# EDGAR Filing Document

**Accession Number:** 0001313310
**File Stem:** 0001628280-26-024574
**Filing Date:** 2026-4
**Character Count:** 287163
**Document Hash:** 6ff2b4f8a454b3e49a0a593317fe1803
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-26-024574.hdr.sgml**: 20260410

**ACCESSION NUMBER**: 0001628280-26-024574

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 3

**CONFORMED PERIOD OF REPORT**: 20260410

**FILED AS OF DATE**: 20260410

**DATE AS OF CHANGE**: 20260410

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** GRAVITY Co., Ltd.
- **CENTRAL INDEX KEY:** 0001313310
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROCESSING & DATA PREPARATION [7374]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 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:** 26853037

**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

**UNITED STATES<br>SECURITIES AND EXCHANGE COMMISSION<br>Washington, D.C. 20549** 

**Form 6-K**

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

For the month of April 2026

Commission File Number 000-51138

**GRAVITY Co., Ltd.**<br>———————————————————————————————————————

(Translation of registrant's name into English)

15F, 396 World Cup buk-ro, Mapo-gu, Seoul 03925, Korea

——————————————————————————————————————— <br>(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&nbsp;&nbsp;&nbsp;&nbsp;[ ] 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): [ ]

------

Samil PricewaterhouseCoopers, our independent auditor for the fiscal year ended December 31, 2025 and December 31, 2024 for our consolidated financial statements in conformity with International Financial Reporting Standards as adopted by the Republic of Korea, or Korean IFRS, have conducted audits and expressed opinions with regards to the consolidated statements of financial position of Gravity Co., Ltd. (the "Company") and its subsidiaries as of December 31, 2025 and December 31, 2024 and the related consolidated statements of comprehensive income, changes in equity, and cash flows for the year ended at December 31, 2025 and December 31, 2024, expressed in Korean Won.

Samil PricewaterhouseCoopers, our independent auditor for the fiscal year ended December 31, 2025 and December 31, 2024 has also conducted audits and expressed opinions with regards to the separate statements of financial position of the Company as of December 31, 2025 and December 31, 2024 and the related separate statements of comprehensive income, changes in equity, and cash flows for the year then ended at December 31, 2025 and December 31, 2024 expressed in Korean Won.

The audited consolidated financial statements and the audited separate financial statements are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are incorporated herein by reference.

------

**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: April 10, 2026

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**Exhibit Index**

---

| | |
|:---|:---|
| **<u>Exhibit No.</u>** | **<u>Description</u>** |
| 99. 1 | <u>[The Company's Korean IFRS Consolidated financial statements as of and for the years ended December 31, 2025 and December 31, 2024 and the independent auditor's report](gravity_2025yeauditreportc.htm)</u> |
| 99. 2 | <u>[The Company's Korean IFRS Separate financial statements as of and for the years ended December 31, 2025 and December 31, 2024 and the independent auditor's report](gravity_2025yeauditreports.htm)</u> |

---

## Exhibit 99.1

**GRAVITY CO., LTD. and Subsidiaries**

Consolidated Financial Statements

**For the Years Ended December 31, 2025 and 2024**

(With Independent Auditor's Report Thereon)

**&nbsp;&nbsp;&nbsp;&nbsp;**

------

Contents

**Page**

**Independent Auditor's Report**&nbsp;&nbsp;&nbsp;&nbsp;1

Consolidated Financial Statements

Consolidated Statements of Financial Position&nbsp;&nbsp;&nbsp;&nbsp;3

Consolidated Statements of Comprehensive Income&nbsp;&nbsp;&nbsp;&nbsp;5

Consolidated Statements of Changes in Equity&nbsp;&nbsp;&nbsp;&nbsp;6

Consolidated Statements of Cash Flows&nbsp;&nbsp;&nbsp;&nbsp;7

Notes to the Consolidated Financial Statements&nbsp;&nbsp;&nbsp;&nbsp;8

------

Independent Auditor's Report

<u>English Translation of a Report Originally Issued in Korean</u>

To the Board of Directors and Shareholders of Gravity Co., Ltd.:

**Opinion**

We have audited the consolidated financial statements of Gravity Co., Ltd. and its subsidiaries (collectively referred to as the "Group"), which comprise the consolidated statements of financial position as at December 31, 2025 and 2024, and the consolidated statements of comprehensive income, consolidated statements of changes in equity and consolidated statements of cash flows for the years then ended, and notes to the consolidated financial statements, including material accounting policy information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS).

**Basis for Opinion**

We conducted our audit in accordance with Korean Standards on Auditing. Our responsibilities under those standards are further described in the *Auditor's Responsibilities for the Audit of the Consolidated Financial Statements* section of our report. We are independent of the Group in accordance with the ethical requirements of the Republic of Korea that are relevant to our audit of the consolidated financial statements and we have fulfilled our other ethical responsibilities in accordance with the ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

**Other Matter**

Auditing standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to audit such consolidated financial statements may differ from those generally accepted and applied in other countries.

**Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements**

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Korean IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations.

Those charged with governance are responsible for overseeing the Group's financial reporting process.

**Auditor's Responsibilities for the Audit of the Consolidated Financial Statements**

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Korean Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

------

As part of an audit in accordance with Korean Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

∙Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.

∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

∙Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.

∙Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

∙Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Samil PricewaterhouseCoopers

Seoul, Korea

March 19, 2026

This report is effective as of March 19, 2026, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying consolidated financial statements and notes thereto. Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.<br>

<u><br></u>

------

GRAVITY CO., LTD. and Subsidiaries

Consolidated Statements of Financial Position

As of December 31, 2025 and 2024

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In thousands of won)* | **Notes** |  | **December 31, 2025** | **December 31, 2024** |
| **Assets** |  |  |  |  |
| **Current assets** |  |  |  |  |
| Cash and cash equivalents | 5623 | W | 203599414 | 228898026 |
| Short-term financial instruments | 623 |  | 415033514 | 324304040 |
| Accounts receivable, net | 671423 |  | 56318021 | 81152458 |
| Other receivables, net | 6723 |  | 2904339 | 1572182 |
| Prepaid expenses | 14 |  | 13765956 | 8115292 |
| Other current financial assets | 623 |  | 4332769 | 6601519 |
| Other current assets |  |  | 2558461 | 2966272 |
|  |  |  | 698512474 | 653609789 |
| **Non-current assets** |  |  |  |  |
| Property and equipment, net | 822 |  | 10770421 | 9957086 |
| Intangible assets, net | 9 |  | 7156933 | 7056548 |
| Other non-current financial assets | 623 |  | 3811881 | 1766588 |
| Other non-current assets | 10 |  | 15201009 | 8451443 |
| Deferred tax assets | 19 |  | 7209145 | 5617488 |
|  |  |  | 44149389 | 32849153 |
| **Total assets** |  | W | 742661863 | 686458942 |

---

*See accompanying notes to the consolidated financial statements.*

------

GRAVITY CO., LTD. and Subsidiaries

Consolidated Statements of Financial Position, Continued

As of December 31, 2025 and 2024

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In thousands of won)* | **Notes** |  | **December 31, 2025** | **December 31, 2024** |
| **Liabilities** |  |  |  |  |
| &nbsp;&nbsp;**Current liabilities** |  |  |  |  |
| Accounts payable  | 623 | W | 61926877 | 67929911 |
| Deferred revenue  | 14 |  | 21500469 | 26760732 |
| Withholdings |  |  | 1654977 | 1587759 |
| Accrued expenses | 623 |  | 2596933 | 2651426 |
| Income tax payable | 19 |  | 4633281 | 6507227 |
| Other current liabilities | 62223 |  | 3717779 | 3211752 |
|  |  |  | 96030316 | 108648807 |
| &nbsp;&nbsp;**Non-current liabilities** |  |  |  |  |
| Long-term accounts payable | 623 |  | 622745 | 220108 |
| Long-term deferred revenue | 14 |  | 409752 | 2571862 |
| Other non-current liabilities | 62223 |  | 6495937 | 5361025 |
| Deferred tax liabilities | 19 |  | 1736352 | 1293681 |
|  |  |  | 9264786 | 9446676 |
| **Total liabilities** |  | W | 105295102 | 118095483 |
| **Equity** |  |  |  |  |
| **Equity attributable to owners of the Parent Company** |  |  |  |  |
| Share capital | 113 |  | 3474450 | 3474450 |
| Capital surplus | 13 |  | 26979361 | 26979361 |
| Other components of equity | 13 |  | 25523046 | 23800551 |
| Retained earnings  | 13 |  | 580881573 | 513417859 |
| **Non-controlling interest** |  |  | 508331 | 691238 |
| **Total equity** |  |  | 637366761 | 568363459 |
| **Total liabilities and equity** |  | W | 742661863 | 686458942 |

---

*See accompanying notes to the consolidated financial statements.*

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GRAVITY CO., LTD. and Subsidiaries

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2025 and 2024

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In thousands of won, except per share amounts)* | **Notes** |  | **2025** | **2024** |
| **Revenues** | 142425 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Online games |  | W  | 90338734 | 76989131 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mobile games |  |  | 455234899 | 405675976 |
| &nbsp;&nbsp; Other revenue |  |  | 14973812 | 18180013 |
|  |  |  | 560547445 | 500845120 |
| **Cost of revenues** | 15 |  | 364267566 | 306903066 |
| **Gross profit** |  |  | 196279879 | 193942054 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | 1516 |  | 117250377 | 107753364 |
| **Operating profit** | 24 |  | 79029502 | 86188690 |
| **Non-operating income and expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Finance income  | 617 |  | 24598991 | 30888989 |
| &nbsp;&nbsp;&nbsp;Finance costs | 617 |  | (11056235) | (9925670) |
| &nbsp;&nbsp;&nbsp;Other non-operating income | 18 |  | 312765 | 788898 |
| &nbsp;&nbsp;&nbsp;Other non-operating expenses | 18 |  | (1946360) | (1593873) |
| **Profit before income tax expense** |  |  | 90938663 | 106347034 |
| **Income tax expense** | 19 |  | 23629334 | 21444826 |
| **Profit for the year** |  | W | 67309329 | 84902208 |
| **Profit (loss) attributable to:** |  |  |  |  |
| Owners of the Parent Company |  | W | 67463714 | 84919277 |
| Non-controlling interests |  |  | (154385) | (17069) |
| **Other comprehensive income** |  |  |  |  |
| Items that are or may be reclassified subsequently to profit or loss | Items that are or may be reclassified subsequently to profit or loss |  | 1670895 | 19825684 |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustments |  |  | 1705016 | 19768017 |
| &nbsp;&nbsp;&nbsp;Non-controlling interest in foreign currency translation adjustment |  |  | (34121) | 57667 |
| Items that will not be reclassified to profit or loss |  |  | 23076 | 23954 |
| &nbsp;&nbsp;&nbsp;Remeasurement of defined benefit liabilities |  |  | 17478 | 15999 |
| &nbsp;&nbsp;&nbsp;Non-controlling interest in remeasurement of defined benefit liabilities |  |  | 5598 | 7955 |
| **Total comprehensive income for the year** |  | W  | 69003300 | 104751846 |
| **Total comprehensive income (loss) attributable to:** | **Total comprehensive income (loss) attributable to:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Owners of the Parent Company |  | W | 69186208 | 104703293 |
| &nbsp;&nbsp;&nbsp;Non-controlling interests |  |  | (182908) | 48553 |
| **Earnings per share attributable to the equity holders of the Parent Company** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic earnings per share (in won) | 20 | W | 9709 | 12221 |
| &nbsp;&nbsp;&nbsp;Diluted earnings per share (in won) | 20 | W | 9709 | 12221 |

---

*See accompanying notes to the consolidated financial statements.*

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GRAVITY CO., LTD. and Subsidiaries

Consolidated Statements of Changes in Equity

For the years ended December 31, 2025 and 2024

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  |  | **Equity attributable to owners of the Parent Company** | **Equity attributable to owners of the Parent Company** | **Equity attributable to owners of the Parent Company** | **Equity attributable to owners of the Parent Company** | **Equity attributable to owners of the Parent Company** |  |  |
|  | **Notes** |  | **Share**<br>**capital** | **Capital**<br>**surplus** | **Other components of equity** | **Retained earnings** | **Sub total** | **Non-controlling interests** | **Total equity** |
| **Balance at January 1, 2024** |  | W | 3474450 | 27098264 | 4016535 | 428498582 | 463087831 | 640131 | 463727962 |
| &nbsp;&nbsp;&nbsp;Profit for the year |  |  | - | - | - | 84919277 | 84919277 | (17069) | 84902208 |
| &nbsp;&nbsp;&nbsp;Remeasurements of defined benefit liabilities |  |  | - | - | 15999 | - | 15999 | 7955 | 23954 |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustments |  |  | - | - | 19768017 | - | 19768017 | 57667 | 19825684 |
| Transactions with Owners: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital contribution from non-controlling interests |  |  | - | (13001) | - | - | (13001) | (3008) | (16009) |
| &nbsp;&nbsp;&nbsp;Transactions with non-controlling interests |  |  | - | (105902) | - | - | (105902) | 5562 | (100340) |
| **Balance at December 31, 2024** |  | W | 3474450 | 26979361 | 23800551 | 513417859 | 567672221 | 691238 | 568363459 |
| **Balance at January 1, 2025** |  | W | 3474450 | 26979361 | 23800551 | 513417859 | 567672221 | 691238 | 568363459 |
| Total comprehensive income: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Profit for the year |  |  | - | - | - | 67463714 | 67463714 | (154385) | 67309329 |
| &nbsp;&nbsp;&nbsp;Remeasurements of defined benefit liabilities | &nbsp;&nbsp;&nbsp;Remeasurements of defined benefit liabilities |  | - | - | 17479 | - | 17479 | 5598 | 23077 |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustments | &nbsp;&nbsp;&nbsp;Foreign currency translation adjustments |  | - | - | 1705016 | - | 1705016 | (34120) | 1670896 |
| **Balance at December 31, 2025** |  | W | 3474450 | 26979361 | 25523046 | 580881573 | 636858430 | 508331 | 637366761 |

---

*See accompanying notes to the consolidated financial statements.*

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GRAVITY CO., LTD. and Subsidiaries

Consolidated Statements of Cash Flow

For the years ended December 31, 2025 and 2024

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| | | | | |
|:---|:---|:---|:---|:---|
| *(In thousands of won)* | **Notes** |  | **2025** | **2024** |
| **Cash flows from operating activities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Profit for the year |  | W | 67309329 | 84902208 |
| &nbsp;&nbsp;&nbsp;Adjustments  | 21 |  | 24140164 | 14492995 |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities | 21 |  | (5376285) | (3821168) |
| &nbsp;&nbsp;&nbsp;Interest received |  |  | 16550426 | 15053915 |
| &nbsp;&nbsp;&nbsp;Interest paid |  |  | (271969) | (130027) |
| &nbsp;&nbsp;&nbsp;Income taxes paid |  |  | (26259448) | (31942749) |
| **Net cash provided by operating activities** |  |  | 76092217 | 78555174 |
| **Cash flows from investing activities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Decrease in other current financial asset |  |  | 8333 | 6667 |
| &nbsp;&nbsp;&nbsp;Proceeds from disposal of property and equipment | 8 |  | 1503 | 6673 |
| &nbsp;&nbsp;&nbsp;Decrease in other non-current financial assets |  |  | 44211 | 8496  |
| &nbsp;&nbsp;&nbsp;Increase in short-term financial instruments |  |  | (89633165) | (42264550) |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment | 8 |  | (1055422) | (613947) |
| &nbsp;&nbsp;&nbsp;Purchase of intangible assets | 9 |  | (5266047) | (4147357) |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase in other non-current financial assets |  |  | (751076) | (30374) |
| **Net cash used in investing activities** |  |  | (96651663) | (47034392) |
| **Cash flows from financing activities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Repayment of lease liabilities | 22 |  | (4514664) | (4525288) |
| &nbsp;&nbsp;&nbsp;Cost of issuing shares of subsidiaries |  |  | - | (16009) |
| &nbsp;&nbsp;&nbsp;Acquisition of non-controlling interests |  |  | - | (100339) |
| **Net cash used in financing activities** |  |  | (4514664) | (4641636) |
| **Effects of exchange rate changes on cash and cash equivalents** | **Effects of exchange rate changes on cash and cash equivalents** |  | (224502) | 17937065 |
| **Net increase (decrease) in cash and cash equivalents** |  |  | (25298612) | 44816211 |
| **Cash and cash equivalents at beginning of the year** |  |  | 228898026 | 184081815 |
| **Cash and cash equivalents at end of the year** |  | W | 203599414 | 228898026 |

---

*See accompanying notes to the consolidated financial statements.*

**&nbsp;&nbsp;&nbsp;&nbsp;**

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GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**1. General Information**

&nbsp;&nbsp;&nbsp;&nbsp;(1) The Parent Company

GRAVITY CO., LTD. ("the Parent Company") was incorporated on April 4, 2000, to engage in developing and publishing online and mobile games, and other related business. The Parent Company's headquarter is located at 15F, 396 World Cup buk-ro, Mapo-gu, Seoul, Korea. The Parent Company's principal game product, "Ragnarok", a massive multi-player online role-playing game, was commercially launched in August 2002, and currently operated internationally in 91 markets. The Parent Company also operates many other games.

