KRAFTON has risen to become the most profitable mid-sized company.
On the 22nd, ChosunBiz analyzed the ‘settlement of account for the first quarter of 2025’ from the Korea Exchange and found that KRAFTON recorded the highest operating profit margin among mid-sized companies, excluding large corporations, at 52.3%. An operating profit margin of 52.3% means that for every 100 won worth of goods sold, the company makes a profit of more than 52 won. The operating profit margin is a representative indicator of corporate revenue.
◇Top 5 mid-sized companies by revenue
Founded by Chairman Jang Byung-kyu in 2007, KRAFTON recorded revenues of 874.1 billion won and operating profit of 457.2 billion won in the first quarter, marking its highest performance ever. The global success of its flagship game 'PUBG' and the popularity of the game 'ENJOY', released in March, have played a significant role.
KRAFTON's rise to the top mid-sized company in terms of profitability is also influenced by the characteristics of the gaming industry. Although massive funding is invested during the early stages of game development, once a game is successful, the operational expenses for game maintenance, development, and server operation are less compared to other manufacturing industries.
In particular, PUBG can be enjoyed on various devices such as PCs, consoles, and mobile, and it continues to perform well globally. The region that led the growth in the first quarter was India. In other words, KRAFTON has built a business model that steadily increases revenue worldwide based on its game intellectual property while incurring relatively lower expenses.
The establishment of a 'partial pay model' where users can enjoy the game for free but are charged when purchasing items or playing later levels has also contributed to increasing profitability.
The second place goes to mid-sized semiconductor equipment company HANMI Semiconductor. It recorded revenues of 147.3 billion won and operating profit of 69.6 billion won in the first quarter, with an operating profit margin of 47.2%. HANMI Semiconductor is currently led by Chairman Kwak Dong-shin, the eldest son of its late founder, Kwak Nok-gwon. HANMI Semiconductor produces key equipment for high-bandwidth memory (HBM) used in AI semiconductors. As the demand for TC bonders skyrocketed in the era of generative AI, profitability has also improved.
The price of each TC bonder for HBM, known to be around 3 billion won, also contributes to the high profit margin. However, the company is currently experiencing conflicts with its largest client, SK hynix, leading to growing interest in its future trajectory.
The third place also goes to a gaming company, DoubleU Games, which recorded an operating profit margin of 33.8%. Led by CEO Kim Ga-ram, DoubleU Games posted revenues of 161.9 billion won and operating profit of 54.7 billion won in the first quarter. DoubleU Games focuses on 'social casino games' like 'DoubleDown Casino', where players communicate with opponents on social media, which differentiates them from KRAFTON.
Mid-sized food company Samyang Foods ranked fourth with an operating profit margin of 25.3%. The global success of its 'Buldak' brand, launched in 2012, contributed significantly. Samyang Foods recorded its highest-ever performance in the first quarter, driven by growth in overseas markets such as China, the U.S., and Southeast Asia, with revenues of 529.0 billion won and operating profit of 133.9 billion won.
Samyang Foods is expanding its product line to cater to local markets, starting with the original Buldak Bokkeummyeon and adding flavors such as Carbonara and Phu Phat Pong Curry. Currently, 80% of the company's total revenue comes from overseas.
The fifth place goes to mid-sized crop protection and fertilizer manufacturer KYUNGNONG. In the first quarter, it recorded revenues of 136.7 billion won and operating profit of 33.6 billion won, with an operating profit margin of 24.5%. Its enhanced production efficiency, based on 70 years of experience, played a significant role. Founded in 1955 by the late Lee Jang-pyo, KYUNGNONG is currently led by his second son, Lee Byung-man. KYUNGNONG has production facilities in Daegu and Ulsan and a nationwide distribution network that includes Jeju Island.
The business targeting farmers is also influenced by seasonal characteristics. Farmers purchase fertilizers and pesticides in the first quarter to prepare for the busy farming season that begins in May. Currently, KYUNGNONG is strengthening its smart farm business to enhance agricultural productivity in line with technological advancements such as AI.
◇Global reach, technological prowess, and production efficiency: the three keys to profitability
The characteristics of the 'top 5 mid-sized companies by profitability' are global outreach and technological prowess that others cannot easily emulate. KRAFTON has looked overseas since its inception, and Samyang Foods has also targeted China and the U.S. markets alongside its domestic success with Buldak Bokkeummyeon. In particular, Samyang Foods can be seen as a company divided into before and after the Buldak brand.
HANMI Semiconductor has focused solely on 'semiconductor equipment' for 45 years and has elevated its technological competitiveness to a world-class level. KYUNGNONG, with 70 years of history, boasts the highest production efficiency in domestic crop protection and fertilizers. KYUNGNONG's operating profit margin of 24.5% is a figure that is difficult for even large manufacturers in the manufacturing sector to match.
Yoo Hyo-sang, director of the Unicorn Management Economic Research Institute, noted, “While pioneering overseas markets, strong technological competitiveness, and improving production efficiency may sound easy, having all three in corporate management is extremely difficult,” and added, “It cannot be achieved in an instant; it requires looking ahead and accumulating one step at a time.” Director Yoo emphasized this as the direction domestic small and mid-sized enterprises should take.