GRAVITY Co., Ltd. Files 20-F for Fiscal Year Ended December 31, 2023

TL;DR

<b>GRAVITY Co., Ltd. has submitted its 20-F annual report for the fiscal year 2023, detailing its financial and operational status.</b>

AI Summary

GRAVITY Co., Ltd. (GRVY) filed a Foreign Annual Report (20-F) with the SEC on April 26, 2024. GRAVITY Co., Ltd. filed its annual 20-F report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business address is located at 15F, 396 World Cup Buk-ro, Mapo-gu, Seoul, M5, 121-795. The filing includes information on ordinary shares and American Depositary Shares. The company is incorporated in M5 and operates in the Services-Computer Processing & Data Preparation industry (SIC 7374).

Why It Matters

For investors and stakeholders tracking GRAVITY Co., Ltd., this filing contains several important signals. This 20-F filing provides a comprehensive overview of GRAVITY Co., Ltd.'s financial performance and business operations for the fiscal year 2023, which is crucial for investors to assess the company's health and future prospects. The report contains detailed information on share structure, including ordinary shares and American Depositary Shares, which is important for understanding the company's capitalization and investor base.

Risk Assessment

Risk Level: — GRAVITY Co., Ltd. shows moderate risk based on this filing. The filing is a standard annual report (20-F) and does not contain any immediate red flags or significant negative developments, indicating a routine disclosure.

Analyst Insight

Review the detailed financial statements and business segment information within the 20-F to understand GRAVITY Co., Ltd.'s performance and strategic direction for 2023.

Key Numbers

• 2023-12-31 — Fiscal Year End (GRAVITY Co., Ltd.'s fiscal year end)
• 2024-04-26 — Filing Date (Date the 20-F was filed)
• 7374 — SIC Code (Standard Industrial Classification for GRAVITY Co., Ltd.)

Key Players & Entities

• GRAVITY Co., Ltd. (company) — Filer of the 20-F report
• GRVY (company) — Ticker symbol for GRAVITY Co., Ltd.
• 20-F (regulator) — Form type filed by GRAVITY Co., Ltd.
• Seoul (company) — City where GRAVITY Co., Ltd. is located

FAQ

Industry Context

GRAVITY Co., Ltd. operates within the Services-Computer Processing & Data Preparation industry, focusing on digital content and services.

Regulatory Implications

As a foreign private issuer, GRAVITY Co., Ltd. files the annual 20-F report with the SEC, which provides a comprehensive overview of its business and financial condition.

What Investors Should Do

1. Analyze the financial statements and disclosures in the 20-F for the fiscal year ended December 31, 2023.
2. Research GRAVITY Co., Ltd.'s business segments and operational performance as detailed in the filing.
3. Compare the 2023 results with previous years to identify trends and assess growth.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 20-F filing.
• 2024-04-26: Filing Date — The date GRAVITY Co., Ltd. officially submitted its 20-F report.

Year-Over-Year Comparison

This filing is the annual 20-F report for the fiscal year 2023, providing updated information compared to previous filings.

Key Financial Figures

• $ — urrency of the Kingdom of Thailand; "US$," "U.S. dollar," or "Dollar" are to the

Filing Documents

• grvy-20231231.htm (20-F) — 3592KB
• exhibit2ddescriptionofrigh.htm (EX-2.D) — 72KB
• exhibit41ro1_jpx12thxamend.htm (EX-4.1) — 34KB
• exhibit121ceocertification.htm (EX-12.1) — 11KB
• exhibit122cfocertification.htm (EX-12.2) — 11KB
• exhibit131ceocertification.htm (EX-13.1) — 7KB
• exhibit132cfocertification.htm (EX-13.2) — 7KB
• exhibit97policyrelatingtor.htm (EX-97) — 39KB
• grvy-20231231_g1.jpg (GRAPHIC) — 60KB
• 0001628280-24-018421.txt (&nbsp;) — 15458KB
• grvy-20231231.xsd (EX-101.SCH) — 114KB
• grvy-20231231_cal.xml (EX-101.CAL) — 113KB
• grvy-20231231_def.xml (EX-101.DEF) — 398KB
• grvy-20231231_lab.xml (EX-101.LAB) — 855KB
• grvy-20231231_pre.xml (EX-101.PRE) — 678KB
• grvy-20231231_htm.xml (XML) — 3212KB