On February 8, 2005, the Parent Company listed its shares on the Nasdaq Stock Market in the United States, and issued 1,400,000 shares of common stocks in the form of American Depositary shares ("ADSs") under the symbol "GRVY".

As of December 31, 2025, the Parent Company's total paid-in capital amounts to W3,474,450 thousand. The Parent Company's major shareholders and their respective percentage of ownership as of December 31, 2025 are as follows:

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| | | |
|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;**Number of shares** | &nbsp;&nbsp;&nbsp;&nbsp;**Ownership (%)** |
| GungHo Online Entertainment, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4121737 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;59.31 |
| Others | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2827163 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40.69 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6948900 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100.00 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(2) Consolidated subsidiaries

Details of the consolidated subsidiaries as of December 31, 2025 and 2024 are as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| |  |  |  | **Percentage of ownership (%)** | **Percentage of ownership (%)** |
| **Subsidiaries** | **Location** | **Main business** | **Fiscal** <br>**year end** | **December 31, 2025** | **December 31, 2024** |
| Gravity Interactive, Inc. | USA | &nbsp;&nbsp;Online and mobile game services | December | 100 | 100 |
| Gravity NeoCyon, Inc. (\*) | Korea | Mobile Game Development and Service | December | 100 | 100 |
| Gravity Communications Co., Ltd. | Taiwan | Online and mobile game services | December | 100 | 100 |
| PT. Gravity Game Link. | Indonesia | Online and mobile game services | December | 70 | 70 |
| Gravity Game Tech Co., Ltd. | Thailand | Online and mobile game services | December | 100 | 100 |
| Gravity Game Arise Co., Ltd. | Japan | Online and mobile game services | December | 100 | 100 |
| Gravity Game Hub PTE., Ltd. | Singapore | Online and mobile game services | December | 100 | 100 |
| Gravity Game Vision Limited. | Hong Kong | Online and mobile game services | December | 100 | 100 |
| Gravity Game Unite SDN. BHD. | Malaysia | Online and mobile game services | December | 100 | - |

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(\*) Gravity Game Unite SDN. BHD was established in March 2025 and was included as a subsidiary for the year ended December 31, 2025.

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GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**1. General Information, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(3) Condensed financial information of subsidiaries as of and for the years ended December 31, 2025 and 2024 are as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2025** | **2025** | **2025** |
| **Subsidiaries** |  | **Total**<br>**assets(\*)** | **Total**<br>**liabilities(\*)** | **Revenues(\*)** | **Profit (loss)** <br>**for the period(\*)** |
| Gravity Interactive, Inc. | W | 42811520 | 29821998 | 193942577 | 2016809 |
| Gravity NeoCyon, Inc. |  | 14586231 | 3380018 | 18287248 | 487256 |
| Gravity Communications Co., Ltd. |  | 33271379 | 8164808 | 45735096 | 5846620 |
| PT. Gravity Game Link. |  | 2429974 | 735538 | 2961141 | (514617) |
| Gravity Game Tech Co., Ltd. |  | 66438880 | 12474843 | 46040690 | 9776017 |
| Gravity Game Arise Co., Ltd.  |  | 11527830 | 5729683 | 14995225 | (2513369) |
| Gravity Game Hub PTE., Ltd. |  | 52912619 | 9761767 | 74135929 | 1346603 |
| Gravity Game Vision Limited  |  | 51911717 | 19013461 | 94875222 | 11296112 |
| Gravity Game Unite SDN. BHD. |  | 945080 | 431236 | 28194 | (265995) |

---

(\*1) Amounts before eliminating intercompany transactions.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2024** | **2024** | **2024** | **2024** |
| **Subsidiaries** |  | **Total**<br>**assets(\*)** | **Total**<br>**liabilities(\*)** | **Revenues(\*)** | **Profit (loss)** <br>**for the period(\*)** |
| Gravity Interactive, Inc. | W | 28078172 | 16855468 | 39938248 | 73691  |
| Gravity NeoCyon, Inc. |  | 15000011 | 4281053 | 20315748 | 1771492 |
| Gravity Communications Co., Ltd. |  | 27121263 | 6687225 | 35188837 | 1754375 |
| PT. Gravity Game Link. |  | 2693086 | 366844 | 1475922 | (50963) |
| Gravity Game Tech Co., Ltd. |  | 72122833 | 23779945 | 48771433 | 6860364 |
| Gravity Game Arise Co., Ltd. |  | 7712161 | 1192327 | 5574326 | (6237282) |
| Gravity Game Hub PTE., Ltd. |  | 68727648 | 13683947 | 89256880 | 13815260 |
| Gravity Game Vision Limited. |  | 72467900 | 26755643 | 160067411 | 21945899 |

---

(\*1) Amounts before eliminating intercompany transactions.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**2. Basis of Presentation**

The consolidated financial statements have been prepared in accordance with Korean International Financial Reporting Standards ("K-IFRS"), as prescribed in the *Act on External Audits of Stock Companies, Etc. in the Republic of Korea.* The accompanying consolidated financial statements have been restructured and translated into English from the Korean language financial statements.

Certain information attached to the Korean language financial statements, but not required for a fair presentation of the Gravity Co., Ltd. and its subsidiaries (the "Group") financial position, financial performance or cash flows, is not presented in the accompanying consolidated financial statements.

These consolidated financial statements were authorized for issuance by the Board of Directors on March 6, 2026, and are expected to be submitted for approval at the shareholders' meeting to be held on March 27, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Basis of measurement

The consolidated financial statements have been prepared on the historical cost basis.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Use of judgments and estimates

The preparation of the consolidated financial statements in conformity with K-IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The estimates and assumptions that have significant risk of affecting the carrying amounts of assets and liabilities for the reporting period are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;**(a) Deferred revenue**

The Group sells virtual currency and paid content that game users can use in mobile games. To recognize revenue generated from game users' microtransactions, the Group estimates and applies the game users' life cycle. The game user life cycle is calculated for game users with a payment history by averaging the connection period from the date of the first payment to the date of the last connection of the relevant game users.

The Group considers a user to be an active user if the period between the game user's most recent connection date and the end of the reporting period is equal to or shorter than the expected game user's life cycle. Within the life cycle estimated in this manner, the Group estimates deferred revenue by classifying items held by active users as of the end of the reporting period by their attributes. To estimate the expected period of use, the Group analyzes behavioral patterns such as game users' payments and connections to estimate the period of use, and periodically reviews whether there are changes in these estimates.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**3. New Standards and Interpretations Adopted During the Year and Resulting Changes in Accounting Policies**

The Group has applied the following standards and amendments for the first time for the annual reporting period commencing on January 1, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Amendments to K-IFRS No. 1021 'The Effects of Changes in Foreign Exchange Rates' - Lack of Exchangeability.

It requires an entity to assess the exchangeability of a currency and, if it is not exchangeable into another currency, to estimate the spot exchange rate and disclose relevant information. The amendments to these standards do not have a material impact on the financial statements.

**4. Significant Accounting Policies**

The principal accounting policies applied in the preparation of these consolidated financial statements in accordance with the K-IFRS are set out below. These policies have been consistently applied to all years presented, except if mentioned otherwise in Note 3.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Consolidation

The Group has prepared the consolidated financial statements in accordance with K-IFRS No. 1110 *Consolidated Financial Statements*.

Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are consolidated from the date on which control is obtained by the Group. They are deconsolidated from the date on which control ceases.

The acquisition method of accounting is used to account for business combinations by the Group. The consideration transferred is measured at the fair values of the assets transferred, and identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis at the non-controlling interest's proportionate share of the acquired entity's net identifiable assets. Acquisition-related costs are expensed as incurred.

The excess of consideration transferred, amount of any non-controlling interest in the acquired entity and acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is recognized directly in the profit as a bargain purchase.

Intercompany transactions, balances and unrealized gains on transactions between consolidated companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(2) Segment reporting

Information of each operating segment is reported in a manner consistent with the internal business segment reporting provided to the chief operating decision-maker (Note 24). The chief operating decision-maker is responsible for allocating resources and assessing performance of the operating segments.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Cash and Cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, and other short-term investments with original maturities of three months or less that are readily convertible to known amounts of cash.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Financial Assets

&nbsp;&nbsp;&nbsp;&nbsp;(a) Classification

At initial recognition, the Group classifies its financial assets in the following measurement categories:

measured at fair value through profit or loss;

measured at fair value through other comprehensive income; and

measured at amortized cost.

The classification depends on the Group's business model for managing the financial assets and the contractual terms of the cash flows.

For financial assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. The Group reclassifies debt investments when, and only when its business model for managing those assets changes.

For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. Changes in fair value of equity instruments not elected as equity investment at fair value through other comprehensive income will be recognized in profit or loss.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Measurement

At initial recognition, the Group measures a financial asset at its fair value plus, for a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(4) Financial Assets, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(b) Measurement, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(i) Debt instruments

Subsequent measurement of debt instruments depends on the Group's business model for managing the asset and the cash flow characteristics of the asset. The Group classifies its debt instruments into one of the following three measurement categories:

Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets is included in 'finance income' using the effective interest rate method.

Fair value through other comprehensive income: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets' cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income. Movements in the carrying amount are taken through other comprehensive income, except for the recognition of impairment loss (reversal of impairment loss), interest income and foreign exchange gains and losses which are recognized in profit or loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss. Interest income from these financial assets is included in 'finance income' using the effective interest rate method. Foreign exchange gains and losses are presented in 'finance income or costs' and impairment losses are presented in 'other non-operating expenses'.

Fair value through profit or loss: Assets that do not meet the criteria for amortized cost or fair value through other comprehensive income are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognized in profit or loss and presented net in the statement of profit or loss within 'finance income or costs' in the year in which it arises.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(4) Financial Assets, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(b) Measurement, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(ii) Equity instruments

The Group subsequently measures all equity investments at fair value. Where the Group's management has elected to present fair value gains and losses on equity investments, which are held for long-term investment or strategic purpose, in other comprehensive income. There is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment.

Changes in the fair value of financial assets at fair value through profit or loss are recognized in 'other non-operating income or expenses' in the statement of profit or loss as applicable. Impairment loss (reversal of impairment loss) on equity investments measured at fair value through other comprehensive income are not reported separately from other changes in fair value.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Impairment

The Group recognizes loss allowances for expected credit losses("ECLs") on:

financial assets measured at amortized cost;

debt investments measured at fair value through other comprehensive income; and

contract assets under K-IFRS No. 1115.

The Group measures loss allowances at an amount equal to lifetime ECLs, except for the following, which are measured at 12-month ECLs:

debt securities that are determined to have low credit risk at the reporting date; and

other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowances for accounts and other receivables (including lease receivables) and contract assets are always measured at an amount equal to lifetime ECLs.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group's historical experience and informed credit assessment, that includes forward-looking information.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(4) Financial Assets, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(c) Impairment, Continued

The Group considers a financial asset to be in default when:

the debtor is unlikely to pay its obligations to the Group in full, without recourse by the Group to actions such as realizing security (if any is held); or

the financial asset is more than 90 days past due.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.

12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk.

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

At each reporting date, the Group assesses whether financial assets carried at amortized cost and debt securities at fair value through other comprehensive income are credit-impaired. A financial asset is 'credit-impaired' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. For debt securities at fair value through other comprehensive income, the loss allowance is charged to profit or loss.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(4) Financial Assets, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(d) Recognition and Derecognition

Regular way purchases and sales of financial assets are recognized or derecognized on trade-date, the date on which the Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.

If a transfer does not result in derecognition because the Group has retained substantially all the risks and rewards of ownership of the transferred asset, the Group continues to recognize the transferred asset in its entirety and recognizes a financial liability for the consideration received.

&nbsp;&nbsp;&nbsp;&nbsp;(e) Offsetting of financial instruments

Financial assets and liabilities are offset and the net amount reported in the consolidated statements of financial position where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the assets and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Group or the counterparty.

&nbsp;&nbsp;&nbsp;&nbsp;(5) Accounts receivable

Account receivable are recognized initially at the amount of consideration that is unconditional, unless they contain significant financing components in which case they are recognized at fair value. Account receivable are subsequently measured at amortized cost using the effective interest method, less loss allowance.

&nbsp;&nbsp;&nbsp;&nbsp;(6) Property and Equipment

Property and equipment are initially measured at cost. The cost of property and equipment includes expenditures arising directly from the construction or acquisition of the asset, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management, and the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(6) Property and Equipment, Continued

Property and equipment, subsequently, are carried at cost less accumulated depreciation and accumulated impairment losses.

Subsequent costs are recognized in the carrying amount of property and equipment at cost or, if appropriate, as a separate item if it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be reliably measured.

Depreciation of all property and equipment, except for land, is calculated using the straight-line method to allocate their cost or revalued amounts, net of their residual values, over their estimated useful lives as follows:

---

| | |
|:---|:---|
| | Estimated Useful Lives |
| Computer and other equipment | 4 years |
| Furniture and fixture | 4 years |
| Vehicles | 4 years |
| Leasehold improvements | (\*) |
| Right-of-use assets | (\*) |

---

(\*) The Group depreciates Right-of-use asset and the Leasehold improvements from the commencement date and the available date to the earlier date between the end of the lease term and the expiration date of Right-of-use asset's useful life using the straight-line method.

Depreciation methods, useful lives, and residual values are reviewed at the end of each reporting date and adjusted, if appropriate. The change is accounted for as a change in an accounting estimate.

&nbsp;&nbsp;&nbsp;&nbsp;(7) Intangible Assets

Intangible assets, except for goodwill, are initially recognized at its historical cost, and carried at cost less accumulated amortization and accumulated impairment losses.

The Group amortizes intangible assets with a limited useful life using the straight-line method over the following periods:

---

| | |
|:---|:---|
| | Estimated Useful Lives |
| Software | 1~3 years |
| Industrial property rights | 10 years |
| Other intangible assets | 1~5 years |

---

Expenditure on research activities is recognized in profit or loss as incurred. Development expenditure is capitalized only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Group intends to and has sufficient resources to complete development and to use or sell the asset. Other development expenditure is recognized in profit or loss as incurred.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(7) Intangible Assets, Continued

The Group entered into a game licensing agreement with a number of third parties to gain exclusive rights to the games developed by those companies. The license fee payments are recognized as other intangible assets and amortized over the term of the contract using the straight-line method.

&nbsp;&nbsp;&nbsp;&nbsp;(8) Impairment of Non-financial Assets

At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than contract assets, incremental costs of obtaining a contract, costs to fulfil a contract, employee benefit related assets and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. Goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any indication of impairment, are tested for impairment annually by comparing their recoverable amounts to their carrying amounts.

The recoverable amount of an asset or cash generating unit ("CGU") is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using an adjusted discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

<br>An impairment loss is recognized in profit or loss if the carrying amount of an asset or CGU exceeds its recoverable amount.

&nbsp;&nbsp;&nbsp;&nbsp;(9) Leases

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease in K-IFRS No. 1116.

&nbsp;&nbsp;&nbsp;&nbsp;(a) As a lessee

At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of its relative stand-alone prices. However, the Group has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component by class of underlying asset.

The Group determines the lease term as the non-cancellable period of a lease, together with both (a) periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and (b) periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option. When the lessee and the lessor each has the right to terminate the lease without permission from the other party, the Group should consider a termination penalty in determining the period for which the contract is enforceable.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(9) Leases, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(a) As a lessee, Continued

The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased.

Lease payments included in the measurement of the lease liability comprise the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fixed payments, including in-substance fixed payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• amounts expected to be payable under a residual value guarantee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Group is reasonably certain not to terminate early.

The lease liability is measured at amortized cost using the effective interest method. It is re-measured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group's estimate of the amount expected to be payable under a residual value guarantee, if the Group changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(9) Leases, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(a) As a lessee, Continued

When the lease liability is re-measured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The Group presents right-of-use assets that do not meet the definition of investment property in 'Property and equipment' and lease liabilities in 'Other current liabilities' and 'Other non-current liabilities' in the consolidated statement of financial position.

The Group has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets and short-term leases. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

&nbsp;&nbsp;&nbsp;&nbsp;(b) As a lessor

At inception or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.

When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.

To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Group applies the exemption described above, then it classifies the sub-lease as an operating lease.

If an arrangement contains lease and non-lease components, then the Group applies K-IFRS No. 1115 to allocate the consideration in the contract.

The Group applies the de-recognition and impairment requirements in K-IFRS No. 1109 to the net investment in the lease. The Group further regularly reviews estimated unguaranteed residual values used in calculating the gross investment in the lease.

The Group recognizes lease payments received under operating leases as income on a straight-line basis over the lease term as part of 'non-operating income'.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(10) Financial Liabilities

&nbsp;&nbsp;&nbsp;&nbsp;(a) Classification and measurement

The Group's financial liabilities at fair value through profit or loss are financial instruments held for trading. A financial liability is held for trading if it is incurred principally for the purpose of repurchasing in the near term. A derivative that is not designated as a hedging instruments and an embedded derivative that is separated are also classified as held for trading.

The Group classifies non-derivative financial liabilities, except for financial liabilities at fair value through profit or loss, financial guarantee contracts and financial liabilities that arise when a transfer of financial assets does not qualify for de-recognition, as financial liabilities carried at amortized cost and present as 'accounts payable', 'other current liabilities' and 'other non-current liabilities' in the consolidated statement of financial position.

