# EDGAR Filing Document

**Accession Number:** 0001313310
**File Stem:** 0001628280-23-010017
**Filing Date:** 2023-3
**Character Count:** 46262
**Document Hash:** bfb04f4001938e79b5f0aead437b1332
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-23-010017.hdr.sgml**: 20230331

**ACCESSION NUMBER**: 0001628280-23-010017

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 4

**CONFORMED PERIOD OF REPORT**: 20230331

**FILED AS OF DATE**: 20230331

**DATE AS OF CHANGE**: 20230331

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** GRAVITY Co., Ltd.
- **CENTRAL INDEX KEY:** 0001313310
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-BUSINESS SERVICES, NEC [7389]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** M5
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-51138
- **FILM NUMBER:** 23783206

**BUSINESS ADDRESS:**
- **STREET 1:** 15F, 396 WORLD CUP BUK-RO
- **STREET 2:** MAPO-GU
- **CITY:** SEOUL
- **STATE:** M5
- **ZIP:** 121-795
- **BUSINESS PHONE:** 82-2-2132-7800

**MAIL ADDRESS:**
- **STREET 1:** 15F, 396 WORLD CUP BUK-RO
- **STREET 2:** MAPO-GU
- **CITY:** SEOUL
- **STATE:** M5
- **ZIP:** 121-795

**REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934** 

For the month of March 2023

Commission File Number 000-51138

**GRAVITY Co., Ltd.** ———————————————————————————————————————

(Translation of registrant's name into English)

15F, 396 World Cup buk-ro, Mapo-gu, Seoul 121-795, Korea

———————————————————————————————————————

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: [x] Form 20-F [ ] Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]

------

**RESULTS OF THE ANNUAL GENERAL MEETING OF SHAREHOLDERS OF GRAVITY CO., LTD.** 

Gravity Co., Ltd. (the "Company") held its Annual General Meeting of Shareholders (the "AGM") at the Conference Room # 2 located at 3F, Business Tower, 396 World Cup buk-ro, Mapo-gu, Seoul 121-795 Korea at 10:00 a.m. on March 31, 2023.

The AGM was held with a quorum present and the agenda items were resolved by the shareholders in accordance with the Korean Commercial Code and the Company's Articles of Incorporation as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Agendum 1: the shareholders approved the Company's consolidated and separate financial statements as of and for the years ended December 31, 2022 and 2021 prepared in accordance with International Financial Reporting Standards as adopted by the Republic of Korea, or Korean IFRS, and audited in accordance with Korean Standards on Auditing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Agendum 2: the shareholders approved the reappointment of eight directors, Messrs. Hyun Chul Park, Yoshinori Kitamura, Kazuki Morishita, Kazuya Sakai, Heung Gon Kim (who are inside directors), Jung Yoo, Yong Seon Kwon, and Kee Woong Park (who are independent directors) and the appiontment of one director, Ms. Hyo Eun Lim (who is independent director).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Agendum 3: the shareholders approved the amount of KRW 2,500,000,000 as the maximum amount of compensation payable to directors as a group for fiscal year 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Agendum 4 : the shareholders approved the amendment to Articles of Incorporation.

Furthermore, the Company's 2022 Annual Business Report was presented to the shareholders at the AGM.

The Company's Board of Directors, consisting of the eight reelected directors and one elected director, held a meeting immediately following the AGM (the "Board Meeting"). At the Board Meeting, Mr. Hyun Chul Park was reappointed as Chief Executive Officer and Mr. Yoshinori Kitamura was reappointed as Chairman of the Board of Directors.

Messrs. Jung Yoo, Yong Seon Kwon, and Kee Woong Park were reappointed as Audit Committee members at the Board Meeting.

The Company expects to file the Company's consolidated and separate financial statements, including the notes thereto, which are prepared in the Korean language prepared in accordance with Korean IFRS and audited in accordance with Korean Standards on Auditing as of and for the years ended December 31, 2022 and December 31, 2021 ("2022/2021 Korean IFRS consolidated and separate financial statements") with the Financial Supervisory Service of Korea no later than April 14, 2023. The condensed English translation version of the 2022/2021 Korean IFRS consolidated and separate financial statements is expected to be submitted to the United States Securities and Exchange Commission on Form 6-K at the same time.

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| GRAVITY CO., LTD. | GRAVITY CO., LTD. |
| By: | /s/ Heung Gon Kim |
| Name: | Heung Gon Kim |
| Title: | Chief Financial Officer |

---

Date: March 31, 2023

------

Exhibit Index

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99. 1 | <u>[Gravity Reports Consolidated Financial Results for 202](exhibit9912.htm)[2](exhibit9912.htm)</u> |
| 99. 2 | <u>[Gravity Reports Separate Financial Results for 202](exhibit9922.htm)[2](exhibit9922.htm)</u> |
| 99. 3 | <u>[202](exhibit9932.htm)[2](exhibit9932.htm)[Annual Business Report](exhibit9932.htm)</u> |

---

## Exhibit 99.1

**Exhibit 99.1**

**<u>GRAVITY REPORTS CONSOLIDATED FINANCIAL RESULTS FOR 2022</u>**

Seoul, South Korea, March 31, 2023 - GRAVITY Co., Ltd. (NasdaqGM: GRVY) ("Gravity" or the "Company"), an online and mobile game developer and publisher based in South Korea, announces its consolidated financial results for the fiscal year ended December 31, 2022, prepared in accordance with International Financial Reporting Standards as adopted by the Republic of Korea. Financial statements are available on Edgar at <u>http://www.sec.gov</u>.

