It was created in November 2018 to serve as the parent company for Bluehole, founded by Chang Byung-gyu in Seoul in March 2007, and its subsidiaries.

The company has published several notable video game titles including TERA, PUBG: Battlegrounds, New State Mobile, The Callisto Protocol and Moonbreaker.

[9] Chang previously established Neowiz in 1997, along seven other co-founders, moved on to found search engine developer First Snow in 2005, and sold that venture in 2006.

[11] In August 2017, Chinese holding company Tencent announced that it had, following a rejected acquisition bid, invested an undisclosed amount of money into Bluehole.

Originally, Ginno Games had been founded by Kim Chang-han to develop MMOs, but around 2014, he had been forced to lay off a third of his staff as their last product had not performed well.

Unrelated to Battlegrounds, Prologue is called an exploration of gameplay and technology, and said "to give players unique and memorable experiences, each and every time they play".

[29] At the end of 2019 Tencent Games announced some big plans for PUBG in India's upcoming future, as well as its general eSports.

[31] On 9 November 2020, it was announced that Krafton will participate in G-Star 2020 to introduce their upcoming multiplayer online game Elyon through Krafton, an e-sports reality show where celebrities and streamers entered a special school that specialized in battlegrounds conduct episodes and talk related to PUBG Series 3.

Celebrities (G)I-dle's Song Yuqi and Ailee and streamers Chyo Man and Choi Kwang-won appeared in the show.

[32] In September 2020, the Government of India banned PUBG Mobile in the country along with several apps published by Chinese vendors, in this case Tencent Games, due to data privacy issues.

Drones, shields, weapon customization, neon sights, reviving teammates and 'recruiting' knocked out enemies are just some of the new mechanics in PUBG: New State.

[38] In June 2019, a new studio called Striking Distance was opened in conjunction with Glen Schofield, the co-founder of Sledgehammer Games.

Striking Distance, headed by Schofield as chief executive officer, was set to develop narrative-driven games based on PUBG.

[51] Unknown Worlds Entertainment, founded in 2001 in San Francisco, California, is a video game studio renowned for titles like Natural Selection and Subnautica.

In August 2022, they announced the development of Moonbreaker, a turn-based strategy game set in a sci-fi universe crafted by author Brandon Sanderson.

Subnautica 2 is scheduled to enter early access in 2025 and will initially be available on Windows PC and Xbox Series X/S platforms.

[57] 5minlab is a South Korean company founded in 2013, known for developing Smash Legends, Baam Squad, Toy Clash, among others.

[59][60] Notable games developed by 5minlab after its acquisition by Krafton include Kill the Crows, a fast-paced top-down western arena shooter, and Private Military Manager.

[64] On August 11, 2024, Krafton announced their purchase of Tango Gameworks and the intellectual property rights to Hi-Fi Rush from Microsoft Gaming following the studio's closure earlier that June.

[72] Nine staff members of Maui Games, a fraction of that company's total employee count, were reemployed directly within Bluehole.

[79] Delusion developed mobile games such as Guardian Stone, Jellipo, House of Mice and, most notably, Castle Burn.

[81] In September 2020, En Masse Entertainment announced that it would be shutting down its offices after 10 years of service in the gaming industry,[82] where it was decided that Krafton would be publishing TERA's Console version globally[83] - taking over a self-publishing role, in place of En Masse Entertainment, whereas the PC version would be published by Gameforge.

[84] Krafton AI, headquartered in Seoul, is a research and development center focused on advancing deep learning technologies.

At CES 2025, Krafton presented two deep learning-based game technologies developed in collaboration with NVIDIA: PUBG Ally and Smart Zoi.