&nbsp;&nbsp;&nbsp;&nbsp;(b) De-recognition

Financial liabilities are removed from the consolidated statement of financial position when it is extinguished; for example, when the obligation specified in the contract is discharged or cancelled or expired or when the terms of an existing financial liability are substantially modified. The difference between the carrying amount of a financial liability extinguished or transferred to another party and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

&nbsp;&nbsp;&nbsp;&nbsp;(11) Provisions and Contingent Liabilities

Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability.

In addition, when there is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability, a disclosure regarding the contingent liabilities is made in the notes to the financial statements.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(12) Foreign Currency Translation

&nbsp;&nbsp;&nbsp;&nbsp;(a) Functional and presentation currency

Items included in the consolidated financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which each entity operates (the "functional currency"). The consolidated financial statements are presented in Korean won, which is the Parent Company's functional and presentation currency.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the exchange rate at the reporting date are generally recognized in profit or loss. They are recognized in other comprehensive income if they relate to qualifying cash flow hedges and qualifying effective portion of net investment hedges in a foreign operation.

Exchange differences arising on non-monetary financial assets and liabilities such as equity instruments at fair value through profit or loss and equity instruments at fair value through other comprehensive income are recognized in profit or loss and other comprehensive income, respectively, as part of the fair value gain or loss.

&nbsp;&nbsp;&nbsp;&nbsp;(13) Statement of cash flows

The Group has elected to present cash flows from operating activities using the indirect method. Cash flows denominated in a foreign currency are reported using average exchange rate.

&nbsp;&nbsp;&nbsp;&nbsp;(14) Revenues from contracts with customers

The Group engages in game licensing, IP licensing and game publishing businesses.

Revenue is measured at the fair value of the consideration received or receivable for the sale of goods or rendering of services arising from the normal course of the business. Amounts recognized as revenue are net of value added taxes, returns, rebates and discounts.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(14) Revenues from contracts with customers, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(a) Revenue from micro-transaction and subscription

The Group recognizes micro-transaction revenue of online and mobile games when the Group satisfies its performance obligations.

Whether the performance obligations are satisfied depends on the natures of virtual currency and in-game virtual items. Items are categorized into consumable, periodic, and permanent in-game virtual items.

Consumable in-game virtual items are items that are consumed by the specific action of a game user, and periodic in-game virtual items are items that can be used repeatedly during a specified effective period. Permanent in-game virtual items are items that can be used by game users repeatedly without an effective period.

The accounting policy on revenue recognition is described below in relation to micro-transaction revenue from the sales of virtual currency and items.

&nbsp;&nbsp;&nbsp;&nbsp;(i) Online Games

The specific method of recognizing and deferring revenue for virtual currency and consumable, periodic, and permanent items purchased with virtual currency is as follows.

At the end of the reporting period, the Group defers the total amount of remaining virtual currency.

For consumable in-game virtual items, the related revenue is recognized when the in-game virtual item is consumed. The Group defers the revenue for remaining amounts of virtual items owned by active paying users within the estimated user life cycle at the end of the reporting period.

For periodic in-game virtual items, the related revenue is recognized ratably over the effective period. The Group defers the revenue for remaining effective period.

For permanent in-game virtual items, revenue is recognized ratably over the estimated user life cycle. The Group defers the revenue for remaining period of estimated user life cycle at the end of the reporting period.

&nbsp;&nbsp;&nbsp;&nbsp;(ii) Mobile Games

The specific method of recognizing and deferring revenue for virtual currency and consumable, periodic, and permanent items purchased with virtual currency is as follows.

Mobile game users purchase virtual currency that can be used to purchase in-game items. The Group has no refund obligation after the game users purchase virtual currency.

At the end of the reporting period, the Group defers the revenue for the remaining virtual currency possessed by active paying users.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(14) Revenues from contracts with customers, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(a) Revenue from micro-transaction and subscription, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(ii) Mobile Games, Continued

For consumable in-game virtual items, revenue is recognized when the in-game virtual item is consumed. The Group defers the revenue for remaining virtual items possessed by active users within the estimated user life cycle at the end of the reporting period.

For periodic in-game virtual items with effective period, revenue is recognized ratably over the effective period. The Group defers the revenue for remaining effective period.

For permanent in-game virtual items, revenue is recognized ratably over the estimated user life cycle. The Group defers the revenue for remaining period of estimated user life cycle at the end of the reporting period.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Royalties and License Fees

In connection with the Group's online and mobile games, the Group enters into license agreements in connection with the right to access the intellectual property, such as game character images and stories. The Group believes that the agreement is a promise to provide a right to the customer to access the related IP because the Group will undertake activities that significantly affect the intellectual property to which the customer has rights, the rights granted by the license directly expose the customer to any positive or negative effects of the Group's activities, and those activities do not result in the transfer of a good or a service to the customer as those activities occur. Therefore, the Group's performance obligations in connection with these agreements are satisfied over time.

Since the nature of the license promise is to provide customers with access to the intellectual property of the Group during the license period, the Group's performance obligation corresponds to the performance obligation satisfied over time, and revenue is recognized over the license period. The Group recognizes revenue for the license fee through the straight-line method during the contract period, and for the running royalty revenue, the revenue is recognized on an accrual basis at the time the revenue distribution is established in accordance with the terms of the contract. When the running royalty revenue based on the contractual royalty rate and the actual revenue of the licensee exceeds the ratably recognized minimum guarantee, the excess amount is then recognized as revenue and accounts receivable.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Other revenue

Other revenue consists of revenue from sales of console games, game character merchandise, animation and other services, including website development and operation services for third parties. Revenues from development and operation services for third parties are recognized over time by measuring progress towards complete satisfaction of a performance obligation.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(14) Revenues from contracts with customers, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(d) Incremental costs of obtaining contract

The Group pays platform processing fees to operate mobile games on third party platforms. These fees are charged based on the game users' purchases in cash and considered as incremental cost of obtaining contracts with customers and therefore capitalized. The Group presents these costs as prepaid expense and amortizes them to costs of revenue at the same time when the related revenue of the services provided to the game users are recognized.

&nbsp;&nbsp;&nbsp;&nbsp;(15) Current and Deferred Tax

The tax expense for the period consists of current and deferred tax. Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. The tax expense is measured at the amount expected to be paid to the taxation authorities, using the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation, and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Group measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss.

Deferred tax assets are recognized only if it is probable that future taxable amounts will be available to utilize those temporary differences and tax credit.

The Group recognizes a deferred tax liability for all taxable temporary differences associated with investments in subsidiaries, associates, and interests in joint arrangements, except to the extent that the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. In addition, the Group recognizes a deferred tax asset for all deductible temporary differences arising from such investments to the extent that it is probable the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilized.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(16) Employee Benefits

&nbsp;&nbsp;&nbsp;&nbsp;(a) Short-term employee benefits

Short-term employee benefits are employee benefits that are due to be settled within 12 months after the end of the period in which the employees render related services. When an employee has rendered a service to the Group during an accounting period, the Group recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Post-employment benefits

The Group's retirement pension plans are divided into defined contribution plans and defined benefit plans.

The Group has a defined contribution pension plan with the related contribution to the pension plan recorded as severance benefit expenses for the employees with service period over a year. The Group recognizes provision for severance benefits for the employees with service period less than a year.

A defined benefit plan is a pension plan that is not a defined contribution plan. Generally, post-employment benefits are payable after the completion of employment, and the benefit amount depends on the employee's age, periods of service or salary levels. The liability recognized in the statement of financial position in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms approximating to the terms of the related obligation. Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in profit or loss as past service costs.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(17) Standards issued but not yet effective

A number of new standards are effective for annual periods beginning after January 1, 2025 and earlier application is permitted; however, the Group has not early adopted the new or amended standards in preparing these consolidated financial statements.

The following new and amended standards and interpretations are not expected to have a significant impact on the Group's consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Classification and Measurement of Financial Instruments (Amendment to K-IFRS 1109 'Financial Instruments' and K-IFRS 1107 'Financial Instruments: Disclosures')

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Annual Improvements to IFRS Accounting Standards

-K-IFRS 1101 'First-time adoption of International Financial Reporting Standards';

-K-IFRS 1107 'Financial instruments: Disclosures';

-K-IFRS 1109 'Financial instruments';

-K-IFRS 1110 'Consolidated Financial Statements' ; and

-K-IFRS 1007 'Statement of cash flows'

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• K-IFRS 1118 Presentation and Disclosure in Financial Statements

**5. Cash and cash equivalents**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Cash and cash equivalents as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* | | **December 31, 2025** | **December 31, 2024** |
| Demand deposits, etc. | W | 203,599,414 | 228,898,026 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(2) The Group does not have any restricted cash and cash equivalents as of December 31, 2025 and 2024.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**6. Financial Instruments by Category**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Carrying amounts of financial instruments by category as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025** | **December 31, 2024** |
| **Financial assets at amortized cost** | **Financial assets at amortized cost** | **Financial assets at amortized cost** | **Financial assets at amortized cost** |
| Cash and cash equivalents | W | 203599414 | 228898026 |
| Short-term financial instruments |  | 415033514 | 324304040 |
| Accounts receivable, net |  | 56318021 | 81152458 |
| Other receivables, net |  | 531784 | 15557 |
| Other current financial assets(\*1) |  | 4332769 | 6601519 |
| Other non-current financial assets(\*2) |  | 3211881 | 1766588 |
| **Financial assets at fair value through profit or loss** |  |  |  |
| Non-current financial assets measured at fair value (\*3) |  | 600000 | - |
|  | W | 683627383 | 642738188 |

---

Since the carrying amount is a reasonable approximation of fair value, it has been excluded from the fair value disclosure.

(\*1) Other current financial assets consist of accrued income and deposits.

(\*2) Other non-current financial assets consist of deposits.

(\*3) Long-term financial assets measured at fair value consist of convertible bonds and are included in other non-current financial assets.

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025** | **December 31, 2024** |
| **Financial liabilities at amortized cost** | **Financial liabilities at amortized cost** | **Financial liabilities at amortized cost** | **Financial liabilities at amortized cost** |
| Accounts payable | W | 56061346 | 63327918 |
| Long-term accounts payable |  | 622745 | 220108 |
| Accrued expenses(\*1) |  | 385363 | 312563 |
| **Other financial liabilities** |  |  |  |
| lease liabilities(\*2) |  | 8311560 | 7121523 |
|  | W | 65381014 | 70982112 |

---

Since the carrying amount is a reasonable approximation of fair value, it has been excluded from the fair value disclosure.

(\*1) Annual leave allowance, bonus accruals, etc. that should be paid to employees are excluded.

(\*2) Lease liabilities were excluded from fair value disclosures in accordance with K-IFRS No. 1107 'Financial Instruments: Disclosures.'

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**6. Financial Instruments by Category, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(2) Net income(expenses) from financial instruments for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2024** |
| **Financial assets at amortized cost** |  |  |  |
| &nbsp;&nbsp;Interest income | W | 15821425 | 17058776 |
| &nbsp;&nbsp;Differences in foreign currency |  | (4218327) | 5813143 |
|  |  | 11603098 | 22871919 |
| **Financial assets at fair value through profit or loss** | **Financial assets at fair value through profit or loss** | **Financial assets at fair value through profit or loss** | **Financial assets at fair value through profit or loss** |
| &nbsp;&nbsp;Interest income |  | 633 | - |
|  | W | 11603731 | 22871919 |

---

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2024** |
| **Financial liabilities at amortized cost** |  |  |  |
| &nbsp;&nbsp;Differences in foreign currency | W | 2220834 | (1773223) |
| **Other financial liabilities** |  |  |  |
| Interest expense |  | (281809) | (135377) |
|  | W | 1939025 | (1908600) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(3) Fair value hierarchy

Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2: all inputs other than quoted prices included in level 1 that are observable (either directly that is, prices, or indirectly that is, derived from prices) for the assets or liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3: unobservable inputs for the assets or liabilities.

The fair value of financial instruments traded in an active market is determined based on the quoted market price as of the end of the reporting period. If the quoted prices are readily and regularly available through exchanges, sellers, brokers, industry groups, rating agencies or regulators and such prices represent actual market transactions that occur regularly between independent parties, they are considered active markets. These products are included in Level 1.

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. These valuation techniques use as much market observable information as possible and use the least amount of company-specific information. At this time, if all the significant input variables required to measure the fair value of a instrument are observable, the instrument is included in Level 2.

If more than one significant input variable is not based on observable market information, the item is included in Level 3.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**6. Financial Instruments by Category, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(3) Fair value hierarchy, Continued

The valuation techniques used to measure the fair value of a financial instrument include:

- Market price or dealer price of a similar financial instrument

- The fair value of derivative instruments is determined by discounting the amount to present value using the prevailing exchange rate as of the end of the reporting period

For the other financial instruments, the Group applied other valuation techniques such as discounted cash flow, etc.

The following table presents the amounts by fair value hierarchy as of the end of the current reporting period

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Level 1 | &nbsp;&nbsp;&nbsp;&nbsp;Level 2 | Level 3 | Total |
| Fair value measurements |  |  |  |  |
| Long-term financial assets measured at fair value | - | - | 600000 | 600000 |

---

**7. Accounts and Other Receivables**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Accounts and other receivables as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)*  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Accounts**<br>**receivables** | **Other receivables** | **Accounts**<br>**receivables** | **Other receivables** |
| Non-related party | W  | 55399927 | 2904557 | 78368067 | 1577283 |
| Related party  |  | 1537483 | - | 3334062 | - |
| Less: Loss allowance |  | (619389) | (218) | (549671) | (5101) |
| Accounts and other receivables, net | W  | 56318021 | 2904339 | 81152458 | 1572182 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(2) Changes in the loss allowance

of accounts and other receivables during the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2025** | **2024** | **2024** |
|  |  | **Accounts**<br>**receivables** | **Other receivables** | **Accounts**<br>**receivables** | **Other receivables** |
| Beginning balance | W  | 549671 | 5101 | 625940 | 5092 |
| Bad debt expenses |  | 757099 | (4883) | 588809 | 9 |
| Write-off |  | (687381) | - | (665078) | - |
| Ending balance | W  | 619389 | 218 | 549671 | 5101 |

---

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**7. Accounts and Other Receivables, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(3) Expected credit losses (ECLs) and credit risk exposures for accounts receivable as of December 31, 2025 and 2024 are as follows

&nbsp;&nbsp;&nbsp;&nbsp;(a) Accounts receivable

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In thousands of won)* | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Expected loss rate(%)** |  | **Carrying**<br>**amount** | **Loss<br>allowance** |
| Not due or overdue for less than 90 days | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.90 | W | 56616891 | 510464 |
| More than 90 days ~ Less than 180 days | 6.7 |  | 221308 | 14884 |
| More than 180 days ~ Less than 270 days | 87.7 |  | 41362 | 36254 |
| More than 270 days ~ Less than 1 year | 99.8 |  | 39564 | 39502 |
| More than 1 year | 100.0 |  | 18285 | 18285 |
|  |  | W | 56937410 | 619389 |
| *(In thousands of won)* | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Expected loss rate(%)** |  | **Carrying**<br>**amount** | **Loss<br>allowance** |
| Not due or overdue for less than 90 days | 0.43 | W  | 81335050 | 350478 |
| More than 90 days ~ Less than 180 days | 22.5 |  | 214517 | 48305 |
| More than 180 days ~ Less than 270 days | 87.0 |  | 12851 | 11177 |
| More than 270 days ~ Less than 1 year | 100.0 |  | 4430 | 4430 |
| More than 1 year | 100.0 |  | 135281 | 135281 |
|  |  | W | 81702129 | 549671 |

---

<br> (b) Other receivables

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In thousands of won)* | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Expected loss rate(%)** |  | **Carrying**<br>**amount** | **Loss<br>allowance** |
| Not due or overdue for less than 90 days | 0.0 | W | 2901347 | - |
| More than 90 days ~ Less than 180 days | 0.0 |  | 2992 | - |
| More than 180 days ~ Less than 270 days | 0.0 |  | - | - |
| More than 270 days ~ Less than 1 year | 0.0 |  | - | - |
| More than 1 year | 100 |  | 218 | 218 |
|  |  | W | 2904557 | 218 |
| *(In thousands of won)* | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Expected loss rate(%)** |  | **Carrying**<br>**amount** | **Loss<br>allowance** |
| Not due or overdue for less than 90 days | 0.0 | W | 1566100 | 9 |
| More than 90 days ~ Less than 180 days | 0.0 |  | 6091 | - |
| More than 180 days ~ Less than 270 days | 0.0 |  | - | - |
| More than 270 days ~ Less than 1 year | 0.0 |  | - | - |
| More than 1 year | 100 |  | 5092 | 5092 |
|  |  | W | 1577283 | 5101 |

---

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GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**7. Accounts and Other Receivables, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(3) Expected credit losses (ECLs) and credit risk exposures for accounts receivable as of December 31, 2025 and 2024 are as follows, Continued:

In assessing the recoverability of accounts and other receivables, the Group considers changes in the credit rating of accounts and other receivables from the commencement of the credit to the end of the reporting period.

The Group applies simplified approach for accounts and other receivables to measure the loss allowance at an amount equal to lifetime expected credit losses. To measure the expected credit losses, accounts and other receivables are grouped based on credit risk characteristics and the duration of past due balances. ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls. The Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes the Group's historical experience and informed credit assessment, that includes forward-looking information.