**REVIEW OF FINANCIAL RESULTS** 

**<u>Revenues and Cost of Revenues</u>** 

Revenues for 2022 were KRW 463,618 million (US$367,898 thousand), representing a 12.0% increase from KRW 413,938 million for 2021.

Online game revenue increased by 18.4% to KRW 89,256 million (US$70,828 thousand) in 2022 from KRW 75,370 million in 2021. The increase in online game revenue was mostly increased revenues from *Ragnarok Online* in Taiwan and Thailand.

Mobile game revenue for 2022 was KRW 358,772 million (US$284,699 thousand), representing a 12.1% increase from KRW 320,164 million for 2021. This increase was mainly due to increased revenues from *Ragnarok Origin* which was launched in Taiwan, Hong Kong and Macau on September 15, 2022 and such increase was partially offset by decreased revenues from *Ragnarok Origin* in Korea and *Ragnarok X: Next Generation* in Southeast Asia and Taiwan.

Other revenue was KRW 15,590 million (US$12,371 thousand) in 2022, representing a 15.3% decrease from KRW 18,404 million in 2021.

Cost of revenues was KRW 267,365 million (US$212,164 thousand) in 2022, representing a 19.3% increase from KRW 224,173 million in 2021. The increase in cost of revenues was mainly due to increased commissions paid related to game services for *Ragnarok Origin*.

As a result of the foregoing factors, gross profit for 2022 was KRW 196,253 million (US$155,734 thousand), representing a 3.4% increase from KRW 189,765 million for 2021.

**<u>Selling, General & Administrative Expenses ("SG&A")</u>** 

The Company's total SG&A decreased 0.9% to KRW 91,411 million (US$72,538 thousand) in 2022 compared with KRW 92,201 million in 2021. This decrease in SG&A was mostly attributable to decreased advertising expenses and research and development expenses.

Based on the foregoing factors, the Company recorded an operating income of KRW 104,842 million (US$83,196 thousand) in 2022, compared to an operating income of KRW 97,564 million in 2021.

**<u>Non-operating Income and Non-operating Expenses</u>** 

Non-operating income for 2022 was KRW 5,040 million (US$3,999 thousand) compared with non-operating income KRW 1,737 million in 2021. This increase in non-operating income was primarily due to increased interest income.

Profit before income tax for 2022 was KRW 109,882 million (US$87,195 thousand), compared with profit before income tax of KRW 99,301 million in 2021.

Gravity recorded a net profit of KRW 83,058 million (US$65,909 thousand) in 2022 compared with a net profit of KRW 65,880 million in 2021.

------

The balance of cash and cash equivalents and short-term financial instruments was KRW 336,877 million (US$267,325 thousand) as of December 31, 2022.

*Note*: For convenience purposes only, the KRW amounts have been expressed in U.S. dollars at the rate of KRW 1,260.18 to US$1.00, the noon buying rate in effect on December 30, 2022 as quoted by the Federal Reserve Bank of New York.

## Exhibit 99.2

**Exhibit 99.2**

**<u>GRAVITY REPORTS SEPARATE FINANCIAL RESULTS FOR 2022</u>**

Seoul, South Korea, March 31, 2023 - GRAVITY Co., Ltd. (NasdaqGM: GRVY) ("Gravity" or the "Company"), an online and mobile game developer and publisher based in South Korea, announces its separate financial results for the fiscal year ended December 31, 2022, prepared in accordance with International Financial Reporting Standards as adopted by the Republic of Korea. Financial statements are available on Edgar at <u>http://www.sec.gov</u>.

REVIEW OF FINANCIAL RESULTS

<u>Revenues and Cost of Revenues</u> 

Revenues for 2022 were KRW 232,717 million (US$184,670 thousand), representing a 19.3% decrease from KRW 288,258 million for 2021.

Online game revenue increased by 9.3% to KRW 32,970million (US$26,163 thousand) in 2022 from KRW 30,176 million in 2021. The increase resulted largely from the increase in revenues from *Ragnarok Online* in Taiwan and Korea.

Mobile game revenue for 2022 was KRW 198,512 million (US$157,527 thousand), representing a 22.7% decrease from KRW 256,918 million for 2021. This decrease was mainly due to decreased revenues from *Ragnarok X: Next Generation* in Taiwan and Southeast Asia and *Ragnarok Origin* in Korea and such decrease was partially offset by increased revenues from *Ragnarok Origin* which was launched in Taiwan, Hong Kong and Macau on September 15, 2022 and *Ragnarok Origin* in the United States and Canada.

Other revenue was KRW 1,235 million (US$980 thousand) in 2022, representing a 6.1% increase from KRW 1,164 million in 2021.

Cost of revenues was KRW 112,512 million (US$89,283 thousand) in 2022, representing a 20.7% decrease from KRW 141,815 million in 2021. The decrease in cost of revenues was mainly due to decreased commission paid related to game services for *Ragnarok X: Next Generation and Ragnarok Origin.*

As a result of the foregoing factors, gross profit for 2022 was KRW 120,205 million (US$95,387 thousand), representing a 17.9% decrease from KRW 146,443 million for 2021.

<u>Selling, General & Administrative Expenses ("SG&A")</u> 

The Company's total SG&A decreased 15.0% to KRW 58,060 million (US$46,073 thousand) in 2022 compared with KRW 68,269 million in 2021. This decrease in SG&A was mostly attributable to decreased advertising expenses and research and development expenses.

