Invested 100 Billion Won in Indian Company... What Came Back Was PUBG 'Ban'

[Asia Economy Reporter Kang Nahum] Krafton, which had been targeting the Indian market through large-scale investments exceeding 100 billion KRW, is facing an emergency. Battlegrounds Mobile India (BGMI), which was being serviced locally, has been removed from local app markets. The reason for the removal has not yet been disclosed, but if the situation prolongs, significant losses are expected.

According to industry sources on the 31st, Krafton has recently made investments totaling about 100 billion KRW in Indian IT companies such as esports company Nodwin Gaming, game streaming platform Loco, and web novel platform Pratilipi within the past year.

The plan was to increase BGMI's market share by creating employment effects and contributing to the development of the local gaming industry through strategic investments in the Indian IT and media ecosystem. They also focused on localization efforts by providing India-centric content and products, such as Indian festival commemorative events and pricing policies considering local users' purchasing patterns.

The results were outstanding. Dong-geun Bae, Krafton's Chief Financial Officer (CFO), stated during the Q1 earnings conference call, "The number of purchasing users and profitability indicators are rapidly increasing with products for local users. BGMI's revenue in April reached an all-time high."

However, Krafton's efforts were instantly nullified. Google and Apple recently removed BGMI from 'Google Play' and 'Apple App Store' respectively, following instructions from the Indian government.

The specific reason for blocking BGMI access has not yet been revealed. However, some speculate that this decision by the Indian government is related to Tencent, Krafton's major shareholder. It is reported that public opinion has emerged in India calling for regulation, claiming BGMI is the same game as Battlegrounds Mobile, which was previously banned. Since Tencent is Krafton's second-largest shareholder, there are concerns about connections to Chinese capital.

Previously, in October 2020, the Indian government blocked 118 Chinese apps, including Battlegrounds Mobile, amid escalating border disputes between India and China. At that time, Tencent in China was responsible for the global service of Battlegrounds Mobile.

There is also speculation that a recent incident in Lucknow, northern India, where a 16-year-old boy shot and killed his mother because she prevented him from playing games, may have influenced this removal decision.

Since government policies once decided are difficult to reverse, the BGMI ban is likely to be prolonged. Facing inevitable management setbacks, Krafton is actively working to resolve the situation. A Krafton official stated, "We are currently checking the exact situation regarding the suspension of downloads on the two major app stores in the Indian region with relevant departments and companies."

This content was produced with the assistance of AI translation services.