**8. Property and Equipment**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Details of property and equipment as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Acquisition**<br>**cost** | **Accumulated depreciation** | **Carrying**<br>**amount** | **Acquisition cost** | **Accumulated depreciation** | **Carrying**<br>**amount** |
| Computer and other equipment | W | 8136437 | (6638485) | 1497952 | 7359682 | (5965593) | 1394089 |
| Furniture and fixture |  | 1849592 | (1657504) | 192088 | 1844600 | (1624216) | 220384 |
| Construction in- progress |  | - | - | - | - | - | - |
| Vehicles |  | 9101 | (9101) | - | 9101 | (9101) | - |
| Leasehold improvements |  | 3771628 | (3027624) | 744004 | 3527843 | (2348905) | 1178938 |
| Right-of-use assets |  | 13489812 | (5153435) | 8336377 | 13087225 | (5923550) | 7163675 |
|  | W | 27256570 | (16486149) | 10770421 | 25828451 | (15871365) | 9957086 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(2) Changes in property and equipment for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Computer and other equipment** | **Furniture**<br>**and fixture** | **Construction in progress** | **Vehicles** | **Leasehold**<br>**Improvements** | **Right-of-use assets** | **Total** |
| Beginning balance | W | 1394089 | 220384 | - | - | 1178938 | 7163675 | 9957086 |
| Rent Adjustment |  | - | - | - | - | - | 21913 | 21913 |
| Acquisitions/Capital expenditure |  | 769947 | 116510 | - | - | 182103 | 5815163 | 6883723 |
| Depreciation |  | (678634) | (142884) | - | - | (649593) | (4739765) | (6210876) |
| Disposition/Disposals/<br>Removals |  | - | (146) | - | - | - | - | (146) |
| Foreign exchange differences |  | 12550 | (1776) | - | - | 32556 | 75391 | 118721 |
| Ending balance | W | 1497952 | 192088 | - | - | 744004 | 8336377 | 10770421 |

---

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**8. Property and Equipment, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(2) Changes in property and equipment for the years ended December 31, 2025 and 2024 are as follows:,Continued.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Computer and other equipment** | **Furniture**<br>**and fixture** | **Construction in progress** | **Vehicles** | **Leasehold**<br>**Improvements** | **Right-of-use assets** | **Total** |
| Beginning balance | W | 1536102 | 266524 | 1209024 | 1328 | 516972 | 6620800 | 10150750 |
| Rent Adjustment |  | - | - | - | - | - | 131131 | 131131 |
| Acquisitions/Capital expenditure |  | 474620 | 130505 | - | - | 11059 | 4781383 | 5397567 |
| Depreciation |  | (649645) | (180149) | - | (1328) | (638774) | (4552951) | (6022847) |
| Disposition/Disposals/<br>Removals |  | - | (69) | - | - | - | - | (69) |
| Substitution |  | - | - | (1290528) | - | 1290528 | - | - |
| Foreign exchange differences |  | 33012 | 3573 | 81504 | - | (847) | 183312 | 300554 |
| Ending balance | W | 1394089 | 220384 | - | - | 1178938 | 7163675 | 9957086 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(3) Classification of depreciation expenses in the statements of comprehensive income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* | | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2024** |
| Cost of revenues | W | 1,923,810 | 1,749,867 |
| Selling, general and administrative expenses(\*) |  | 4,287,066 | 4,272,980 |
| | W | 6,210,876 | 6,022,847 |

---

(\*) The depreciation expenses recognized as the research and development included in selling, general and administrative expenses was W25,774 thousand and W33,388 thousand, respectively, for the years ended December 31, 2025 and 2024.

&nbsp;&nbsp;&nbsp;&nbsp;(4) As of December 31, 2025 and 2024, there are no property and equipment that are pledged as collateral for the Group's debts.

**9. Intangible Assets**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Details of intangible assets as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** |
|  |  | **Acquisition cost** | **Accumulated amortization**(\*) | **Carrying**<br>**amount** | **Acquisition**<br>**cost** | **Accumulated amortization**(\*) | **Carrying**<br>**amount** |
| Software | W | 18703053 | (15393040) | 3310013 | 16535808 | (14751681) | 1784127 |
| Patents |  | 2092881 | (1004003) | 1088878 | 1745310 | (863134) | 882176 |
| Other intangible assets |  | 9873018 | (7114976) | 2758042 | 10196274 | (5806029) | 4390245 |
|  | W  | 30668952 | (23512019) | 7156933 | 28477392 | (21420844) | 7056548 |

---

(\*) Accumulated amortization includes the amount of accumulated impairment loss.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**9. Intangible Assets, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(2) Changes in intangible assets for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
| *(In thousands of won)* |  | **Software** | **Patents** | **Other intangible assets** | **Total** |
| Beginning balance | W | 1784127 | 882176 | 4390245 | 7056548 |
| Acquisitions/Capital expenditure |  | 3202784 | 353193 | 1511103 | 5067080 |
| Amortization |  | (1676787) | (142032) | (2789435) | (4608254) |
| Disposals |  | - | (4459) | (67) | (4526) |
| Impairment(\*) |  | - | - | (52570) | (52570) |
| Miscellaneous |  | - | - | (314000) | (314000) |
| Foreign exchange differences |  | (111) | - | 12766 | 12655 |
| Ending balance | W | 3310013 | 1088878 | 2758042 | 7156933 |

---

(\*) The Group recognized W52,570 thousand of impairment loss as carrying amount of the other intangible assets exceeded recoverable amount as of December 31, 2025.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
| *(In thousands of won)* |  | **Software** | **Patents** | **Other intangible assets** | **Total** |
| Beginning balance | W | 2780930 | 624867 | 2964162 | 6369959 |
| Acquisitions/Capital expenditure |  | 378818 | 369387 | 3758303 | 4506508 |
| Amortization |  | (1381774) | (112078) | (1717116) | (3210968) |
| Disposals |  | - | - | (2839) | (2839) |
| Impairment(\*) |  | - | - | (614741) | (614741) |
| Foreign exchange differences |  | 6153 | - | 2476 | 8629 |
| Ending balance | W | 1784127 | 882176 | 4390245 | 7056548 |

---

(\*) The Group recognized W614,741 thousand of impairment loss as carrying amount of the other intangible assets exceeded recoverable amount as of December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Classification of amortization in the statements of comprehensive income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* | | **2025** | **2024** |
| Cost of revenues | &nbsp;&nbsp;W | 2,568,805 | 935,620 |
| Selling, general and administrative expenses(\*) | | 2,039,449 | 2,275,348 |
| | &nbsp;&nbsp;W | 4,608,254 | 3,210,968 |

---

(\*) The amortization recognized as the research and development included in selling, general and administrative expenses was W441,653 thousand and W528,382 thousand, respectively, for the years ended December 31, 2025 and 2024.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**10. Other non-current assets**

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* | | **December 31, 2025** | **December 31, 2024** |
| Prepaid Expenses(\*) | &nbsp;&nbsp;W | 14,645,888 | 8,131,937 |
| Others | | 555,121 | 319,506 |
| | &nbsp;&nbsp;W | 15,201,009 | 8,451,443 |

---

(\*) It consists of minimum guaranteed royalties and technical support fees.

**11. Employee Benefit** 

The expenses recognized in relation to defined contribution plan for the years ended December 31, 2025 and 2024 are W2,892,930 thousand and W2,654,583 thousand, respectively. In addition, expenses related to defined benefit plans amounting to W146,104 thousand are included in other non-current liabilities as of December 31, 2025.

**12. Commitments**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Group has entered into license agreements with various third-party game developers to secure exclusive rights to publish the games developed by the third-party developers. Upfront license fees paid are capitalized and recognized as other intangible assets and minimum guaranteed royalties are capitalized and recognized as other non-current assets. Purchase obligations for future acquisition related to the above agreements which were not recognized as liabilities as of December 31, 2025 and 2024 are W2,713,461 thousand and W4,835,726 thousand, respectively.

&nbsp;&nbsp;&nbsp;&nbsp; (2) As of the end of the current period, the Group is provided with payment guarantees of W110,400 thousand from Seoul Guarantee Insurance Co., Ltd. In connection with the performance of contracts, etc.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**13. Share Capital and Capital Surplus**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Details of common shares as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In won and in number of shares)* |  | **December 31, 2025** | **December 31, 2024** |
| Number of authorized shares  |  | 40000000 | 40000000 |
| Value per share | W | 500 | 500 |
| Number of shares issued  |  | 6948900 | 6948900 |
| Common shares | &nbsp;&nbsp;W  | 3474450000 | 3474450000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(2) Details of capital surplus as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* | | **December 31, 2025** | **December 31, 2024** |
| Additional paid-in capital | &nbsp;&nbsp;W | 25,292,211 | 25,292,211 |
| Other capital surplus  | | 1,687,150 | 1,687,150 |
| | &nbsp;&nbsp;W | 26,979,361 | 26,979,361 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(3)Details of other components of equity as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* | | **December 31, 2025** | **December 31, 2024** |
| Foreign currency translation adjustments  | W | 25,489,648 | 23,784,631 |
| Re-measurements of defined benefit liability  | | 33,398 | 15,920 |
| | W | 25,523,046 | 23,800,551 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(4)Details of retained earnings as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* | | **December 31, 2025** | **December 31, 2024** |
| Unappropriated retained earnings | W | 580,881,573 | 513,417,859 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(5) According to the Parent Company's Articles of Incorporation, the Parent Company may issue 2,000,000 shares of preferred stock without voting rights, and there are no preferred shares issued as of December 31, 2025.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**14. Revenue from Contracts with Customers**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Details of revenue from contracts with customers based on the service contract type and the timing of satisfaction of performance obligations are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | &nbsp;&nbsp;&nbsp;**2025** | **2024** |
| Service contract |  |  |  |
| Micro-transaction and subscription revenue | W | 481016060 | 409950571 |
| &nbsp;&nbsp;&nbsp;- Online Game |  | 76874527 | 61425023 |
| &nbsp;&nbsp;&nbsp;- Mobile Game |  | 404141533 | 348525548 |
| Royalties and license fees |  | 64557573 | 72714536 |
| &nbsp;&nbsp;&nbsp;- Online Game |  | 13464207 | 15564108 |
| &nbsp;&nbsp;&nbsp;- Mobile Game |  | 51093366 | 57150428 |
| Others revenue |  | 14973812 | 18180013 |
|  | W | 560547445 | 500845120 |
| Timing of satisfaction of performance obligations |  |  |  |
| At a point in time |  | 669722 | 111219 |
| &nbsp;&nbsp;Over time |  | 559877723 | 500733901 |
|  | &nbsp;&nbsp;W  | 560547445 | 500845120 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(2) Accounts receivable, incremental costs of obtaining a contract and contract liabilities related to contracts with customers as of December 31, 2025 and December 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025** | **December 31, 2024** |
| Accounts receivable | &nbsp;&nbsp;W | 56318021 | 81152458 |
| Incremental costs of obtaining a contract (Prepaid expenses) |  | 1825802 | 2385905 |
| Contract liabilities (Deferred revenue) |  | 21910221 | 29332594 |
| &nbsp;&nbsp;&nbsp;Micro-transaction and subscription revenue |  | 19787112 | 25290276 |
| &nbsp;&nbsp;&nbsp;Royalties and license fees |  | 2094611 | 4037318 |
| &nbsp;&nbsp;&nbsp;Others revenue |  | 28498 | 5000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(3) Contract liabilities

Revenue recognized in the current period that was included in the contract liability balance at the beginning of FY2025 was ₩26,760,732 thousand (FY2024 : ₩18,089,771 thousand). This consists of ₩25,290,276 thousand from paid content, ₩1,465,457 thousand from licenses, and ₩5,000 thousand from others (FY2024: ₩17,158,516 thousand from paid content, ₩641,255 thousand from licenses, and ₩290,000 thousand from others).

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**14. Revenue from Contracts with Customers, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(4) Transaction price allocated to unsatisfied performance obligations as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025** | **December 31, 2024** |
| Micro transaction and subscription revenue | &nbsp;&nbsp;W  | &nbsp;&nbsp;19787112 | &nbsp;&nbsp;25290276 |
| &nbsp;&nbsp;&nbsp;- Online Game |  | &nbsp;&nbsp;11691196 | &nbsp;&nbsp;10822217 |
| &nbsp;&nbsp;&nbsp;- Mobile Game |  | &nbsp;&nbsp;8095916 | &nbsp;&nbsp;14468059 |
| Royalties and license fees |  | &nbsp;&nbsp;2094611 | 4037318 |
| &nbsp;&nbsp;&nbsp;- Online Game |  | &nbsp;&nbsp;100381 | 448348 |
| &nbsp;&nbsp;&nbsp;- Mobile Game |  | &nbsp;&nbsp;1994230 | 3588970 |
| Others revenue |  | &nbsp;&nbsp;28498 | 5000 |
|  | W | &nbsp;&nbsp;21910221 | 29332594 |

---

The Group's management expects to recognize 98.1% (W21,500,469 thousand) of the transaction price allocated to contracts that have not been performed as of December 31, 2025 as revenue within 12 months. The remaining 1.9% (W409,752 thousand) is expected to be recognized as revenue thereafter. The amounts disclosed above do not include variable consideration which is constrained.

(5) Details of incremental costs of obtaining a contract recognized as assets as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025** | **December 31, 2024** |
| Incremental costs of obtaining a contract recognized as at the reporting period-end | W | 1825802 | 2385905 |
| Incremental costs of obtaining a contract recognized as cost of revenues |  | 2385905 | 1556590 |

---

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**15. Classification of expenses by nature**

Details of classification of expenses by nature for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | &nbsp;&nbsp;&nbsp;**2025** | **2024** |
| Fees and commissions | W | 346781636 | 293302275 |
| Bad debt expenses |  | 752216 | 588818 |
| Advertising expenses |  | 44737519 | 38731094 |
| Salaries |  | 55455370 | 50091764 |
| Outsourcing expenses |  | 7415128 | 9214740 |
| Rent |  | 1610384 | 1379987 |
| Employee benefits |  | 5056647 | 4538213 |
| Post-employment benefits |  | 3691970 | 3021659 |
| Depreciation |  | 6210876 | 6022847 |
| Amortization |  | 4608254 | 3210968 |
| Others |  | 5197943 | 4554065 |
|  | &nbsp;&nbsp;W  | 481517943 | 414656430 |

---

Total expenses consist of cost of sales, selling, general and administrative expenses.

**16. Selling, General and Administrative Expenses**

Details of the selling, general and administrative expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | &nbsp;&nbsp;&nbsp;**2025** | **2024** |
| Fees and commissions | W | 17914109 | 14613156 |
| Bad debt expenses |  | 752216 | 588818 |
| Advertising expenses |  | 44737519 | 38731094 |
| Salaries |  | 26562266 | 22990995 |
| Outsourcing expenses |  | 2366202 | 1952620 |
| Rent |  | 888668 | 773168 |
| Employee benefits |  | 2804397 | 2384507 |
| Post-employment benefits |  | 1327110 | 1180912 |
| Depreciation |  | 4261292 | 4239592 |
| Amortization |  | 1597796 | 1746966 |
| Research and development |  | 10326126 | 15262000 |
| Others |  | 3712676 | 3289536 |
|  | &nbsp;&nbsp;W  | 117250377 | 107753364 |

---

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**17. Finance Income and Costs**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Details of finance income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | &nbsp;&nbsp;&nbsp;**2025** | **2024** |
| **Finance income** |  |  |  |
| &nbsp;&nbsp;Interest income | W | 15822058 | 17058776 |
| &nbsp;&nbsp;Unrealized foreign currency gain |  | 2323012 | 3579314 |
| &nbsp;&nbsp;Gain on foreign currency transactions |  | 6453921 | 10250899 |
|  | &nbsp;&nbsp;W  | 24598991 | 30888989 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(2) Details of finance costs for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | &nbsp;&nbsp;&nbsp;**2025** | **2024** |
| **Finance costs** |  |  |  |
| &nbsp;&nbsp;Interest expense | W | 281809 | 135377 |
| &nbsp;&nbsp;Unrealized foreign currency loss |  | 4520987 | 2025902 |
| &nbsp;&nbsp;Loss on foreign currency transactions |  | 6253439 | 7764391 |
|  | &nbsp;&nbsp;W  | 11056235 | 9925670 |

---

**18. Other Non-Operating Income and Expenses**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Details of other non-operating income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* | | &nbsp;&nbsp;&nbsp;**2025** | **2024** |
| Gain on disposal of property and equipment | W | 4,107 | 8,085 |
| Miscellaneous gain | | 308,658 | 780,813 |
| | &nbsp;&nbsp;W  | 312,765 | 788,898 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(2) Details of other non-operating expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | &nbsp;&nbsp;&nbsp;**2025** | **2024** |
| Loss on disposal of property and equipment | W | 146 | 6112 |
| Loss on disposal of intangible assets |  | 4459 | - |
| Impairment loss on intangible assets |  | 52570 | 614741 |
| Impairment loss on other non-current assets |  | 1876212 | 962025 |
| Miscellaneous loss |  | 12973 | 10995 |
|  | W | 1946360 | 1593873 |