Based on the foregoing factors, the Company recorded an operating income of KRW 62,145 million (US$49,314 thousand) in 2022, compared to an operating income of KRW 78,174 million in 2021.

<u>Non-operating Income and Non-operating Expenses</u> 

Non-operating income for 2022 was KRW 13,059 million (US$10,363 thousand) compared with non-operating income KRW 14,372 million in 2021. The decrease in non-operating income was primarily due to decreased dividend revenue.

Profit before income tax for 2022 was KRW 75,204 million (US$59,677 thousand), compared with profit before income tax of KRW 92,546 million in 2021.

Gravity recorded a net income of KRW 54,915 million (US$43,577 thousand) in 2022 compared with a net income of KRW 64,733 million in 2021.

------

The balance of cash and cash equivalents and short-term financial instruments was KRW 209,986 million (US$166,632 thousand) as of December 31, 2022.

*Note*: For convenience purposes only, the KRW amounts have been expressed in U.S. dollars at the rate of KRW 1260.18 to US$1.00, the noon buying rate in effect on December 30, 2022 as quoted by the Federal Reserve Bank of New York.

## Exhibit 99.3

**Exhibit 99.3**

**<u>2022 Annual Business Report</u>**

**Table of Contents**

&nbsp;&nbsp;&nbsp;&nbsp;**1.Business Overview**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Business Results and Financial Statements for the Past Three Fiscal Years (2019 – 2022)

&nbsp;&nbsp;&nbsp;&nbsp;**2.Company Overview**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Registered Purpose of the Company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Description of Primary Business

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Problems Confronting the Company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)Business Offices and Game Development Facilities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)Stock

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)Debenture

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)Major Shareholders

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)Investment in Other Companies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9)Directors Holding Concurrent Positions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10)Material Transactions with Related Parties

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11)Significant Creditors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12)Employees

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13)Directors and Auditors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14)Material Events after the End of Fiscal Year 2022

**3. Consolidated Financial Statements as of and for the fiscal years ended December 31, 2022 and 2021**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Consolidated Financial Positions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Consolidated Comprehensive Income

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Consolidated Statements of Changes in Equity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)Consolidated Statements of Cash Flows

&nbsp;&nbsp;&nbsp;&nbsp;**4. Separate Financial Statements as of and for the fiscal years ended December 31, 2022 and 2021**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Financial Positions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Comprehensive Income

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Statements of Appropriation of Retained earnings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)Statements of Changes in Equity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)Statements of Cash Flows

------

**1. Business Overview**

&nbsp;&nbsp;&nbsp;&nbsp;(1)Business Results and Financial Statements for the Past Three Fiscal Years (2020 – 2022)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(In thousands of Korean Won)

---

| | | | |
|:---|:---|:---|:---|
| Category | 2022 | 2021 | 2020 |
| Current assets | 250876266 | 219505575 | 164602523 |
| • Quick assets | 250876266 | 219505575 | 164602523 |
| Non-current assets | 41433074 | 39159998 | 28537796 |
| • Investment asset | 26732334 | 21679845 | 14958641 |
| • Property and Equipment, net | 3520385 | 5608320 | 3176858 |
| • Intangible asset | 3867939 | 3228635 | 2663857 |
| • Other non-current asset | 7312416 | 8643198 | 7738440 |
| Total assets | 292309340 | 258665573 | 193140319 |
| Current liabilities | 28335116 | 48803832 | 48824376 |
| Non-current liabilities | 3382407 | 4184648 | 3370754 |
| Total liabilities | 31717523 | 52988480 | 52195130 |
| Share capital | 3474450 | 3474450 | 3474450 |
| Capital surplus | 27482683 | 27482683 | 27482683 |
| Other components of equity | - | - | 929 |
| Retained earnings | 229634684 | 174719960 | 109987127 |
| Total equity | 260591817 | 205677093 | 140945189 |
| Revenues | &nbsp;&nbsp;&nbsp;&nbsp; 232717405 | 288258376 | 228996069 |
| Operating income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 62144800 | 78174467 | 56675048 |
| Income before income tax | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 75203609 | 92546064 | 55050476 |
| Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 54914724 | 64732833 | 39416922 |

---

**2. Company Overview**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Registered Purpose of the Company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Software consulting, development and supply

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Development and sales of software and CD

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Information-technology-related software development

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)Production, development, distribution, sales and consulting of digital contents, including game software, as well as corresponding licensing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)Online network game services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)Applied package-related software development

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)Production and sales of computer programs

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)Import and export of software

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9)E-commerce

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) Character development business

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) Animation business

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) Real estate leasing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) Service-area restaurant business

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) Media-related business

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) Printing and publication

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) Record & video production and distribution

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) Any other businesses incidental to the above businesses

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Description of Primary Business

------

Gravity Co., Ltd. (the "Company") is the developer of *Ragnarok Online*, an MMORPG, which was launched in August 2002 and is commercially offered in 91 markets worldwide, including Korea, Japan, Taiwan, Thailand, Southeast Asia, the United States and Europe as of December 31, 2022.

Having strong global network and success from *Ragnarok Online*, the Company is expanding its business areas from online game development and publishing to cultural contents business based on various platforms, such as development of games for smartphones, console and IPTV, and animation and game character merchandising.

