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Photo: Krafton |
[Alpha Biz= Kim Jisun] Krafton has approved amendments to its corporate bylaws incorporating key shareholder rights reforms, while simultaneously drawing criticism for adopting a cap on board size that some argue could weaken minority shareholder influence.
At its annual general meeting held on March 24 in Seoul, Krafton approved revisions reflecting recent changes to the Commercial Act, including the introduction of separate election of audit committee members and provisions for electronic shareholder meetings. The company also removed provisions seen as obstacles to adopting cumulative voting.
However, shareholders also approved a measure to limit the number of directors, a move criticized by some as potentially undermining the effectiveness of cumulative voting by restricting opportunities for minority shareholders to gain board representation. The National Pension Service, a major shareholder, voted against the proposal, but it was passed without significant opposition from minority shareholders.
At the meeting, CEO Kim Chang-han and Chairman Jang Byung-gyu were reappointed as inside directors, with Kim securing a third consecutive term as CEO. Kim said the company will accelerate its transition from a PUBG-centered structure to a broader franchise model based on new intellectual property (IP).
Krafton reported record annual revenue of 3.33 trillion won last year, with operating profit exceeding 1 trillion won for a second consecutive year. The company plans to expand its global collaborations for PUBG across PC and console platforms while diversifying its portfolio with new IP-driven titles.
Krafton also outlined plans to operate a pipeline of more than 20 new titles this year and expand into emerging technologies such as artificial intelligence.
In addition, Kim Min-young, Vice President of Content for Asia-Pacific at Netflix, was appointed as an outside director, alongside Bora Jung, advisor at Korea Credit Data, and Yeom Dong-hoon, CEO of Megazone Cloud, who will serve as outside directors and audit committee members.
The company also confirmed a shareholder return policy of more than 1 trillion won through 2028, including annual dividends of around 100 billion won and share buybacks totaling over 700 billion won, all of which will be fully retired. The dividend for the latest fiscal year was set at 2,240 won per common share, payable on April 22.
Despite the reforms, concerns remain that limiting board size could reduce opportunities for minority shareholders to participate in governance, particularly under expanded cumulative voting rules.
Krafton said the decision was made with operational efficiency in mind.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