---

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**19. Income tax expense** 

&nbsp;&nbsp;&nbsp;&nbsp;(1) Details of income tax expense for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | &nbsp;&nbsp;&nbsp;**2025** | **2024** |
| Current tax expense |  |  |  |
| &nbsp;&nbsp;&nbsp;Current year | W | 24778320 | 22198761 |
| Deferred tax expense |  |  |  |
| &nbsp;&nbsp;&nbsp;Changes in net deferred tax assets |  | (1148986) | (753935) |
| Income tax expense  | &nbsp;&nbsp;W  | 23629334 | 21444826 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(2) The differences between the tax expense on the Group's profit before tax and the amount that would arise using the statutory tax rates applicable to profits of the entities are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | &nbsp;&nbsp;&nbsp;**2025** | **2024** |
| Profit before income tax expense | W | 90938663 | 106347034 |
| Income tax using the statutory tax rate of each country |  | 18480048 | 19749419 |
| Adjustments: |  |  |  |
| &nbsp;&nbsp;Expenses not deductible for tax purposes |  | 333220 | 481370 |
| &nbsp;&nbsp;Non taxable income |  | (676499) | (349774) |
| &nbsp;&nbsp;Foreign tax payment |  | 5807422 | 6321917 |
| &nbsp;&nbsp;Utilization of previously unrecognized tax losses |  | (87609) | (298451) |
| &nbsp;&nbsp;Tax credit |  | (1820981) | (1413463) |
| &nbsp;&nbsp;Corporate tax on unappropriated earnings |  | - | 94943 |
| Changes in deferred tax liabilities related to investment in subsidiaries |  | 599509 | (1058223) |
| &nbsp;&nbsp;Others |  | 994224 | (2082912) |
| Total Adjustment |  | 5149286 | 1695407 |
| Income tax expense | W | 23629334 | 21444826 |
| Effective tax rate |  | 26% | 20% |

---

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**19. Income tax expense, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(3) Details of the changes in deferred tax assets (liabilities) for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| *(In thousands of won)* |  | **Beginning** <br>**balance** | **Increase**<br>**(Decrease)** | **Ending**<br>**balance** | **Beginning** <br>**balance** | **Increase**<br>**(Decrease)** | **Ending**<br>**balance** |
| &nbsp;&nbsp;Property and equipment | W | 177324  | (104004) | 73320  | 51166 | 126158  | 177324  |
| &nbsp;&nbsp;Intangible assets |  | 82574  | 127828  | 210402  | 665063 | (582489) | 82574  |
| &nbsp;&nbsp;Other non-current assets |  | 14096  | 28809  | 42905  | 24999 | (10903) | 14096  |
| &nbsp;&nbsp;Accounts Payable |  | 1769785  | 410744  | 2180529  | 1518055 | 251730  | 1769785  |
| &nbsp;&nbsp;Accrued expenses |  | 311585  | 167030  | 478615  | 282091 | 29494  | 311585  |
| &nbsp;&nbsp;Deferred revenue |  | 82573  | 402937  | 485510  | 355434 | (272861) | 82573  |
| &nbsp;&nbsp;Allowance for doubtful account | &nbsp;&nbsp;Allowance for doubtful account | 57036  | 32815  | 89851  | 1178980 | (1121944) | 57036 |
| &nbsp;&nbsp;Other non-current liabilities | &nbsp;&nbsp;Other non-current liabilities | 77813  | 7211  | 85024  | 81970 | (4157) | 77813 |
| &nbsp;&nbsp;Lease |  | (16073) | 2366  | (13707) | (38046) | 21973  | (16073) |
| &nbsp;&nbsp;Investment in subsidiaries |  | (1198385) | (537967) | (1736352) | (2368565) | 1170180  | (1198385) |
| &nbsp;&nbsp;Others |  | (261285) | 593938 | 332653 | 881670 | (1142955) | (261285) |
| Subtotal |  | 1097043 | 1131707 | 2228750 | 2632817 | (1535774) | 1097043  |
| Deferred tax due to carry-forward losses |  | 1149059  | (862428) | 286631  | 701138 | 447921  | 1149059 |
| Deferred tax due to tax credit carry-forward  |  | 2077705  | 879707  | 2957412  | 235916 | 1841789  | 2077705 |
| Deferred tax assets(\*)  | W | 5617488  | 1591657 | 7209145 | 5952133 | (334645) | 5617488  |
| Deferred tax liabilities  |  | (1293681) | (442671) | (1736352) | (2382262) | 1088581  | (1293681) |

---

(\*) The future realizability of deferred tax assets is assessed by taking into consideration various factors such as each subsidiary's performance, the overall economic environment and industry outlook, expected future earnings, and deductible period of tax credit carry-forward and carry-forward losses. The Group periodically reviews these matters, and has recognized deferred tax assets related to temporary differences, tax loss carryforward and tax credit carryforwards, based on the likelihood of each subsidiary's future taxable income as at December 31, 2025. This amount may change if the estimate for future taxable income changes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Details of unused tax loss carryforwards and unused tax credit carry-forwards that are not recognized as deferred income tax assets as of December 31, 2025 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  |  |  |
| **Year of expiration** |  | **Unused loss carryforwards** | **Unused tax credit carryforwards** |
| &nbsp;&nbsp;&nbsp;2026 |  | 2002452 | 175371 |
| &nbsp;&nbsp;&nbsp;2027 |  | 352039 | 202218 |
| &nbsp;&nbsp;&nbsp;2028 |  | 2134171 | 520368 |
| &nbsp;&nbsp;&nbsp;2029 |  | 347955 | 402380 |
| &nbsp;&nbsp;&nbsp;2030 |  | 220510 | 412486 |
| After 2030 |  | 11091460 | 541141 |
| Total | W | 16148587 | 2253964 |

---

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**19. Income tax expense, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)As of December 31, 2025 the Group has not recognized deferred tax assets and deferred tax liabilities for deductible temporary differences of ₩29,704,307 thousand (December 31, 2024: ₩22,504,425 thousand) and taxable temporary differences of ₩108,844,768 thousand (December 31, 2024: ₩102,570,411 thousand) associated with investments in subsidiaries, etc., as it is not probable that these will reverse in the foreseeable future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)The gross balances of deferred tax assets and liabilities for the years ended December 31, 2025 and 2024, is as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2024** |
| Deferred tax assets |  |  |  |
| &nbsp;&nbsp;&nbsp;- Deferred tax assets to be recovered after more than 12 months | &nbsp;&nbsp;W | &nbsp;&nbsp;1772848 | &nbsp;&nbsp;2783985 |
| &nbsp;&nbsp;&nbsp;- Deferred tax assets to be recovered within 12 months |  | &nbsp;&nbsp;7671394 | &nbsp;&nbsp;5725147 |
| &nbsp;&nbsp;Sub-total |  | &nbsp;&nbsp;9444242 | &nbsp;&nbsp;8509132 |
| Deferred tax liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;- Deferred tax liabilities to be recovered after more than 12 months |  | &nbsp;&nbsp;(870902) | &nbsp;&nbsp;(1018806) |
| &nbsp;&nbsp;&nbsp;&nbsp;- Deferred tax liabilities to be recovered within 12 months |  | &nbsp;&nbsp;(3100547) | &nbsp;&nbsp;(3166519) |
| &nbsp;&nbsp;Sub-total |  | &nbsp;&nbsp;(3971449) | &nbsp;&nbsp;(4185325) |
| Deferred tax assets (liabilities), net | &nbsp;&nbsp;W | &nbsp;&nbsp;5472793 | &nbsp;&nbsp;4323807 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)The impact of the global minimum tax

Under the Pillar Two legislation, the Group is liable to pay top-up tax for the difference between the GloBE effective tax rate and the minimum tax rate of 15% for each jurisdiction where its constituent entities are located. For all entities within the Group, except for Gravity Game Vision Limited operating in Hong Kong, the GloBE effective tax rate in their respective jurisdictions exceeds 15%. In the case of Hong Kong, the Group has recognized KRW 724,851 thousand as current income tax expense for Pillar Two income taxes in accordance with the local Qualifying Domestic Minimum Top-up Tax (QDMTT), and has applied the exception to the recognition and disclosure of related deferred tax assets and liabilities.

**20. Earnings per share**

Basic earnings per share is calculated by dividing the profit attributable to owners of the Parent by the weighted average number of common shares outstanding each year.

&nbsp;&nbsp;&nbsp;&nbsp;(1)Basic earnings per share

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands won and in number of shares)* |  | &nbsp;&nbsp;&nbsp;**2025** | **2024** |
| Profit attributable to owners of the Parent | W | 67463714 | 84919277 |
| Weighted average outstanding shares of common shares |  | 6948900 | 6948900 |
| Basic earnings per share(in won) | &nbsp;&nbsp;W  | 9709 | 12221 |

---

**20. Earnings per share, Continued**

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

&nbsp;&nbsp;&nbsp;&nbsp;(2) Diluted earnings per share

As of and for the years ended December 31, 2025 and 2024, the Parent Company does not have outstanding dilutive potential ordinary shares. Accordingly, the diluted earnings per share for the years ended December 31, 2025 and 2024 are the same as the basic earnings per share.

**21. Cash flow information**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Adjustments for calculating cash generated from operations for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | &nbsp;&nbsp;&nbsp;**2025** | **2024** |
| Adjustments for: |  |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation | W | 6210876 | 6022847 |
| &nbsp;&nbsp;&nbsp;Amortization  |  | 4608254 | 3210968 |
| &nbsp;&nbsp;&nbsp;Bad debt expense |  | 752216 | 588818 |
| &nbsp;&nbsp;&nbsp;Unrealized foreign currency loss |  | 4520987 | 2025902 |
| &nbsp;&nbsp;&nbsp;Interest expense |  | 281809 | 135377 |
| &nbsp;&nbsp;&nbsp;Loss on disposal of property and equipment  |  | 146 | 6112 |
| &nbsp;&nbsp;&nbsp;Loss on disposal of intangible assets |  | 4459 | - |
| &nbsp;&nbsp;&nbsp;Impairment loss on intangible asset |  | 52570 | 614741 |
| &nbsp;&nbsp;&nbsp;Impairment loss on other non-current assets |  | 1876212 | 962025 |
| &nbsp;&nbsp;&nbsp;Retirement benefit expenses |  | 352478 | 127554 |
| &nbsp;&nbsp;&nbsp;Income tax expense |  | 23629334 | 21444826 |
| &nbsp;&nbsp;&nbsp;Unrealized foreign currency gain |  | (2323012) | (3579314) |
| &nbsp;&nbsp;&nbsp;Gain on disposal of property and equipment |  | (4107) | (8085) |
| &nbsp;&nbsp;&nbsp;Interest income |  | (15822058) | (17058776) |
|  | W | 24140164 | 14492995 |

---

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**21. Cash flow information, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(2) Changes in assets and liabilities arising from operating activities for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2024** |
| Accounts receivable | W | 22169171 | (1886253) |
| Other receivables |  | (1249445) | 2747905 |
| Prepaid expenses |  | (5524105) | (4492818) |
| Other current assets |  | 102544 | (123527) |
| Other non-current assets |  | (3956325) | (2318065) |
| Accounts payable |  | (9509079) | (2879054) |
| Deferred revenue |  | (7616862) | 5983805 |
| Withholding |  | 276014 | (1546052) |
| Accrued expenses |  | (64789) | 225700 |
| Long-term deferred revenue |  | (3409) | 467191 |
|  | W | (5376285) | (3821168) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a)Significant non-cash transactions for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | &nbsp;&nbsp;&nbsp;**2025** | **2024** |
| Reclassification of prepayment to intangible assets | W | 129798 | 212220 |
| Increase in accounts payable relating to the acquisition of software |  | 2046400 | 292480 |
| Increase in accounts payable relating to the acquisition of other intangible assets |  | 724639 | 2556979 |
| Increase in accounts payable relating to the acquisition of other non-current assets |  | 4450200 | - |
| Acquisition of right-of-use assets |  | 5837076 | 4912514 |

---

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**21. Cash flow information, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(4) Changes in liabilities arising from financing activities for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | &nbsp;&nbsp;**2024** |
| Beginning of the year | W | 7121523 | 6562398 |
| Cash flows used in financial activities – payment of lease liabilities |  | (4514664) | (4525288) |
| Cash flows used in operating activities – Interest paid |  | (271969) | (130027) |
| Non-cash transactions: |  |  |  |
| &nbsp;&nbsp;&nbsp;Acquisitions – leases |  | 5628116 | 4912514 |
| &nbsp;&nbsp;&nbsp;Interest expense |  | 271969 | 130027 |
| &nbsp;&nbsp;&nbsp;Others |  | - | (17059) |
| Translation difference |  | 76585 | 188958 |
| Ending of the year | &nbsp;&nbsp;W | 8311560 | 7121523 |

---

**22. Leases**

The Group leases offices, vehicles and others. The leases typically run for a period of 1~ 5 years with an option to renew or terminate the lease after that date. There are no restrictions or covenants imposed to leases, but the lease assets are not provided as collateral for borrowings.

&nbsp;&nbsp;&nbsp;&nbsp;(1)Details of right-of-use assets and lease liabilities recognized in the consolidated statements of financial position as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025** | &nbsp;&nbsp;**December 31, 2024** |
| Right-of-use assets(\*1) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Offices | W | 8262427 | 6250151 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vehicles |  | - | 121449 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | 73950 | 792075 |
|  | W | 8336377 | 7163675 |
| Lease liabilities(\*2) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current |  | 3588778 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3179423  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-current |  | 4722782 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3942100  |
|  | W | 8311560 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7121523 |

---

(\*1) Right-of-use assets are included in the 'Property and equipment' in the consolidated statement of financial position.

(\*2) Lease liabilities are included in the 'Other current liabilities' and 'Other non-current liabilities' in the consolidated statement of financial position.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**22. Leases, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(2) Changes in right-of-use assets for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Offices** | **Vehicles** | **Others** | **Total** |
| Balance as of January 1, 2025 | W | 6250151 | 121449 | 792075 | 7163675 |
| Depreciation |  | (3376491) | (121449) | (1241825) | (4739765) |
| Reassessment  |  | 21913 | - | - | 21913 |
| Acquisitions |  | 5056574 | - | 758589 | 5815163 |
| Translation difference |  | 310280 | - | (234889) | 75391 |
| Balance as of December 31, 2025 | W | 8262427 | - | 73950 | 8336377 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Offices** | **Vehicles** | **Others** | **Total** |
| Balance as of January 1, 2024 | W | 4720419  | 367030  | 1533351  | 6620800  |
| Depreciation |  | (3209666) | (245581) | (1097704) | (4552951) |
| Reassessment |  | 7470  | - | 123661  | 131131  |
| Acquisitions |  | 4574637  | - | 206746  | 4781383  |
| Translation difference |  | 157291 | - | 26021  | 183312  |
| Balance as of December 31, 2024 | W | 6250151  | 121449 | 792075  | 7163675  |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a)Details of amounts recognized in the consolidated statements of comprehensive income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2024** |
| Interest expense relating to lease liabilities (included in finance cost) | W | 271969 | 130027 |
| Expense relating to short-term leases |  | 150174 | 50460 |
| Expense relating to leases of low-value assets excluding short-term leases |  | 44930 | 47082 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(b)Details of amounts recognized in the consolidated statement of cash flows for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | &nbsp;&nbsp;**2024** |
| Total cash outflows of leases | W | 4981737 | 4752857 |

---

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**23. Financial Risk Management**

The Group's operating activities expose itself to a variety of financial risks: market risk, credit risk and liquidity risk from which the Group's risk management program focuses on minimizing any adverse effects on its financial performance. The Group operates financial risk management policies and programs that closely monitor and respond to each risk factor.