In addition, the Company has 8 subsidiaries, such as Gravity NeoCyon, Inc. in Korea, Gravity Interactive, Inc. in the United States, Gravity Communications Co., Ltd in Taiwan. Gravity Game Tech Co., Ltd. in Bangkok, Thailand, PT Gravity Game Link in Jakarta, Indonesia, Gravity Game Arise Co., Ltd. in Tokyo, Japan, GRAVITY GAME HUB PTE., Ltd in Singapore and GRAVITY GAME VISION LIMITED in Hong Kong.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Problems Confronting the Company

Since the Company operates in a highly competitive industry, the Company is making every effort to enhance its development capacity and to maintain and increase its market share in overseas markets to preserve its competitive advantage.

The Company is in need of diversified revenue structure, continuous global market expansion and new business initiatives for sustainable revenue growth. The Company is doing its best diversely to expand new markets, to publish mobile games, to develop mobile games and to do IP licensing business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)Business Offices and Game Development Facilities

---

| | |
|:---|:---|
| Classification | Location |
| Head Office | &nbsp;&nbsp;&nbsp;(Nuritkum Square R&D Tower) 15F, 396 World Cup buk-ro, Mapo-gu, Seoul 121-795, Korea |
| Game Development Facilities | &nbsp;&nbsp;&nbsp;(Nuritkum Square R&D Tower) 15F, 396 World Cup buk-ro, Mapo-gu, Seoul 121-795, Korea |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)Stock

1) Total number of shares

(As of December 31, 2022)

---

| | | |
|:---|:---|:---|
| Total number of shares authorized | Total number of shares issued | Total number of shares unissued |
| 40,000,000 shares | 6,948,900 shares | 33,051,100 shares |

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2) Type of Stock issued (Par value per share: KRW 500)

(As of December 31, 2022)

---

| | | | |
|:---|:---|:---|:---|
| Type | Number of shares | Total par value | % |
| Registered common stock | 6,948,900 shares | KRW 3,474,450,000 | 100% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)Debenture: None.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)Major Shareholders

(As of December 31, 2022)

---

| | | | |
|:---|:---|:---|:---|
| Shareholder | Shares Owned | % | Transaction with the Company |
| GungHo Online Entertainment, Inc. | 4121737 | 59.31 | <sup>-</sup> |
| Others | 2827163 | 40.69 | - |
| Total | 6948900 | 100.00 | - |

---

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)Investment in Other Companies

&nbsp;&nbsp;&nbsp;&nbsp;(As of December 31, 2022)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Companies | Companies | Companies | Companies | Relationship with the Company | Relationship with the Company | Relationship with the Company |
| Name | Location | Share capital | Main business | Shares owned | % | Relationship |
| Gravity Interactive, Inc. | California, USA | USD <br>10,540,000 | Online and Mobile Game Service | 290000 | 100.00% | Subsidiary |
| Gravity NeoCyon, Inc. | Seoul, <br>Korea | KRW <br>3,990,990,000 | Mobile game development | 794440 | 99.53% | Subsidiary |
| Gravity Communications Co., Ltd. | Taipei, Taiwan | NTD <br>155,100,000&nbsp;&nbsp;&nbsp;&nbsp; | Online and Mobile Game Service | 15510000 | 100.00% | Subsidiary |
| PT Gravity Game Link | Jakarta, Indonesia | IDR <br>43,221,000,000 | Online and Mobile Game Service | 3025470 | 70.00% | Subsidiary |
| Gravity Game Tech Co., Ltd. | Bangkok, Thailand | THB <br>88,049,940 | Online and Mobile Game Service | 8804994 | 100.00% | Subsidiary |
| Gravity Game Arise Co., Ltd. | Tokyo, <br>Japan | JPY <br>100,000,000 | Online and Mobile Game Service | 25000 | 100.00% | Subsidiary |
| Gravity Game Hub PTE., Ltd. | Singapore | SGD <br>6,819,991 | Online and Mobile Game Service | 682000 | 100.00% | Subsidiary |
| Gravity Game Vision., Ltd.(\*1) | Hong Kong | HKD<br>3,900,001 | Online and Mobile Game Service | 39001 | 100.00% | Subsidiary |

---

(\*1) Gravity Game Vision., Ltd. was founded during 2022 and has been included as a subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9)Directors Holding Concurrent Positions

------

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| | | | |
|:---|:---|:---|:---|
| Name | Company | Company | Company |
| Name | Name | Position | Responsibility |
| Hyun Chul Park | Gravity Co., Ltd. | CEO | Overall management |
| Hyun Chul Park | Gravity NeoCyon, Inc. | Executive Director | Chief Operating Officer |
| Hyun Chul Park | Gravity Communications Co., Ltd. | Executive Director | - |
| Hyun Chul Park | Gravity Interactive, Inc. | President | - |
| Yoshinori Kitamura | Gravity Co., Ltd. | Executive Director | Chief Operating Officer<br>Chief Compliance Officer |
| Yoshinori Kitamura | Gravity Interactive, Inc. | CEO | Overall management |
| Yoshinori Kitamura | Gravity NeoCyon, Inc. | CEO | Overall management |
| Yoshinori Kitamura | Gravity Communications Co., Ltd. | CEO | Overall management |
| Yoshinori Kitamura | PT Gravity Game Link | CEO | Overall management |
| Yoshinori Kitamura | Gravity Game Tech Co., Ltd. | CEO | Overall management |
| Yoshinori Kitamura | Gravity Game Arise Co., Ltd. | CEO | Overall management |
| Yoshinori Kitamura | Gravity Game Hub PTE., Ltd. | CEO | Overall management |
| Yoshinori Kitamura | Gravity Game Vision., Ltd. | CEO | Overall management |
| Heung Gon Kim | Gravity Co., Ltd. | Executive Director | Chief Financial Officer |
| Heung Gon Kim | Gravity NeoCyon, Inc. | Executive Director | Chief Financial Officer |
| Heung Gon Kim | Gravity Interactive, Inc. | Vice President | - |
| Heung Gon Kim | Gravity Communications Co., Ltd. | Executive Director | Chief Financial Officer |
| Heung Gon Kim | PT Gravity Game Link | Executive Director | - |
| Heung Gon Kim | Gravity Game Tech Co., Ltd. | Executive Director | - |
| Heung Gon Kim | Gravity Game Arise Co., Ltd. | Executive Director | - |
| Heung Gon Kim | Gravity Game Hub PTE., Ltd. | Executive Director | Chief Financial Officer |
| Heung Gon Kim | Gravity Game Vision., Ltd. | Executive Director | Chief Financial Officer |

