Shares of KRAFTON surged 10.5% to KRW 201,000 after the South Korean gaming giant behind PUBG announced it would repurchase KRW 300 billion (roughly $220 million) worth of its own stock and cancel every share it buys back — a move that directly shrinks the share count and boosts the slice of profits belonging to each remaining investor. KRAFTON Bets KRW 917 Billion on Itself This Year — Is the PUBG Maker's Stock Still Cheap or Is the Buyback Masking Deeper Questions?
Shares of KRAFTON jumped 10.5% to KRW 201,000 after the company behind the blockbuster game PUBG unveiled a KRW 300 billion (~$220 million) share buyback with every repurchased share destined for cancellation — a move that permanently reduces the total number of shares, handing remaining investors a bigger piece of the pie.
• The Biggest Year of Cash Returns in Company History
This latest buyback brings KRAFTON's total shareholder returns for 2026 to KRW 917.2 billion (~$683 million), combining new buybacks and cancellations (KRW 699.9 billion), existing treasury share cancellations (KRW 117.7 billion), and cash dividends (KRW 99.6 billion). That dwarfs the prior three-year program from 2023–2025, which totaled KRW 693 billion across all three years — meaning KRAFTON is now spending more in a single year than it did in the entire previous cycle, an increase of more than 44%.
• Record Revenue, But the Stock Has Been Punished Anyway
KRAFTON posted record first-half 2026 revenue of KRW 2.66 trillion, up 73% year-over-year, with operating profit of KRW 972.5 billion, up 38%. Yet the stock traded at just 29% below its 52-week high of KRW 344,000 before today's pop , and still sits at roughly KRW 201,000 — a trailing price-to-earnings ratio of roughly 10.7x. KRAFTON explicitly stated the buyback "reflects its view that the current stock price does not adequately account for its growth potential."
• Management Is Putting Its Money Where Its Mouth Is
The company plans to acquire up to 1,651,073 shares between November 4 and February 3, 2027, through broker Mirae Asset Securities. Crucially, cancellation — not warehousing — is the plan, so unlike buybacks that just park shares in the treasury, this directly shrinks the share count and boosts earnings per share. CFO Bae Dong-geun has been blunt: "We believe the current stock price level remains undervalued."
• Earnings Tomorrow Could Add Fuel — or Doubt
KRAFTON releases Q3 results on November 5 , just one day after this buyback begins. If operating momentum holds, the buyback looks like savvy capital allocation at a discount. If results disappoint, investors may wonder whether management is spending cash to prop up sentiment rather than reinvest in growth. At ~10x earnings with revenue soaring, the market's skepticism has been severe — but whether that gap closes depends on whether PUBG's hot streak and new titles can sustain the pace.