Krafton Levels Up with K-pop Power

• Krafton is investing in K-pop to tap into global fan communities and offset lagging domestic game markets.
• Instead of developing unique idol games, publishers are using artists to bolster their existing titles via themed items and virtual events.
• Regulatory concerns and short-term schemes emphasize the hazards of such collabs.

Krafton, the publisher of PUBG: Battlegrounds, plans to invest ₩ 100 billion (~ $67.9 million USD) in The Black Label, a K-pop agency founded by producer Teddy Park that has represented artists such as Taeyang and Rosé. The label has also produced original soundtracks, like Golden for KPop Demon Hunters. While both companies have not fully disclosed the details of the agreement, the investment is largely regarded as part of Krafton's overall diversification strategy.

Krafton's move indicates an aim to capture globally scalable intellectual property as domestic game sales decline and competition heats up, broadening its aspirations beyond core gaming. According to The Korea Herald, the investment brings fresh funds to The Black Label ahead of a future IPO, while also positioning Krafton for cross-media collaboration in music, artists, and interactive entertainment.

Krafton actively partnered with NewJeans in 2024, offering themed in-game content in PUBG: Battlegrounds along with materials like cosmetic items, weapon skins, emotes, and music integration with songs such as OMG and Super Shy. Nonetheless, Gaming Amigos reported that Korea's Fair Trade Commission penalized Krafton in 2025, for a 2024 misleading loot box advertising using NewJeans-themed merchandise, after the game marketed an apparently assured payout scheme that did not reflect reality. Krafton then compensated players with almost ₩ 1.1B and distributed in-game currency worth around ₩ 9.8B in return. But with NewJeans now involved in turmoil, Krafton’s recent deal could be a move to work with other artists while also potentially avoiding any more controversial issues from happening again.

Gaming’s Playbook: Why Publishers Are Buying Into K-pop IP?

The approach is consistent with a well-known industry pattern set by Netmarble, reported The Korea Herald. The company had invested ₩ 201.4B in HYBE about 2.5 years before the agency's October 2020 IPO, betting early on BTS' global fandom power. Netmarble was looking for defensible intellectual property in the face of increasing competition, and used BTS' international reach to experiment with cross-media formats that combined games, performances, and narrative-driven material.

As noted by game industry officials and experts, publishers are shifting away from developing mass-market games centered solely on K-pop artists and instead are using artist recognition to enhance existing titles internationally. The artist's influence is also used to pursue other games-related ventures, such as virtual experiences, including VR concerts, which are rising in popularity among younger audiences. The change underlines the industry's perception of K-pop as a valuable, export-driven entertainment IP that can help game companies thrive globally while avoiding potential risks associated with artist-centric development.

For instance, BLACKPINK's Lisa appeared as a key character at Fortnite Festival Season 12, while also performing virtually in Melodie Mars outfit. The season also included Lisa-themed clothes and music tracks including, Rockstar, and New Woman, through the game's "Starlux Music Pass," as well as extra cosmetic items related to her branding. By incorporating her music into an interactive gaming experience, the partnership positioned Lisa as a major entertainment personality within a significant gaming environment. Lisa was also chosen as PlayStation's global ambassador in 2025, a collaboration that, although it did not directly involve her in gameplay, but placed her as a cultural bridge between K-pop and gaming consumers.

According to cultural analyst Lim Hee-yun, the gaming industry's experience in managing fandom-driven consumers closely resembles K-pop's audience structure. Lim also stated that building games with virtual artists might result in synergies between gamers and K-pop fans, thereby boosting future revenue sources. However, industry insiders warn that such investments are frequently motivated by short-term gains rather than a fundamental strategy shift.