---

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10)Material Transactions with Related Parties

① Sales and purchases

(In thousands of Korean Won)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Nature | Related Companies | 2022 | 2022 | 2021 | 2021 |
| Nature | Related Companies | Sales | Purchases | Sales | Purchase |
| Parent company | GungHo Online Entertainment, Inc. | 24812723 | 20319 | 35489010 | 57144 |
| Parent company | GungHo Online Entertainment America | - | 42479 | - | - |
| Subsidiaries | Gravity Interactive, Inc. | 13180944 | 1462367 | 14838616 | 643324 |
| Subsidiaries | Gravity NeoCyon, Inc. | 507777 | 7064199 | 327329 | 6734567 |
| Subsidiaries | Gravity Communications Co., Ltd. | 19256844 | 6326904 | 18682591 | 5676890 |
| Subsidiaries | PT Gravity Game Link | 360061 | 484278 | 298864 | 157600 |
| Subsidiaries | Gravity Game Tech Co., Ltd. | 7583917 | 56087 | 6769774 | 29534 |
| Subsidiaries | Gravity Game Arise Co., Ltd. | 27928 | 3401736 | - | 3246517 |
| Subsidiaries | Gravity Game Hub | 892325 | - | - | - |
| Subsidiaries | Gravity Game Vision Limited. | 13257431 | - | - | - |
| Total | Total | 79879950 | 18858369 | 76406184 | 16545576 |

---

② Receivables and Payables

(In thousands of Korean Won)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Nature | Related Companies | 2022 | 2022 | 2021 | 2021 |
| Nature | Related Companies | Receivables | Payables | Receivables | Payables |
| Parent company | GungHo Online Entertainment, Inc. | 2707640 | 2804 | 5051013 | 7448 |
| Parent company | GungHo Online Entertainment America | - | 29692 | - | - |
| Subsidiaries | Gravity Interactive, Inc. | 3591765 | 540346 | 3538932 | 405359 |
| Subsidiaries | Gravity Game Hub PTE., Ltd. | 707855 | - | 96628 | - |
| Subsidiaries | Gravity NeoCyon, Inc. | 460846 | 904356 | 822009 | 1550411 |
| Subsidiaries | Gravity Communications Co., Ltd. | 1581356 | 1696212 | 1179228 | 1283908 |
| Subsidiaries | PT Gravity Game Link | 412174 | 270362 | 35824 | 9411 |
| Subsidiaries | Gravity Game Tech Co., Ltd. | 1848604 | 158370 | 1439384 | 181043 |
| Subsidiaries | Gravity Game Arise Co., Ltd. | 135588 | 775877 | 310412 | 1106765 |
| Subsidiaries | Gravity Game Vison Limited. | 7359665 | - | - | - |
| Total | Total | 18805493 | 4378019 | 12473430 | 4544345 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11)Significant Creditors: The Company had no significant creditors as of December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12)Employees

(As of December 31, 2022)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Category | Directors & Officers | Developers | Marketing/Operating | Finance/Administration | Total |
| Employees | 11 | 218 | 77 | 46 | 352 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13)Directors and Auditors

(As of December 31, 2022)

---

| | | | |
|:---|:---|:---|:---|
| Name | Position | Main work | Transaction with the Company |
| Hyun Chul Park | CEO | Chief Executive Officer | - |
| Yoshinori Kitamura | Executive Director | Chief Operating Officer<br>Chief Compliance Officer | - |
| Heung Gon Kim | Executive Director | Chief Financial Officer | - |
| Kazuki Morishita | Executive Director | - | - |
| Kazuya Sakai | Executive Director | - | - |
| Jung Yoo | Independent Director | Member of audit committee | - |
| Yong Seon Kwon | Independent Director | Member of audit committee | - |
| Kee Woong Park | Independent Director | Member of audit committee | - |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14)Material Events after the end of fiscal year 2022: None

------

**3. Consolidated Financial Statements as of and for the fiscal year ended December 31, 2022 and December 31, 2021**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Consolidated Statements of Financial Position