&nbsp;&nbsp;&nbsp;&nbsp;(1)Capital Risk Management

The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern, so the Group can continue to provide returns and benefits for shareholders and to maintain an optimal capital structure to reduce the cost of capital. The Group monitors capital on the basis of the debt ratio. This ratio is calculated as total debt divided by total capital. The debt ratios as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025** | **December 31, 2024** |
| Total Liabilities | &nbsp;&nbsp;W | 105295102 | 118095483 |
| Total Equity |  | 637366761 | 568363459 |
| Debt ratio |  | 17% | 21% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(2) Market Risk

&nbsp;&nbsp;&nbsp;&nbsp;(a) Foreign exchange risk

The Group is exposed to foreign exchange risk arising from royalty revenues and commission payment primarily with respect to the US dollar etc. The Group's financial assets and liabilities are exposed to foreign currency risk as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won, in foreign currencies)* | *(In thousands of won, in foreign currencies)* | *(In thousands of won, in foreign currencies)* | *(In thousands of won, in foreign currencies)* | *(In thousands of won, in foreign currencies)* | *(In thousands of won, in foreign currencies)* |
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Assets in foreign** <br>**currency** | **Liabilities in foreign currency** |  | **Assets in** <br>**Korean Won** | **Liabilities in Korean Won** |
| USD | 74570304 | 18911133 |  | 107126784 | 27137706 |
| JPY | 309989470 | 44698337 |  | 2844559 | 410165 |
| EUR | 27179 | 45155 |  | 45815 | 76139 |
| IDR | 9851056 | 711971835 |  | 843 | 61201 |
| THB | 21131 | -  |  | 964 | -  |
| VND | 6026400 | -  |  | 329 | -  |
| HKD | 197522 | -  |  | 36617 | -  |
| MYR | -  | 24358 |  | -  | 8607 |
| GBP | -  | 7182 |  | -  | 13888 |
|  |  |  | W | 110055911 | 27707706 |

---

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**23. Financial Risk Management, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(2) Market Risk, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(a) Foreign exchange risk

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won, in foreign currencies)* | *(In thousands of won, in foreign currencies)* | *(In thousands of won, in foreign currencies)* | *(In thousands of won, in foreign currencies)* | *(In thousands of won, in foreign currencies)* | *(In thousands of won, in foreign currencies)* |
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Assets in foreign** <br>**currency** | **Liabilities in foreign currency** |  | **Assets in** <br>**Korean Won** | **Liabilities in Korean Won** |
| USD | 70136599 | 29286354 |  | 103021478 | 43009052 |
| JPY | 496929791 | 56100772 |  | 4653649 | 525373 |
| EUR | 27925 | 32910 |  | 42689 | 50310 |
| IDR | 9851056 | 522083448 |  | 897 | 47558 |
| THB | 21131 | -  |  | 909 | -  |
| VND | 6026400 | -  |  | 348 | -  |
| HKD | 141271 | -  |  | 26727 | -  |
|  |  |  | W  | 107746697 | 43632293 |

---

The Group measures foreign exchange risk at the exchange rate of 10% for each foreign currency, and the rate of change reflects the management's assessment of the risk of exchange rate fluctuation that can be reasonably experienced. The effects of changes in foreign currency exchange rate on profit before income tax for the years ended of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2025** | **2024** | **2024** |
|  |  | **Increased by 10%** | **Decreased by 10%** | **Increased by 10%** | **Decreased by 10%** |
| USD | W | 7998908  | (7998908) | 6001243  | (6001243) |
| JPY |  | 243439  | (243439) | 412828  | (412828) |
| Others |  | (7527) | 7527  | (2630) | 2630  |
| Total | W | 8234820 | (8234820) | 6411441  | (6411441) |

---

The sensitivity analysis is based on monetary assets and liabilities denominated in foreign currencies other than the functional currency at the end of the reporting period.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Interest rate risk

There are no borrowings under variable interest rate conditions as of December 31, 2025 and 2024.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Price risk

There are no assets and liabilities exposed to price risk as of December 31, 2025 and 2024.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**23. Financial Risk Management, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(3) Credit Risk

Credit risk arises from normal trading and investing activities and occurs when a customer or a counterparty fails to comply with the terms of the contract. In order to manage these credit risks, the Group regularly evaluates the creditworthiness of customers based on their financial condition, past experiences and other factors.

The carrying amounts of financial assets represent their maximum exposure to credit risk. The maximum exposure to credit risk of the Group as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025** | **December 31, 2024** |
| Cash and cash equivalents | &nbsp;&nbsp;W | 203599414 | 228898026 |
| Short-term financial instruments |  | 415033514 | 324304040 |
| Accounts receivable, net |  | 56318021 | 81152458 |
| Other receivables, net |  | 531784 | 15557 |
| Other current financial assets |  | 4332769 | 6601519 |
| Other non-current financial assets |  | 3811881 | 1766588 |
|  | &nbsp;&nbsp;W | 683627383 | 642738188 |

---

Cash and cash equivalents and short-term financial instruments are deposited in financial institutions with strong credit ratings. Accounts receivable is mainly due from payment processing companies and platform service providers, which the Group believes have low levels of credit risk.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Liquidity Risk

Liquidity risk management includes the maintenance of sufficient cash and marketable securities, the availability of funds from appropriately committed credit lines, and the ability to settle market positions. The cash flows included in the maturity classification, based on the remaining period to the contractual maturity date, are undiscounted expected cash outflows. The amount due within 12 months is the same as the carrying amount since the effect of the discount is not material. The following table summarizes the financial liabilities of the Group by maturity according to the remaining period from the end of the reporting period to the contractual maturity date.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Carrying**<br>**value** | **Less than**<br>**3 months** | **3 months to 1 year** | **1 to 2 years** | **2 to 4 years** | **Total** |
| Accounts payable | W | 56684091 | 55482961 | 578385 | 622745 | -  | 56684091 |
| Accrued expense |  | 385363 | 385363 | -  | -  | -  | 385363 |
| Other liabilities (\*) |  | 8311560 | 1168483 | 2616070 | 2620202 | 2268795 | 8673550 |
|  | W  | 65381014 | 57036807 | 3194455 | 3242947 | 2268795 | 65743004 |

---

(\*) Other liabilities as of December 31, 2025 consist of lease liabilities.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**23. Financial Risk Management, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(4) Liquidity Risk, Continued

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Carrying**<br>**value** | **Less than**<br>**3 months** | **3 months to 1 year** | **1 to 2 years** | **2 to 4 years** | **Total** |
| Accounts payable | W | 63548026 | 63152918 | 175000 | 220108 | - | 63548026 |
| Accrued expense |  | 312563 | 312563 | - | - | - | 312563 |
| Other liabilities (\*) |  | 7121523 | 1045979 | 2303030 | 1849686 | 2249389 | 7448084 |
|  | W  | 70982112 | 64511460 | 2478030 | 2069794 | 2249389 | 71308673 |

---

(\*) Other liabilities as of December 31, 2024 consist of lease liabilities.

**24. Segment information**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Operating segments

The Group determines its operating segments by establishing strategic decisions. Chief operating decision maker ("CODM") reviews operating profit by each segment in order to make decisions regarding the resources to be allocated to the segment and to evaluate the performance of the segment.

The reportable segments of the Group are in line with the organizational structure and the review of operations by the CEO, who is the Chief operating decision maker, and they include mobile, online, and others.

The Group assesses the performance of its operating segments based on its operating profit or loss, which does not differ from operating profit reported on the consolidated statement of comprehensive income except for inter-segment transactions. The segment information for the years ended December 31, 2025 and 2024 is as follows.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| <br>*(In thousands of won)* |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Online** | **Mobile** | **Others** | **Total** | **Inter-segment**<br>**eliminations(\*)**  | **Total** |
| Revenue | W | 107418488 | 537769535 | 32004893 | 677192916 | - | - |
| Intersegment Revenue |  | 17079754 | 82534636 | 17031081 | 116645471 | (116645471) | - |
| External Revenue |  | 90338734 | 455234899 | 14973812 | 560547445 | - | 560547445 |
| &nbsp;&nbsp;Depreciation/<br>amortization |  | 2370951 | 3165330 | 5282849 | 10819130 | - | 10819130 |
| Operating profit |  | 30760250 | 54351513 | (6082261) | 79029502 | - | 79029502 |

---

(\*) The Group reflects inter-segment eliminations as adjustments.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**24. Segment information, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Operating segments, Continued

Other profit or loss items that do not constitute operating profit (loss) are not separately disclosed as they are not reviewed by the chief operating decision maker by operating segment.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| <br>*(In thousands of won)* |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Online** | **Mobile** | **Others** | **Total** | **Inter-segment**<br>**eliminations(\*)**  | **Total** |
| Revenue | W | 90831926 | 465026162 | 23962894 | 579820982 | - | - |
| Intersegment Revenue |  | 13842795 | 59350186 | 5782881 | 78975862 | (78975862) | - |
| External Revenue |  | 76989131 | 405675976 | 18180013 | 500845120 | - | 500845120 |
| &nbsp;&nbsp;Depreciation/<br>amortization |  | 1725385 | 2699388 | 4809042 | 9233815 | - | 9233815 |
| Operating profit |  | 34536608 | 55603941 | (3951859) | 86188690 | - | 86188690 |

---

(\*) The Group reflects inter-segment eliminations as adjustments.

Other profit or loss items that do not constitute operating profit (loss) are not separately disclosed as they are not reviewed by the chief operating decision maker by operating segment.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Revenue from external customers by country for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025(\*)** | **2024(\*)** |
| Taiwan | W | 133721000 | 114409543 |
| Korea |  | 38865080 | 53142360 |
| Thailand |  | 53395034 | 61781458 |
| Japan |  | 27643837 | 18856828 |
| United States of America |  | 52691155 | 34652880 |
| Philippines |  | 52682655 | 58926548 |
| Indonesia |  | 85061358 | 32373482 |
| Malaysia |  | 18001413 | 26360680 |
| Brazil |  | 23475213 | 26433674 |
| Hong Kong |  | 20159064 | 17255442 |
| Other |  | 54851636 | 56652225 |
|  |  | &nbsp;&nbsp;560547445 | &nbsp;&nbsp;500845120 |

---

(\*) Revenue was attributed to the country based on the customer's location and royalty revenue was attributed to the country where the end user's payment was made.

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**24. Segment information, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(3) Non-current assets by geographical regions as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025(\*)** | **December 31, 2024(\*)** |
| Korea | W | 25904333 | 18990332 |
| Overseas |  | 7224030 | 6474745 |
| Total | W | 33128363 | 25465077 |

---

(\*) The amounts are exclusive of financial assets and deferred tax assets.

&nbsp;&nbsp;&nbsp;&nbsp;(4) There was no customer who represents more than 10% of revenue in the mobile segment for the year ended December 31, 2024 and December 31, 2025

**25. Related Party Transactions**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Related parties of the Group include entities and individuals capable of exercising control or significant influence over the Group. Related parties include Gung Ho Online Entertainment, Inc. (the controlling shareholder with 59.31% of common shares), its subsidiaries, management and their immediate families.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Account balances with related party

Balances of receivables and payables with related party as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* | *(In thousands of won)* |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| **Related party** | **Name of entity** |  | **Receivables** | **Payables** | **Receivables** | **Payables** |
| Parent Company | GungHo Online Entertainment, Inc. | W | 1536467 | 2700 | 3333489 | 2755 |
| Other | Gungho Online Entertainment America. |  | 1016 | 773 | 573 | 97210 |
|  | Total | W | 1537483 | 3473 | 3334062 | 99965 |

---

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

**25. Related Party Transactions, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(3) Transactions with related parties

The details of transactions with related party for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* | *(In thousands of won)* |  | **2025** | **2025** | **2025** |
|  |  |  | **Revenues** | **Revenues** | **Revenues** |
| **Related party** | **Name of entity** |  | **Royalty** | **Commission** | **Other** |
| Parent company | GungHo Online Entertainment, Inc. | W | 21346669 | 483823 | 149808 |
| Other | GungHo Online Entertainment America. |  | 7241 | - | - |
|  |  | W | 21353910 | 483823 | 149808 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In thousands of won)* | *(In thousands of won)* |  | **2025** | **2025** |
|  |  |  | **Purchases** | **Purchases** |
| **Related party** | **Name of entity** |  | **Royalty** | **Other** |
| Parent company | GungHo Online Entertainment, Inc. | W | - | 16764 |
| Other | GungHo Online Entertainment America. |  | 10093 | - |
|  |  | W | 10093 | 16764 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* | *(In thousands of won)* |  | **2024** | **2024** | **2024** |
|  |  |  | **Revenues** | **Revenues** | **Revenues** |
| **Related party** | **Name of entity** |  | **Royalty** | **Commission** | **Other** |
| Parent company | GungHo Online Entertainment, Inc. | W | 16550535 | 682115 | - |
| Other | GungHo Online Entertainment America |  | 559 | - | - |
|  |  | W | 16551094 | 682115 | - |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In thousands of won)* | *(In thousands of won)* |  | **2024** | **2024** |
|  |  |  | **Purchases** | **Purchases** |
| **Related party** | **Name of entity** |  | **Royalty** | **Other** |
| Parent company | GungHo Online Entertainment, Inc. | W | - | 15946 |
| Other | GungHo Online Entertainment America. |  | 92326 | 92322 |
|  |  | W | 92326 | 108268 |

---

**25. Related Party Transactions, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(4) Other transactions with related parties

------

GRAVITY CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024

No financing transactions were made with related parties for the years ended December 31, 2025 and 2024.

&nbsp;&nbsp;&nbsp;&nbsp;(5) Key management personnel compensation

The compensation given to key management personnel (registered directors) for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* | | &nbsp;&nbsp;&nbsp;**2025** | **2024** |
| Salaries | &nbsp;&nbsp;W | 2,658,549 | 2,264,113 |

---

## Exhibit 99.2

**GRAVITY CO., LTD.**

Separate Financial Statements

**For the Years Ended December 31, 2025 and 2024&nbsp;&nbsp;&nbsp;&nbsp;**

(With Independent Auditor's Report Thereon)**&nbsp;&nbsp;&nbsp;&nbsp;**

------

Contents

**Page**

**Independent Auditor's Report**&nbsp;&nbsp;&nbsp;&nbsp;1

Separate Statements of Financial Position&nbsp;&nbsp;&nbsp;&nbsp;3

Separate Statements of Comprehensive Income&nbsp;&nbsp;&nbsp;&nbsp;5

Separate Statements of Changes in Equity&nbsp;&nbsp;&nbsp;&nbsp;6

Separate Statements of Cash Flows&nbsp;&nbsp;&nbsp;&nbsp;7

Notes to the Separate Financial Statements&nbsp;&nbsp;&nbsp;&nbsp;8

------

Independent Auditor's Report

<u>English Translation of a Report Originally Issued in Korean</u>

To the Board of Directors and Shareholders of Gravity Co., Ltd.:

**Opinion**

We have audited the separate financial statements of Gravity Co., Ltd ("the Company"), which comprise the separate statements of financial position as at December 31, 2025 and 2024, and the separate statement of comprehensive income, separate statements of changes in equity and separate statements of cash flows for the years then ended, and notes to the separate financial statements, including material accounting policy information.

In our opinion, the accompanying separate financial statements present fairly, in all material respects, the separate financial position of the Company as at December 31, 2025 and 2024, and its separate financial performance and its separate cash flows for the years then ended in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS).

**Basis for Opinion**

We conducted our audits in accordance with Korean Standards on Auditing. Our responsibilities under those standards are further described in the *Auditor's Responsibilities for the Audit of the Separate Financial Statements* section of our report. We are independent of the Company in accordance with the ethical requirements of the Republic of Korea that are relevant to our audit of the separate financial statements and we have fulfilled our other ethical responsibilities in accordance with the ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

**Other Matter**

Auditing standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to audit such separate financial statements may differ from those generally accepted and applied in other countries.

**Responsibilities of Management and Those Charged with Governance for the Separate Financial Statements**

Management is responsible for the preparation and fair presentation of the separate financial statements in accordance with Korean IFRS, and for such internal control as management determines is necessary to enable the preparation of separate financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the separate financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

**Auditor's Responsibilities for the Audit of the Separate Financial Statements**

Our objectives are to obtain reasonable assurance about whether the separate financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Korean Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these separate financial statements.

------

As part of an audit in accordance with Korean Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

∙Identify and assess the risks of material misstatement of the separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.

∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

∙Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

∙Evaluate the overall presentation, structure and content of the separate financial statements, including the disclosures, and whether the separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Samil PricewaterhouseCoopers

Seoul, Korea

March 19, 2026

This report is effective as of March 19, 2026, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying separate financial statements and notes thereto. Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.<br>

------

GRAVITY CO., LTD.

Separate Statements of Financial Position

As of December 31, 2025 and 2024&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;*(In thousands of won)* | **Notes** |  | **December 31, 2025** | **December 31, 2024** |
| **Assets** |  |  |  |  |
| **Current assets** |  |  |  |  |
| Cash and cash equivalents | 5623 | W | 30553616 | 64263198 |
| Short-term financial instruments | 623 |  | 389000000 | 278000000 |
| Accounts receivable, net | 671523 |  | 28536382 | 35651270 |
| Other receivables, net | 6723 |  | 3420324 | 3409219 |
| Prepaid expenses | 15 |  | 1409245 | 1226672 |
| Other current financial assets | 623 |  | 3945138 | 5897585 |
| Other current assets |  |  | 1178880 | 380417 |
|  |  |  | 458043585 | 388828361 |
| **Non-current assets** |  |  |  |  |
| Investments in subsidiaries | 8 |  | 49236515 | 49376747 |
| Property and equipment, net | 922 |  | 4083804 | 5344496 |
| Intangible assets, net | 10 |  | 6284550 | 6765893 |
| Other non-current financial assets | 623 |  | 3342526 | 1999836 |
| Other non-current assets | 11 |  | 14529957 | 6277319 |
| Deferred tax assets | 20 |  | 4118562 | 3504236 |
|  |  |  | 81595914 | 73268527 |
| **Total assets** |  | W  | 539639499 | 462096888 |

---

*See accompanying notes to the separate financial statements.*

------

GRAVITY CO., LTD.