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS 5 PART I 6 ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS 6 ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE 6 ITEM 3. KEY INFORMATION 6 ITEM 3.A. Reserved 6 ITEM 3.B. Capitalization and Indebtedness 6 ITEM 3.C. Reasons for the Offer and Use of Proceeds 6 ITEM 3.D.

Risk Factors

Risk Factors 6 ITEM 4. INFORMATION ON THE COMPANY 30 ITEM 4.A. History and Development of the Company 30 ITEM 4.B. Business Overview 30 ITEM 4.C. Organizational Structure 65 ITEM 4.D. Property, Plants and Equipment 65 ITEM 4 A. Unresolved Staff Comments 66 ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS 66 ITEM 5.A. Operating Results 66 ITEM 5.B. Liquidity and Capital Resources 79 ITEM 5.C. Research and Development, Patents and Licenses, Etc. 81 ITEM 5.D. Trend Information 82 ITEM 5.E. Critical Accounting Estimates 82 ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES 82 ITEM 6.A. Directors and Senior Management 82 ITEM 6.B. Compensation 85 ITEM 6.C. Board Practices 85 ITEM 6.D. Employees 88 ITEM 6.E. Share Ownership 89

F

ITEM 6. F . Disclosure of a registrant's action to recover erroneously awarded compensation 90 ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS 90 ITEM 7.A. Major Shareholders 90 ITEM 7.B. Related Party Transactions 91 ITEM 7.C. Interests of Experts and Counsel 91 ITEM 8. FINANCIAL INFORMATION 91 ITEM 8.A. Consolidated Statements and Other Financial Information 92 ITEM 8.B. Significant Changes 92 ITEM 9. THE OFFER AND LISTING 92 ITEM 9.A. Offer and Listing Details 92 ITEM 9.B. Plan of Distribution 93 ITEM 9.C. Markets 93 ITEM 9.D. Selling Shareholders 93 ITEM 9.E.

Dilution

Dilution 93 ITEM 9.F. Expenses of the Issue 93 ITEM 10. ADDITIONAL INFORMATION 93 ITEM 10.A. Share Capital 93 2 Table of Contents ITEM 10.B. Memorandum and Articles of Incorporation 93 ITEM 10.C. Material Contracts 99 ITEM 10.D. Exchange Controls 99 ITEM 10.E. Taxation 101 ITEM 10.F. Dividends and Paying Agents 111 ITEM 10.G. 111 ITEM 10.H. Documents on Display 111 ITEM 10.I. Subsidiary Information 111 ITEM 10.J. Annual Report to Security Holders 111 ITEM 11.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 111 ITEM 12.

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES 112 ITEM 12.A. Debt Securities 112 ITEM 12.B. Warrants and Rights 113 ITEM 12.C. Other Securities 113 ITEM 12.D. American Depositary Shares 113 PART II 114 ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES 114 ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS 114 ITEM 15.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 114 ITEM 16. RESERVED 115 ITEM 16.A. Audit Committee Financial Expert 115 ITEM 16.B. Code of Ethics 115 ITEM 16.C. Principal Accountant Fees and Services 115 ITEM 16.D. Exemptions from the Listing Standards for Audit Committees 116 ITEM 16.E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers 116 ITEM 16.F. Changes in Registrant's Certifying Accountant 116 ITEM 16.G. Corporate Governance 116 ITEM 16.H. Mine Safety Disclosure 116