GRAVITY CO., LTD. (In thousands of Korean Won)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | December 31, 2022 | December 31, 2022 | December 31, 2021 | December 31, 2021 |
| Assets |  |  |  |  |
| &nbsp;&nbsp;Current Assets |  | 421767238 |  | 306134920 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | 169877341 |  | 99104943 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term financial instruments | 167000000 |  | 148000000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 77256816 |  | 52614595 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other receivable, net | 139785 |  | 1080516 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 3332317 |  | 3164075 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current financial assets | 3370146 |  | 598099 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 790833 |  | 1572692 |  |
| &nbsp;&nbsp;Non-current Assets |  | 22326742 |  | 21391403 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 8140129 |  | 11337999 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible assets, net | 3869478 |  | 3342028 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-current financial assets | 2175769 |  | 3018823 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-current assets | 2481845 |  | 1973064 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax assets | 5659521 |  | 1719489 |  |
| Total assets |  | 444093980 |  | 327526323 |
| Liabilities |  |  |  |  |
| &nbsp;&nbsp;Current liabilities |  | 105709908 |  | 73997475 |
| &nbsp;&nbsp;&nbsp;&nbsp;Account payables | 73549144 |  | 41199401 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 18543037 |  | 13480518 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Withholdings | 3201011 |  | 3596403 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses  | 2040357 |  | 1484019 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax payable | 5469061 |  | 10628981 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 2907298 |  | 3608153 |  |
| &nbsp;&nbsp;Non-current liabilities |  | 8204251 |  | 6687990 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term account payables | 373989 |  | 729173 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term deferred revenue | 30239 |  | 98226 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-current liabilities | 4968325 |  | 5860591 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities | 2831698 |  |  |  |
| Total liabilities |  | 113914159 |  | 80685465 |
| Equity attributable to owners of the Parent Company |  | 329527917 |  | 246070907 |
| &nbsp;&nbsp;Share capital |  | 3474450 |  | 3474450 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common shares | 3474450 |  | 3474450 |  |
| &nbsp;&nbsp;Capital surplus |  | 27098264 |  | 27098264 |
| &nbsp;&nbsp;Other components of equity |  | 2475675 |  | 2180388 |
| &nbsp;&nbsp;Retained earnings |  | 296479528 |  | 213317805 |
| Non-controlling interest |  | 651904 |  | 769951 |
| Total equity |  | 330179821 |  | 246840858 |
| Total liabilities and equity |  | 444093980 |  | 327526323 |

---

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Consolidated Statements of Comprehensive Income

GRAVITY CO., LTD. (In thousands of Korean Won)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | 2022 | 2022 | 2021 | 2021 |
| Revenues |  | 463617872 |  | 413937974 |
| &nbsp;&nbsp;Online games | 89256406 |  | 75370395 |  |
| &nbsp;&nbsp;Mobile games | 358771544 |  | 320163555 |  |
| &nbsp;&nbsp;Other revenue | 15589922 |  | 18404024 |  |
| Cost of revenues |  | 267365143 |  | 224172902 |
| Gross profit |  | 196252729 |  | 189765072 |
| &nbsp;&nbsp;Selling, general and administrative expenses |  | 91410933 |  | 92201177 |
| Operating Profit |  | 104841796 |  | 97563895 |
| Non-operating income and expenses |  | 5039981 |  | 1736637 |
| Financial income | 15953466 |  | 5268535 |  |
| Financial costs | (10779361) |  | (2686170) |  |
| Other non-operating income | 605316 |  | 606731 |  |
| Other non-operating expenses | (739440) |  | (1452459) |  |
| Profit before income tax expense |  | 109881777 |  | 99300532 |
| Income tax expense |  | 26824189 |  | 33420741 |
| Profit for the year |  | 83057588 |  | 65879791 |
| Owners of the Parent Company | 83161723 |  | 65946650 |  |
| Non-controlling interests | (104135) |  | (66859) |  |
| Other comprehensive income |  | 281375 |  | 3271136 |
| &nbsp;&nbsp;Items that may be subsequently reclassified to profit or loss | 285034 |  | 3273897 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustments | 297848 |  | 3226854 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interest of foreign currency translation adjustments | (12814) |  | 47043 |  |
| &nbsp;&nbsp;Items that will never be reclassified to profit or loss | (3659) |  | (2761) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Remeasurement of defined benefit liabilities | (2561) |  | (1933) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interest of remeasurement of defined benefit liabilities | (1098) |  | (828) |  |
| Total comprehensive income for the year |  | 83338963 |  | 69150927 |
| &nbsp;&nbsp;Owners of the Parent Company | 83457010 |  | 69171571 |  |
| &nbsp;&nbsp;Non-controlling interests | (118047) |  | (20644) |  |
| Earnings per share attributable to the equity holders of the Parent Company |  |  |  |  |
| Basic earnings per share |  | 11968 |  | 9490 |
| Diluted earnings per share |  | 11968 |  | 9490 |

---

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Consolidated Statements of Changes in Equity

GRAVITY CO., LTD. (In thousands of Korean Won)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Share capital | Capital surplus | Other components of equity | Retained Earnings | Total | Non-controlling<br>interest | Total<br>Equity |
| Balance at January 1, 2021 | 3474450 | 27109803 | (1044533) | 147371155 | 176910875 | 437141 | 177348016 |
| &nbsp;&nbsp;Profit for the year | - | - | - | 65946650 | 65946650 | (66859) | 65879791 |
| Equity transaction | - | (11539) | - | - | (11539) | 353454 | 341915 |
| &nbsp;&nbsp;Remeasurements of defined benefit liabilities | - | - | (1933) | - | (1933) | (828) | (2761) |
| Foreign currency translation adjustments | - | - | 3226854 | - | 3226854 | 47043 | 3273897 |
| Balance at December 31, 2021 | 3474450 | 27098264 | 2180388 | 213317805 | 246070907 | 769951 | 246840858 |
| Balance at January 1, 2022 | 3474450 | 27098264 | 2180388 | 213317805 | 246070907 | 769951 | 246840858 |
| &nbsp;&nbsp;Profit for the year | - | - | - | 83161723 | 83161723 | (104135) | 83057588 |
| Remeasurements of defined benefit liabilities | - | - | (2561) | - | (2561) | (1098) | (3659) |
| &nbsp;&nbsp;Foreign currency translation adjustments | - | - | 297848 | - | 297848 | (12814) | 285034 |
| &nbsp;&nbsp;Balance at December 31, 2022 | 3474450 | 27098264 | 2475675 | 296479528 | 329527917 | 651904 | 330179821 |