Separate Statements of Financial Position, Continued

As of December 31, 2025 and 2024

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In thousands of won)* | **Notes** |  | **December 31, 2025** | **December 31, 2024** |
| **Liabilities** |  |  |  |  |
| &nbsp;&nbsp;**Current liabilities** |  |  |  |  |
| Accounts payable | 623 | W  | 22950035 | 22597276 |
| Deferred revenue  | 15 |  | 5589150 | 6027907 |
| Withholdings |  |  | 595152 | 829430 |
| Accrued expenses |  |  | 1109202 | 1277685 |
| Income tax payable | 20 |  | 2604736 | 3435351 |
| Other current liabilities | 62223 |  | 1338394 | 1869454 |
|  |  |  | 34186669 | 36037103 |
| &nbsp;&nbsp;**Non-current liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Long-term accounts payable | 623 |  | 622745 | 220108 |
| &nbsp;&nbsp;&nbsp;Long-term deferred revenue | 15 |  | 409752 | 2571862 |
| &nbsp;&nbsp;&nbsp;Other non-current liabilities | 6202223 |  | 2945864 | 4614080 |
|  |  |  | 3978361 | 7406050 |
| **Total liabilities** |  | W  | 38165030 | 43443153 |
| **Equity** |  |  |  |  |
| Share capital | 114 |  | 3474450 | 3474450 |
| Capital surplus | 14 |  | 27482683 | 27482683 |
| Retained earnings | 14 |  | 470517336 | 387696602 |
| **Total equity** |  |  | 501474469 | 418653735 |
| **Total liabilities and equity** |  | W | 539639499 | 462096888 |

---

*See accompanying notes to the separate financial statements.*

------

GRAVITY CO., LTD.

Separate Statements of Comprehensive Income

For the years ended December 31, 2025 and 2024

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* | **Notes** |  | **2025** |  | **2024** |
| **Revenue** | 1524 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Online games |  | W  | 37920178 | W  | 36477961 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mobile games |  |  | 146024476 |  | 142121659 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other revenue |  |  | 2176291 |  | 703205 |
|  |  |  | 186120945 |  | 179302825 |
| **Cost of revenue** | 16 |  | 78629202 |  | 79520828 |
| **Gross profit** |  |  | 107491743 |  | 99781997 |
| Selling, general and administrative expenses | 1617 |  | 64469666 |  | 55591566 |
| **Operating profit** |  |  | 43022077 |  | 44190431 |
| **Non-operating income and expenses** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Finance income | 618 |  | 17972941 |  | 20047120 |
| &nbsp;&nbsp;&nbsp;Finance costs | 618 |  | (5683538) |  | (5048084) |
| &nbsp;&nbsp;&nbsp;Other non-operating income | 19 |  | 57115565 |  | 44145625 |
| &nbsp;&nbsp;&nbsp;Other non-operating expenses | 19 |  | (14281682) |  | (989581) |
| **Profit before income tax** |  |  | 98145363 |  | 102345511 |
| **Income tax expense** | 20 |  | 15324629 |  | 14453156 |
| **Profit for the year** |  | W  | 82820734 | W  | 87892355 |
| **Other comprehensive income** |  |  |  |  |  |
| Items that may be subsequently reclassified to profit or loss |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustments |  |  | - |  | - |
| **Total comprehensive income for the year** |  | W  | 82820734 | W | 87892355 |

---

*See accompanying notes to the separate financial statements.*

------

GRAVITY CO., LTD.

Separate Statements of Changes in Equity

For the years ended December 31, 2025 and 2024

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* | **Notes** |  | **Share**<br>**capital** | **Capital**<br>**surplus** | **Other components of equity** | **Retained earnings** | **Total** |
| **Balance at January 1, 2024** |  | W  | 3474450 | 27482683 | - | 299804247 | 330761380 |
| &nbsp;&nbsp;Total comprehensive income for the period: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Profit for the year |  |  | - | - | - | 87892355 | 87892355 |
| **Balance at December 31, 2024** |  | W  | 3474450 | 27482683 | - | 387696602 | 418653735 |
| **Balance at January 1, 2025** |  | W  | 3474450 | 27482683 | - | 387696602 | 418653735 |
| &nbsp;&nbsp;Total comprehensive income for the period: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Profit for the year |  |  | - | - | - | 82820734 | 82820734 |
| **Balance at December 31, 2025** |  | W  | 3474450 | 27482683 | - | 470517336 | 501474469 |

---

*See accompanying notes to the separate financial statements.*

------

GRAVITY CO., LTD.

Separate Statements of Cash Flow

&nbsp;&nbsp;&nbsp;&nbsp;

For the years ended December 31, 2025 and 2024

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* | **Notes** |  | **2025** |  | **2024** |
| **Cash flows from operating activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Profit for the year |  | W | 82820734 | W | 87892355 |
| &nbsp;&nbsp;&nbsp;Adjustments | 21 |  | (31553425) |  | &nbsp;&nbsp;&nbsp;(35637197) |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities | 21 |  | (2609149) |  | (6648561) |
| &nbsp;&nbsp;&nbsp;Interest received |  |  | 11999254 |  | 10086534 |
| &nbsp;&nbsp;&nbsp;Dividend received |  |  | 44937205 |  | 43120174 |
| &nbsp;&nbsp;&nbsp;Interest paid |  |  | (145197) |  | (77204) |
| &nbsp;&nbsp;&nbsp;Income tax paid |  |  | (17908050) |  | (18468574) |
| **Net cash provided by operating activities** |  |  | 87541372 |  | 80267527 |
| **Cash flows from investing activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Decrease in other current financial assets  |  |  | 8333 |  | 6667 |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposal of property and equipment | 9 |  | 1387 |  | 802 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of subsidiaries | 8 |  | (2682618) |  | (13925514) |
| &nbsp;&nbsp;&nbsp;Increase in short-term financial instruments |  |  | (111000000) |  | (29000000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase in other non-current financial assets |  |  | (600000) |  | - |
| &nbsp;&nbsp;&nbsp;Acquisition of property and equipment | 9 |  | (532207) |  | (207306) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of intangible assets | 10 |  | (5158039) |  | (3349455) |
| **Net cash used in investing activities** |  |  | (119963144) |  | (46474806) |
| **Cash flows from financing activities** |  |  |  |  |  |
| Repayment of lease liabilities | 22 |  | (1873674) |  | (2069495) |
| **Net cash used in financing activities** |  |  | (1873674) |  | (2069495) |
| **Effects of exchange rate changes on cash and cash equivalents** |  |  | 585864 |  | 382881 |
| **Net increase (decrease) in cash and cash equivalents** |  |  | (33709582) |  | 32106107 |
| **Cash and cash equivalents at beginning of the year** |  |  | 64263198 |  | 32157091 |
| **Cash and cash equivalents at end of the year** |  | W | 30553616 | W | 64263198 |

---

*See accompanying notes to the separate financial statements.*

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**1. General Information&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**

GRAVITY CO., LTD. (the "Company") was incorporated on April 4, 2000, to engage in developing and publishing online and mobile games, and other related business. The Company's headquarter is located at 15F, 396 World Cup buk-ro, Mapo-gu, Seoul, Korea. The Company's principal game product, "Ragnarok", a massive multi-player online role-playing game, was commercially launched in August 2002, and is currently operated internationally in 91 markets. The Company also operates many other games.

On February 8, 2005, the Company listed its shares on the Nasdaq Stock Market in the United States and issued 1,400,000 shares of common stocks in the form of American Depositary shares ("ADSs") under the symbol "GRVY".

As of December 31, 2025, the total paid-in capital amounts to W3,474,450 thousand. The Company's major shareholders and their respective percentage of ownership as of December 31, 2025 are as follows:

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;**Number of shares** | &nbsp;&nbsp;&nbsp;&nbsp;**Ownership (%)** |
| GungHo Online Entertainment, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;4121737 | &nbsp;&nbsp;&nbsp;&nbsp;59.31 |
| Others | &nbsp;&nbsp;&nbsp;&nbsp;2827163 | &nbsp;&nbsp;&nbsp;&nbsp;40.69 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;6948900 | &nbsp;&nbsp;&nbsp;&nbsp;100.00 |

---

**2. Basis of Presentation**

These separate financial statements have been prepared in accordance with Korean International Financial Reporting Standards ("K-IFRS"), as prescribed in the *Act on External Audits of Stock Companies, Etc. in the Republic of Korea.* The accompanying separate financial statements have been restructured and translated into English from the Korean language financial statements.

Certain information attached to the Korean language financial statements, but not required for a fair presentation of the Company's financial position, financial performance or cash flows, is not presented in the accompanying separate financial statements.

These separate financial statements were authorized for issuance by the Board of Directors on March 6, 2026, and are expected to be submitted for approval at the shareholders' meeting to be held on March 27, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Basis of measurement

The separate financial statements have been prepared on the historical cost basis.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Use of judgments and estimates

The preparation of the separate financial statements in conformity with K-IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The estimates and assumptions that have significant risk of affecting the carrying amounts of assets and liabilities for the reporting period are as follows:

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**2. Basis of Presentation**, **Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(2) Use of judgments and estimates, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(a) Deferred revenue &nbsp;&nbsp;&nbsp;&nbsp;

The Company sells virtual currency and in-game items that can be used in mobile games to game users. For each game in each country, the Company estimates and applies the game user's life cycle in order to recognize revenue generated by micro-transactions. The game user's life cycle is estimated based on the average period from the game user's first payment date to the last access date for active paying game users. The Company considers a game user as an active user if the period between the time of the user's most recent access of the game and the end of reporting period equals or is shorter than the estimated game users' life cycle. For remaining amounts of virtual currency and items that active users own at period-end, the related revenue is deferred considering the items' attributes. The Company estimates the user's life cycle by analyzing game users' activity patterns such as payment and access and it periodically reviews if there is any change of these estimates.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Impairment of investments in subsidiaries

The Company has elected to account for its investments in subsidiaries and associates using the cost method in accordance with Korean International Financial Reporting Standards (K-IFRS) No. 1027, 'Separate Financial Statements.' Meanwhile, dividends received from subsidiaries and associates are recognized in profit or loss at the point when the right to receive the dividend is established.

The Company determines whether to recognize impairment losses on investments in subsidiaries and associates in accordance with the provisions of K-IFRS No. 1036, 'Impairment of Assets.' If there are indicators of impairment, the Company performs an impairment test by comparing the entire carrying amount of the investment in subsidiaries and associates (including goodwill) with its recoverable amount (the higher of its fair value less costs to sell and its value in use) in accordance with K-IFRS No. 1036, 'Impairment of Assets.'

Any recognized impairment loss is not allocated to any asset (including goodwill) that forms part of the carrying amount of the investment in subsidiaries and associates. Furthermore, the reversal of an impairment loss is recognized to the extent that the recoverable amount of such investment assets subsequently increases in accordance with K-IFRS No. 1036, 'Impairment of Assets.'

**3. New Standards and Interpretations Adopted During the Year and Resulting Changes in Accounting Policies**

The Company has applied the following standards and amendments for the first time for the annual reporting period commencing on January 1, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;(1)Amendments to K-IFRS No. 1021 'The Effects of Changes in Foreign Exchange Rates' - Lack of Exchangeability

It requires assessing the exchangeability of a currency and, if it is not exchangeable into another currency, estimating the spot exchange rate and disclosing related information. There is no material impact on the financial statements from the amendments to the relevant standards.

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**4. Significant Accounting Policies** 

The principal accounting policies applied in the preparation of these separate financial statements in accordance with the K-IFRS are set out below. These policies have been consistently applied to all years presented, except if mentioned otherwise in Note 3.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Investment in subsidiaries, joint ventures, and associates

These separate financial statements are prepared and presented in accordance with K-IFRS No. 1027, Separate Financial Statements. The Company applies the cost method to investments in subsidiaries, associates, and joint ventures in accordance with K-IFRS No. 1027 (Note 8). Dividends from subsidiaries, associates, and joint ventures are recognized in profit or loss when the right to receive the dividends is established.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Cash and Cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, and other short-term investments with original maturities of three months or less that are readily convertible to known amounts of cash.

3) Financial Assets

&nbsp;&nbsp;&nbsp;&nbsp;(a) Classification

At initial recognition, the Company classifies its financial assets in the following measurement categories:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• measured at fair value through profit or loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• measured at fair value through other comprehensive income; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• measured at amortized cost.

The classification depends on the Company's business model for managing the financial assets and the contractual terms of the cash flows.

For financial assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. The Company reclassifies debt investments when, and only when its business model for managing those assets changes.

For investments in equity instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. Changes in fair value of equity instruments not elected as equity investment at fair value through other comprehensive income will be recognized in profit or loss.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Measurement

At initial recognition, the Company measures a financial asset at its fair value plus, for a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to its acquisition. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(3) Financial Assets, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(b) Measurement, Continued

Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

&nbsp;&nbsp;&nbsp;&nbsp; (i) Debt instruments

Subsequent measurement of debt instruments depends on the Company's business model for managing the asset and the cash flow characteristics of the asset. The Company classifies its debt instruments into one of the following three measurement categories:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets is included in 'finance income' using the effective interest rate method.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fair value through other comprehensive income: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets' cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income. Movements in

the carrying amount are taken through other comprehensive income, except for the recognition of impairment loss (reversal of impairment loss), interest income and foreign exchange gains and losses which are recognized in profit or loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss. Interest income from these financial assets is included in 'finance income' using the effective interest rate method. Foreign exchange gains and losses are presented in 'finance income or costs' and impairment losses are presented in 'other non-operating expenses'.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fair value through profit or loss: Assets that do not meet the criteria for amortized cost or fair value through other comprehensive income are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognized in profit or loss and presented net in the statement of profit or loss within 'finance income or costs' in the year in which it arises.

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(3) Financial Assets, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(b) Measurement, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(ii) Equity instruments

The Company subsequently measures all equity investments at fair value. Where the Company's management has elected to present fair value gains and losses on equity investments, which are held for long-term investment or strategic purpose, in other comprehensive income. There is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment.

Changes in the fair value of financial assets at fair value through profit or loss are recognized in 'other non-operating income and expenses' in the statement of profit or loss as applicable. Impairment loss (reversal of impairment loss) on equity investments measured at fair value through other comprehensive income are not reported separately from other changes in fair value.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Impairment

The Company recognizes loss allowances for expected credit losses("ECLs") on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• financial assets measured at amortized cost;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• debt investments measured at fair value through other comprehensive income; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• contract assets under K-IFRS No. 1115.

The Company measures loss allowances at an amount equal to lifetime ECLs, except for the following, which are measured at 12-month ECLs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• debt securities that are determined to have low credit risk at the reporting date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowances for accounts and other receivables (including lease receivables) and contract assets are always measured at an amount equal to lifetime ECLs.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company's historical experience and informed credit assessment, that includes forward-looking information.

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(3) Financial Assets, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(c) Impairment, Continued

The Company considers a financial asset to be in default when:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the debtor is unlikely to pay its obligations to the Company in full, without recourse by the Company to actions such as realizing security (if any is held); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the financial asset is more than 90 days past due.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.

12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk.

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Company expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

At each reporting date, the Company assesses whether financial assets carried at amortized cost and debt securities at fair value through other comprehensive income are credit-impaired. A financial asset is 'credit-impaired' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. For debt securities at fair value through other comprehensive income, the loss allowance is charged to profit or loss.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Recognition and Derecognition

Regular way purchases and sales of financial assets are recognized or derecognized on trade-date, the date on which the Company commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership.

If a transfer does not result in derecognition because the Company has retained substantially all the risks and rewards of ownership of the transferred asset, the Company continues to recognize the transferred asset in its entirety and recognizes a financial liability for the consideration received.

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(3) Financial Assets, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(e) Offsetting of financial instruments

Financial assets and liabilities are offset and the net amount reported in the statements of financial position where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the assets and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Accounts receivable

Accounts receivable are recognized initially at the amount of consideration that is unconditional, unless they contain significant financing components when they are recognized at fair value. Accounts receivables are subsequently measured at amortized cost using the effective interest method, less loss allowance.

&nbsp;&nbsp;&nbsp;&nbsp;(5) Property and Equipment

Property and equipment are initially measured at cost. The cost of property and equipment includes expenditures arising directly from the construction or acquisition of the asset, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management, and the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.

Property and equipment, subsequently, are carried at cost less accumulated depreciation and accumulated impairment losses. Subsequent costs are recognized in the carrying amount of property and equipment at cost or, if appropriate, as a separate item if it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be reliably measured.

Depreciation of all property and equipment, except for land, is calculated using the straight-line method to allocate their cost or revalued amounts, net of their residual values, over their estimated useful lives as follows:

---

| | |
|:---|:---|
|  | Estimated Useful Lives |
| Computer and other equipment | 4 years |
| Furniture and fixture | 4 years |
| Vehicles | 4 years |
| Leasehold improvements | (\*) |
| Right-of-use assets | (\*) |

---

(\*) The Company depreciates Right-of-use assets and the Leasehold improvements from the commencement date and the available date to the earlier date between the end of the lease term and the expiration date of Right-of-use asset's useful life using the straight-line method.

Depreciation methods, useful lives, and residual values are reviewed at the end of each reporting date and adjusted, if appropriate. The change is accounted for as a change in an accounting estimate.

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(6) Intangible Assets

Intangible assets, except for goodwill, are initially recognized at its historical cost, and carried at cost less accumulated amortization and accumulated impairment losses.

The Company amortizes intangible assets with a limited useful life using the straight-line method over the following periods:

---

| | |
|:---|:---|
|  | Estimated Useful Lives |
| Software | 1~3 years |
| Industrial property rights | 10 years |
| Other intangible assets | 1~5 years |

---

Expenditure on research activities is recognized in profit or loss as incurred. Development expenditure is capitalized only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Company intends to and has sufficient resources to complete development and to use or sell the asset. Other development expenditure is recognized in profit or loss as incurred.