I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

ITEM 16.I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 116 ITEM 16.J. I nsider Trading Policies 116 ITEM 16.K. Cybersecurity 116 PART III 118 ITEM 17.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 118 ITEM 18.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 118 ITEM 19. EXHIBITS 118 3 Table of Contents CERTAIN DEFINED TERMS Unless the context otherwise requires, references in this annual report on Form 20F (this "Annual Report") to: "ADRs" are to the American depositary receipts that evidence our ADSs; "ADSs" are to our American depositary shares, each of which represents one share of our common stock; "China" or the "PRC" are to the People's Republic of China (excluding, for the purposes of this Annual Report, Taiwan, Hong Kong, and Macau, unless specifically indicated otherwise); "Chinese Yuan" are to the currency of China; "EUR" or "Euro" are to the currency of the Eurozone consisting of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain; "Gravity," "the Company," "we," "us," "our," or "our company" are to Gravity Co., Ltd. and our subsidiaries, except as otherwise indicated or required by context; "Hong Kong" are to the Hong Kong Special Administrative Region of the PRC; "Indonesian Rupiah" are to the currency of the Republic of Indonesia; "Japanese Yen" or "JPY" are to the currency of Japan; "Korea" are to the Republic of Korea; "Macau" are to the Macau Special Administrative Region of the PRC; "NT dollar" or "NT$" are to the currency of Taiwan; "Philippine Peso" are to the currency of the Republic of the Philippines; "SGD" or "S$" are to the currency of Singapore; "Taiwan" are to Taiwan, the Republic of China; "Thai Baht" or "THB" are to the currency of the Kingdom of Thailand; "US$," "U.S. dollar," or "Dollar" are to the currency of the United States of America; and "Won," "Korean Won," or "W" are to the currency of Korea. For your convenience, and unless otherwise stated, this Annual Report contains translations of certain Won amounts into U.S. dollars at the noon buying rate in New York City for cable transfers in Korean Won as cert

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS Not applicable.

OFFER STATISTICS AND EXPECTED TIMETABLE

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE Not applicable.

KEY INFORMATION

ITEM 3. KEY INFORMATION

B. CAPITALIZATION AND INDEBTEDNESS

ITEM 3.B. CAPITALIZATION AND INDEBTEDNESS Not applicable.

C. REASONS FOR THE OFFER AND USE OF PROCEEDS

ITEM 3.C. REASONS FOR THE OFFER AND USE OF PROCEEDS Not applicable.

D. RISK FACTORS

ITEM 3.D. RISK FACTORS You should carefully consider the risks described in this section, together with all of the other information included in this Form 20-F, in evaluating us and our shares. The following risk factors could adversely affect our business, financial condition, results of operations, and the price of our shares. Risk Factor Summary The following is a summary of the principal risks discussed in greater detail in the following pages, that could materially and adversely affect our business, results of operations, cash flows, and financial condition. Risks Relating to our Business We currently depend on our main game, Ragnarok Online, and games developed from Ragnarok Online, for a significant portion of our revenues. If we are unable to consistently and timely develop, acquire, license, launch, market or operate commercially successful online and mobile games, our business, financial condition, and results of operations may be materially and adversely affected. We may not be successful in making our mobile games profitable, and our profit margins from mobile games may be relatively lower than the profits we have enjoyed historically for online games. We depend on our overseas licensees for a portion of our revenues and rely on them to distribute, market, and operate our games and comply with applicable laws and government regulations. We operate in a highly competitive industry and compete against many large companies. To continue to be successful, we must leverage the global connectivity and distribution of mobile platforms, and our relationships with mobile platform providers, which in many cases have the unilateral ability to amend their policies and terms and conditions for applications and developers. We publish games developed by third parties, which exposes us to a number of potential operational, legal, and reputational risks. 6 Table of Contents Unexpected network interruptions, security breaches, or computer virus attacks cou

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