---

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Consolidated Statements of Cash Flows

GRAVITY CO., LTD. (In thousands of Korean Won)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | 2022 | 2022 | 2021 | 2021 |
| **Cash flows from operating activities** |  | 98278652 |  | 74182958 |
| &nbsp;&nbsp;Profit for the year | 83057588 |  | 65879791 |  |
| &nbsp;&nbsp;Adjustments | 31362848 |  | 40575779 |  |
| &nbsp;&nbsp;Changes in operating assets and liabilities | 10254125 |  | (2883876) |  |
| Interest received | 3032676 |  | 995149 |  |
| Interest paid | (121724) |  | (111416) |  |
| Income tax paid | (29306861) |  | (30272469) |  |
| **Cash Flows from investing activities** |  | (22340445) |  | (82471756) |
| &nbsp;&nbsp;Decrease in other current assets | 5099 |  | - |  |
| &nbsp;&nbsp;Proceeds from disposal of property and equipment | 14609 |  | 13850 |  |
| &nbsp;&nbsp;Proceeds from disposal of other intangible assets | - |  | 14861 |  |
| &nbsp;&nbsp;Decrease in other non-current financial assets | - |  | 594774 |  |
| &nbsp;&nbsp;Increase in short-term financial instruments | (19000000) |  | (77000000) |  |
| &nbsp;&nbsp;Purchase of property and equipment | (739413) |  | (1747427) |  |
| &nbsp;&nbsp;Purchase of intangible assets | (2055632) |  | (2463914) |  |
| &nbsp;&nbsp;Increase in other current assets | (200) |  | - |  |
| &nbsp;&nbsp;Increase in other non-current financial assets | (564908) |  | (1883900) |  |
| **Cash Flows from Financing Activities** |  | (3917977) |  | (3306019) |
| &nbsp;&nbsp;&nbsp;Proceeds from capital contribution from non-controlling interests | - |  | 353454 |  |
| &nbsp;&nbsp;&nbsp;Repayment of lease liabilities | (3917977) |  | (3647934) |  |
| &nbsp;&nbsp;&nbsp;Payment of share issuance | - |  | (11539) |  |
| &nbsp;&nbsp;&nbsp;Effects of exchange rate changes on cash and cash equivalents |  | (1247832) |  | 67278 |
| &nbsp;&nbsp;&nbsp;Net increase (decrease) in cash and cash equivalents |  | 70772398 |  | (11527539) |
| &nbsp;&nbsp;Cash and cash equivalents at beginning of the year |  | 99104943 |  | 110632482 |
| &nbsp;&nbsp;Cash and cash equivalents at end of the year |  | 169877341 |  | 99104943 |

---

------

**4. Separate Financial Statements as of and for the fiscal year ended December 31, 2022 and December 31, 2021.**

&nbsp;&nbsp;&nbsp;&nbsp;(1)Statements of Financial Position

GRAVITY CO., LTD. (In thousands of Korean Won)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | December 31, 2022 | December 31, 2022 | December 31, 2021 | December 31, 2021 |
| Assets |  |  |  |  |
| Current Assets |  | 250876266 |  | 219505575 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | 42985625 |  | 26602122 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term financial instruments | 167000000 |  | 148000000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 35117290 |  | 40569841 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other receivable, net | 961918 |  | 1677451 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 1556323 |  | 1823623 |  |
| Other current financial assets | 3249537 |  | 790051 |  |
| Other current assets | 5573 |  | 42487 |  |
| Non-current Assets |  | 41433074 |  | 39159998 |
| Investments in subsidiaries | 26732334 |  | 21679845 |  |
| Property and equipment, net | 3520385 |  | 5608320 |  |
| Intangible assets, net | 3867939 |  | 3228635 |  |
| Deferred tax assets | 3689765 |  | 4045964 |  |
| Other non-current financial assets | 2048028 |  | 2895565 |  |
| Other non-current assets | 1574623 |  | 1701669 |  |
| Total assets |  | 292309340 |  | 258665573 |
| Liabilities |  |  |  |  |
| Current liabilities |  | 28335116 |  | 48803832 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payables | 17641888 |  | 29467721 |  |
| Deferred income | 4258298 |  | 4139025 |  |
| Withholdings | 1540197 |  | 2754347 |  |
| Accrued expenses | 881213 |  | 785358 |  |
| Income tax payable | 2406367 |  | 9403175 |  |
| Other current liabilities | 1607153 |  | 2254206 |  |
| Non-current liabilities |  | 3382407 |  | 4184648 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term account payables | 373989 |  | 729173 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term deferred revenue | 30239 |  | 199062 |  |
| Other non-current liabilities | 2978179 |  | 3256413 |  |
| Total liabilities |  | 31717523 |  | 52988480 |
| Equity |  |  |  |  |
| Share Capital |  | 3474450 |  | 3474450 |
| Common shares | 3474450 |  | 3474450 |  |
| Capital surplus |  | 27482683 |  | 27482683 |
| Other components of equity |  |  |  |  |
| Retained earnings |  | 229634684 |  | 174719960 |
| Total equity |  | 260591817 |  | 205677093 |
| Total liabilities and equity |  | 292309340 |  | 258665573 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Statements of Comprehensive Income

