A wave of executive reappointments during this year's shareholder season reflects that caution. Krafton renewed the terms of Chairman Chang Byung-gyu and CEO Kim Chang-han for a third consecutive term, while Nexon retained CEO Lee Jung-hun after posting a record 4.5 trillion won in annual revenue.
Netmarble and NHN are also set to extend leadership tenures on the back of strong earnings.
The continuity underscores a structural shift in the industry, where blockbuster titles now take five years or more to develop, making leadership changes mid-cycle a costly risk.
At the same time, publishers are accelerating a pivot beyond their traditional mobile-gaming base toward console and PC platforms, targeting global markets.
Pearl Abyss' Crimson Desert, a domestically developed triple-A open-world title, has already sold more than three million copies since its March debut, highlighting the industry's growing ambition to compete globally.
Yet the rollout also exposed a new tension point: artificial intelligence.
Players discovered AI-generated artwork embedded in Crimson Desert, including distorted visual elements, prompting an apology from Pearl Abyss. The company said the assets were created during early development using experimental tools and were unintentionally left in the final version.
The backlash contrasted sharply with Nexon's Arc Raiders, which has been widely praised for using procedural AI to enhance gameplay environments. The title has sold over 14 million copies since its October 2025 launch, underscoring how AI can add value when deployed transparently.
The divergence highlights a widening fault line across the industry: AI that enhances user experience tends to be rewarded, while undisclosed use — particularly in visible creative assets — risks consumer backlash.
"AI output still reaches only about 90 percent of human quality," said Jung Nae-hun, a professor at the Tech University of Korea. "Studios tend to avoid using it for visible elements like characters or interfaces. When it slips through, it invites backlash."
Korea's regulatory framework is also evolving. The Framework Act on Artificial Intelligence, which took effect in January, requires disclosure of AI-generated content, though the industry has raised concerns that additional rules could create overlap and confusion during iterative development processes.
Beyond AI, publishers are facing broader structural challenges.
Game production remains excluded from Korea's content production tax credit system, even as film and television receive incentives of up to 30 percent. Officials have acknowledged the gap, noting that flagship game titles now routinely cost more than 1 trillion won to develop.
Meanwhile, legal risks are also emerging alongside technological shifts. A U.S. court recently ruled that Krafton breached its acquisition contract with Unknown Worlds Entertainment, after executives consulted ChatGPT in shaping a takeover strategy — a case that underscores the growing intersection between AI use and corporate governance.
North America's share of exports climbed to 19.5 percent, signaling early traction in Western markets, while industry employment expanded to around 87,600.
Still, publishers say the numbers mask deeper constraints.
"The biggest thing the government can do is curb excessive regulation," Jung said. "That remains a heavier drag on the industry than any tax gap."
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