Grade | Enviromental | Society | Governance |
|---|---|---|---|---|
| 2023 | B+ | C | A | A |