GRAVITY CO., LTD. (In thousands of Korean Won)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | 2022 | 2022 | 2021 | 2021 |
| Revenues |  | 232717405 |  | 288258376 |
| &nbsp;&nbsp;Online games | 32969528 |  | 30176025 |  |
| &nbsp;&nbsp;Mobile games | 198512493 |  | 256918510 |  |
| &nbsp;&nbsp;Other revenue | 1235384 |  | 1163841 |  |
| Cost of revenues |  | 112512407 |  | 141815263 |
| Gross profit |  | 120204998 |  | 146443113 |
| &nbsp;&nbsp;Selling, general and administrative expenses |  | 58060198 |  | 68268646 |
| Operating Profit |  | 62144800 |  | 78174467 |
| Non-operating income and expenses |  | 13058809 |  | 14371597 |
| Financial income | 13734710 |  | 4921817 |  |
| Financial costs | (9975732) |  | (1989233) |  |
| Other non-operating income | 9578611 |  | 11997743 |  |
| Other non-operating expenses | (278780) |  | (558730) |  |
| &nbsp;&nbsp;Profit before income tax |  | 75203609 |  | 92546064 |
| Income tax expense |  | 20288885 |  | 27813231 |
| Profit for the year |  | 54914724 |  | 64732833 |
| Other comprehensive income |  | - |  | - |
| &nbsp;&nbsp;Total comprehensive income for the year |  | 54914724 |  | 64732833 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Statements of Appropriation of Retained earnings

GRAVITY CO., LTD. (In thousands of Korean Won)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | 2022 | 2022 | 2021 | 2021 |
| | Confirmed disposition date: <br>March 31, 2023 | Confirmed disposition date: <br>March 31, 2023 | Confirmed disposition date: <br>March 31, 2022 | Confirmed disposition date: <br>March 31, 2022 |
| Retained earnings before appropriation |  | 229634684 |  | 174719960 |
| &nbsp;&nbsp;Unappropriated retained earnings carried over from prior year | 174719960 |  | 109987127 |  |
| &nbsp;&nbsp;Profit for the year | 54914724 |  | 64732833 |  |
| Appropriation of retained earnings |  | - |  | - |
| Unappropriated retained earnings to be carried forward |  | 229634684 |  | 174719960 |

---

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Statements of Changes in Equity

GRAVITY CO., LTD. (In thousands of Korean Won)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Share capital | Capital Surplus | Other components of equity | Retained Earnings | Total |
| Balance at January 1, 2021 | 3474450 | 27482683 | 929 | 109987127 | 140945189 |
| Profit for the year | - | - | - | 64732833 | 64732833 |
| Foreign currency translation adjustments | - | - | (929) | - | (929) |
| Balance at December 31, 2021 | 3474450 | 27482683 | - | 174719960 | 205677093 |
| Balance at January 1, 2022 | 3474450 | 27482683 | - | 174719960 | 205677093 |
| Profit for the year | - | - | - | 54914724 | 54914724 |
| Balance at December 31, 2022 | 3474450 | 27482683 | - | 229634684 | 260591817 |

---

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)Statements of Cash Flows

GRAVITY CO., LTD. (In thousands of Korean Won)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | 2022 | 2022 | 2021 | 2021 |
| **Cash flows from operating activities** |  | 45514786 |  | 70320586 |
| Profit for the year | 54914724 |  | 64732833 |  |
| Adjustments | 12550795 |  | 18716916 |  |
| Changes in operating assets and liabilities | (7886555) |  | (2637125) |  |
| Interest received | 2964848 |  | 966070 |  |
| Interest paid | (61533) |  | (68886) |  |
| Dividend received | 8839924 |  | 11326984 |  |
| &nbsp;&nbsp;Income tax paid | (25807417) |  | (22716206) |  |
| **Cash flows from investing activities** |  | (26443349) |  | (88153976) |
| Decrease in other current financial assets | 901 |  | - |  |
| &nbsp;&nbsp;Decrease in other non-current financial assets | - |  | 500000 |  |
| Decrease in other non-current financial liabilities | - |  | 89860 |  |
| Disposal of property and equipment | 1368 |  | 235 |  |
| Acquisition of investments in subsidiaries | (5052489) |  | (6721204) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase in short-term financial instruments | (19000000) |  | (77000000) |  |
| &nbsp;&nbsp;Increase in other current financial assets | (200) |  | - |  |
| &nbsp;&nbsp;Increase in other non-current financial assets | (500000) |  | (1660952) |  |
| **Purchase of property and equipment** | (291433) |  | (1210372) |  |
| &nbsp;&nbsp;Purchase of intangible assets | (1601496) |  | (2151543) |  |
| Cash flows from financing activities |  | (2049532) |  | (1787171) |
| Repayment of lease liabilities | (2049532) |  | (1787171) |  |
| Effects of exchange rate changes on cash and cash equivalents |  | (638402) |  | (19354123) |
| Net increase (decrease) in cash and cash equivalents |  | 16383503 |  |  |
| Cash and cash equivalents at the beginning of the year |  | 26602122 |  | 45956245 |
| Cash and cash equivalents at the end of the year |  | 42985625 |  | 26602122 |

---

<br>