The Company entered into a game licensing agreement with a number of third parties to gain exclusive rights to the games developed by those companies. The license fee payments are recognized as other intangible assets and amortized over the term of the contract using the straight-line method.

&nbsp;&nbsp;&nbsp;&nbsp;(7) Impairment of Non-financial Assets

At each reporting date, the Company reviews the carrying amounts of its non-financial assets (other than contract assets, incremental costs of obtaining a contract, costs to fulfil a contract, employee benefit related assets and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. Goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any indication of impairment, are tested for impairment annually by comparing their recoverable amounts to their carrying amounts.

The recoverable amount of an asset or cash generating unit ("CGU") is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using an adjusted discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognized in profit or loss if the carrying amount of an asset or CGU exceeds its recoverable amount.

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(8) Leases

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company uses the definition of a lease in K-IFRS No. 1116.

&nbsp;&nbsp;&nbsp;&nbsp;(a) As a lessee

At commencement or on modification of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of its relative stand-alone prices. However, the Company has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component by class of underlying asset.

The Company determines the lease term as the non-cancellable period of a lease, together with both (a) periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and (b) periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option. When the lessee and the lessor each has the right to terminate the lease without permission from the other party, the Company should consider a termination penalty in determining the period for which the contract is enforceable.

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Company by the end of the lease term or the cost of the right-of-use asset reflects that the Company will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

The Company determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased.

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(8) Leases, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(a) As a lessee, Continued

Lease payments included in the measurement of the lease liability comprise the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fixed payments, including in-substance fixed payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• amounts expected to be payable under a residual value guarantee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Company is reasonably certain not to terminate early.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company's estimate of the amount expected to be payable under a residual value guarantee, if the Company changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The Company presents right-of-use assets that do not meet the definition of investment property in 'Property and equipment' and lease liabilities in 'Other current liabilities' and 'Other non-current liabilities' in the statement of financial position.

The Company has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets and short-term leases. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

&nbsp;&nbsp;&nbsp;&nbsp;(b) As a lessor

At inception or on modification of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.

When the Company acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.

To classify each lease, the Company makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(8) Leases, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(b) As a lessor, Continued

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.

If an arrangement contains lease and non-lease components, then the Company applies K-IFRS No.1115 to allocate the consideration in the contract.

The Company applies the derecognition and impairment requirements in K-IFRS No. 1109 to the net investment in the lease. The Company further regularly reviews estimated unguaranteed residual values used in calculating the gross investment in the lease.

The Company recognizes lease payments received under operating leases as income on a straight-line basis over the lease term as part of 'non-operating income'.

&nbsp;&nbsp;&nbsp;&nbsp;(9) Financial Liabilities

&nbsp;&nbsp;&nbsp;&nbsp;(a) Classification and measurement

The Company's financial liabilities at fair value through profit or loss are financial instruments held for trading. A financial liability is held for trading if it is incurred principally for the purpose of repurchasing in the near term. A derivative that is not designated as a hedging instrument and an embedded derivative that is separated are also classified as held for trading.

The Company classifies non-derivative financial liabilities, except for financial liabilities at fair value through profit or loss, financial guarantee contracts and financial liabilities that arise when a transfer of financial assets does not qualify for derecognition, as financial liabilities carried at amortized cost and present as 'accounts payable', 'other current liabilities' and 'other non-current liabilities' in the separate statement of financial position.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Derecognition

Financial liabilities are removed from the statement of financial position when it is extinguished; for example, when the obligation specified in the contract is discharged or cancelled or expired or when the terms of an existing financial liability are substantially modified. The difference between the carrying amount of a financial liability extinguished or transferred to another party and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

&nbsp;&nbsp;&nbsp;&nbsp;**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(10) Provisions and Contingent Liabilities

Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability.

In addition, when there is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability, a disclosure regarding the contingent liabilities is made in the notes to the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;(11) Foreign Currency Translation

&nbsp;&nbsp;&nbsp;&nbsp;(a) Functional and presentation currency

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which it operates (the "functional currency"), which the financial statements in the Company and its branch (Taiwan) are presented in Korean won (KRW) and New Taiwan Dollar (NTD), respectively. The separate financial statements are presented in Korean won, which is the Company's functional and presentation currency.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the exchange rate at the reporting date are generally recognized in profit or loss. They are recognized in other comprehensive income if they relate to qualifying cash flow hedges and qualifying effective portion of net investment hedges in a foreign operation.

Exchange differences arising on non-monetary financial assets and liabilities such as equity instruments at fair value through profit or loss and equity instruments at fair value through other comprehensive income are recognized in profit or loss and other comprehensive income, respectively, as part of the fair value gain or loss.

&nbsp;&nbsp;&nbsp;&nbsp;(12) Statement of cash flows

The Company has elected to present cash flows from operating activities using the indirect method. Cash flows denominated in a foreign currency are reported using the average exchange rate.

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(13) Revenues from contracts with customers

The Company engages in game licensing, IP licensing, and game publishing businesses.

Revenue is measured at the fair value of the consideration received or receivable for sale of goods or rendering of services arising from the normal course of the business. Revenue is recognized as net amounts excluding value added taxes, returns, rebates and discounts.

&nbsp;&nbsp;&nbsp;&nbsp;(a) Revenue from micro-transaction and subscription

The Company recognizes micro-transaction revenue of online and mobile games when the Company satisfies its performance obligations.

Whether the performance obligations are satisfied depends on the natures of virtual currency and in-game virtual items. Items are categorized into consumable, periodic, and permanent in-game virtual items.

Consumable in-game virtual items are items that are consumed by the specific action of a game user, and periodic in-game virtual items are items that can be used repeatedly during a specified effective period. Permanent in-game virtual items are items that can be used by game users repeatedly without an effective period.

The accounting policy on revenue recognition is described below in relation to micro-transaction revenue from the sales of virtual currency and items.

&nbsp;&nbsp;&nbsp;&nbsp;(i) Online Games

The specific method of recognizing and deferring revenue for virtual currency and consumable, periodic, and permanent items purchased with virtual currency is as follows.

At the end of the reporting period, the Company defers the total amount of remaining virtual currency.

For consumable in-game virtual items, the related revenue is recognized when the in-game virtual item is consumed. The Company defers the revenue for remaining amounts of virtual items owned by active paying users within the estimated user life cycle at the end of the reporting period.

For periodic in-game virtual items, the related revenue is recognized ratably over the effective period. The Company defers the revenue for remaining effective period.

For permanent in-game virtual items, revenue is recognized ratably over the estimated user life cycle. The Company defers the revenue for remaining period of estimated user life cycle at the end of the reporting period.

&nbsp;&nbsp;&nbsp;&nbsp;(ii) Mobile Games

The specific method of recognizing and deferring revenue for virtual currency and consumable, periodic, and permanent items purchased with virtual currency is as follows.

Mobile game users purchase virtual currency that can be used to purchase in-game items. The Company has no refund obligation after the game user purchases virtual currency. At the end of the reporting period, the Company defers the revenue for the remaining virtual currency possessed by active paying users.

**4. Significant Accounting Policies, Continued**

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

&nbsp;&nbsp;&nbsp;&nbsp;(13) Revenues from contracts with customers, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(a) Revenue from micro-transaction and subscription, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(ii) Mobile Games, Continued

For consumable in-game virtual items, revenue is recognized when the in-game virtual item is consumed. The Company defers the revenue for remaining virtual items possessed by active users within the estimated user life cycle at the end of the reporting period.

For periodic in-game virtual items with effective period, revenue is recognized ratably over the effective period. The Company defers the revenue for remaining effective period.

For permanent in-game virtual items, revenue is recognized ratably over the estimated user life cycle. The Company defers the revenue for remaining period of estimated user life cycle at the end of the reporting period.

&nbsp;&nbsp;&nbsp;&nbsp; (b) Royalties and License Fees

In connection with the Company's online and mobile games, the Company enters into license agreement in connection with the right to access the intellectual property, such as game character images and stories. The Company believes that the agreement is a promise to provide a right to the customer to access the related IP because the Company will undertake activities that significantly affect the intellectual property to which the customer has rights, the rights granted by the license directly expose the customer to any positive or negative effects of the Company's activities, and those activities do not result in the transfer of a good or a service to the customer as those activities occur. Therefore, the Company's performance obligations in connection with these agreements are satisfied over time.

Since the nature of the license promise is to provide customers with access to the intellectual property of the Company during the license period, the Company's performance obligation corresponds to the performance obligation satisfied over the time, and revenue is recognized over the license period. The Company recognizes revenue for the license fee through the straight-line method during the contract period, and for the running royalty revenue, the revenue is recognized on an accrual basis at the time the revenue distribution is established in accordance with the terms of the contract. When the running royalty revenue based on the contractual royalty rate and the actual revenue of the licensee exceeds the ratably recognized minimum guarantee, the excess amount is then recognized as revenue and accounts receivable.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Other Income (Other Revenue)

Other income consists of revenue from the sale of console games, game character merchandise, animations, and other services. These other services include the sale of mobile applications and website development and operation services for third parties. Revenue from development and operation services for third parties is recognized over time by measuring the progress toward the satisfaction of the performance obligation. The measurement method determines the percentage of completion based on the costs incurred up to the end of the reporting period relative to the total estimated costs of the contract.

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(13) Revenues from contracts with customers, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(d) Incremental costs of obtaining contract

The Company pays platform processing fees to operate mobile games on third party platforms. These fees are charged based on the game users' purchases in cash and considered as incremental cost of obtaining contracts with customers and therefore capitalized. The Company presents these costs as prepaid expense and amortizes them to costs of revenue at the same time when the related revenue of the services provided to the game users are recognized.

&nbsp;&nbsp;&nbsp;&nbsp;(14) Current and Deferred Tax

The tax expense for the period consists of current and deferred tax. Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. The tax expense is measured at the amount expected to be paid to the taxation authorities, using the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation, and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Company measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the separate financial statements. However, deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss.

Deferred tax assets are recognized only if it is probable that future taxable amounts will be available to utilize those temporary differences and tax credit.

The Company recognizes a deferred tax liability for all taxable temporary differences associated with investments in subsidiaries, associates, and interests in joint arrangements, except to the extent that the Company is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. In addition, the Company recognizes a deferred tax asset for all deductible temporary differences arising from such investments to the extent that it is probable the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilized.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis.

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**4. Significant Accounting Policies, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(15) Employee Benefits

&nbsp;&nbsp;&nbsp;&nbsp;(a) Short-term employee benefits

Short-term employee benefits are employee benefits that are due to be settled within 12 months after the end of the period in which the employees render related services. When an employee has rendered a service to the Company during an accounting period, the Company recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Defined contribution pension plan

The Company has a defined contribution pension plan with the related contribution to the pension plan recorded as severance benefit expenses for the employees with service period over a year. The Company recognizes provision for severance benefits for the employees with service period less than a year.

&nbsp;&nbsp;&nbsp;&nbsp;(16) Standards issued but not yet effective

A number of new standards are effective for annual periods beginning after January 1, 2025 and earlier application is permitted; however, the Company has not early adopted the new or amended standards in preparing these separate financial statements.

The following amended standards and interpretations are not expected to have a significant impact on the Company's separate financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Classification and Measurement of Financial Instruments (Amendment to K-IFRS 1109 'Financial Instruments' and K-IFRS 1107 'Financial Instruments: Disclosures')

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Annual Improvements to IFRS Accounting Standards

-K-IFRS 1101 'First-time adoption of International Financial Reporting Standards';

-K-IFRS 1107 'Financial instruments: Disclosures';

-K-IFRS 1109 'Financial instruments';

-K-IFRS 1110 'Consolidated Financial Statements' ; and

-K-IFRS 1007 'Statement of cash flows'

K-IFRS 1118 'Presentation and Disclosure in Financial Statements')

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**5. Cash and cash equivalents**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Cash and cash equivalents as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)*  |  | **December 31, 2025** | **December 31, 2024** |
| Demand deposits, etc. | W | 30,553,616 | 64,263,198 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(2) The Company does not have any restricted cash and cash equivalents as of December 31, 2025 and 2024.

**6. Financial Instruments by Category**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Carrying amounts of financial instruments by category as of December 31, 2025 and 2024 are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025** | **December 31, 2024** |
| **Financial assets at amortized cost** | **Financial assets at amortized cost** | **Financial assets at amortized cost** | **Financial assets at amortized cost** |
| Cash and cash equivalents | W | 30553616 | 64263198 |
| Short-term financial instruments |  | 389000000 | 278000000 |
| Accounts receivable, net |  | 28536382 | 35651270 |
| Other receivables, net |  | 3385229 | 3290165 |
| Other current financial assets(\*1) |  | 3945138 | 5897585 |
| Other non-current financial assets(\*2) |  | 2742526 | 1999836 |
| **Financial assets at fair value through profit or loss** | **Financial assets at fair value through profit or loss** |  |  |
| Long-term financial assets measured at fair value(\*3) |  | 600000 | - |
|  | W | 458762891 | 389102054 |

---

Since the carrying amount is a reasonable approximation of fair value, it has been excluded from the fair value disclosure.

(\*1) Other current financial assets consist of accrued income, deposits and lease receivable.

(\*2) Other non-current financial assets consist of deposits and lease receivable.

(\*3) Long-term financial assets measured at fair value consist of convertible bonds and are included in other non-current financial assets.

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025** | **December 31, 2024** |
| **Financial liabilities at amortized cost** | **Financial liabilities at amortized cost** | **Financial liabilities at amortized cost** | **Financial liabilities at amortized cost** |
| Accounts payable(\*1) | W | 18303305 | 18593510 |
| Long-term accounts payable |  | 622745 | 220108 |
| Other non-current liabilities |  | 239868 | 239868 |
| **Other financial liabilities** |  |  |  |
| lease liabilities(\*2) |  | 3514786 | 5283984 |
|  | W | 22680704 | 24337470 |

---

Since the carrying amount is a reasonable approximation of fair value, it has been excluded from the fair value disclosure

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**6. Financial Instruments by Category, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Carrying amounts of financial instruments by category as of December 31, 2025 and 2024 are as follows, continued

(\*1) Annual leave allowance, bonus accruals, etc. that should be paid to employees are excluded.

(\*2) Lease liabilities were excluded from fair value disclosures in accordance with K-IFRS No. 1107 'Financial Instruments: Disclosures.'

&nbsp;&nbsp;&nbsp;&nbsp;(2) Net income(expenses) from financial instruments for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2024** |
| **Financial assets at amortized cost** |  |  |  |
| &nbsp;&nbsp;Interest income | W | 11384704 | 11819137 |
| &nbsp;&nbsp;Differences in foreign currency |  | 285919 | 4834517 |
|  |  | 11670623 | 16653654 |
| **Financial assets at fair value through profit or loss** | **Financial assets at fair value through profit or loss** | **Financial assets at fair value through profit or loss** | **Financial assets at fair value through profit or loss** |
| &nbsp;&nbsp;Interest income |  | 633 | - |
|  | W | 11671256 | 16653654 |

---

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2024** |
| **Financial liabilities at amortized cost** |  |  |  |
| &nbsp;&nbsp; Differences in foreign currency | W | 773184 | (1572064) |
| **Other financial liabilities** |  |  |  |
| &nbsp;&nbsp; Interest expense |  | (155037) | (82554) |
|  | W | 618147 | (1654618) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(3) Fair value hierarchy

Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2: all inputs other than quoted prices included in level 1 that are observable (either directly that is, prices, or indirectly that is, derived from prices) for the asset or liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3: unobservable inputs for the asset or liability.

The fair value of financial instruments traded in an active market is determined based on the quoted market price as of the end of the reporting period. If the quoted prices are readily and regularly available through exchanges, sellers, brokers, industry groups, rating agencies or regulators and such prices represent actual market transactions that occur regularly between independent parties, they are considered active markets. These products are included in Level 1.

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. These valuation techniques use as much market observable information as possible and use the least amount of company-specific information. At this time, if all the significant input variables required to measure the fair value of a good are observable, the good is included in Level 2.

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**6. Financial Instruments by Category, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(3) Fair value hierarchy, Continued

If more than one significant input variable is not based on observable market information, the item is included in Level 3.

The valuation techniques used to measure the fair value of a financial instrument include:

- Market price or dealer price of a similar financial instrument

- The fair value of derivative instruments is determined by discounting the amount to present value using the leading exchange rate as of the end of the reporting period

For the other financial instruments, the Company applied other valuation techniques such as discounted cash flow, etc.

The following table presents the amounts by fair value hierarchy as of the end of the current reporting period

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Level 1 | Level 2 | Level 3 | Total |
| Fair value measurements |  |  |  |  |
| Long-term financial assets measured at fair value | - | - | 600000 | 600000 |

---

**7. Accounts and Other Receivables**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Accounts and other receivables as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)*  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
|  |  | Accounts<br>receivable | Other receivables | Accounts<br>receivables | Other receivables |
| Non-related party | W | 14080688 | 48079 | 21571967 | 308157 |
| Related party  |  | 14495891 | 3372245 | 14121140 | 3101062 |
| Less: Loss allowance |  | (40197) | - | (41837) | - |
|  | W | 28536382 | 3420324 | 35651270 | 3409219 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(2) Changes in the loss allowance of accounts receivable during the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **Accounts receivable** | **Accounts receivable** |
|  |  | **2025** | **2024** |
| Beginning balance | W | 41837 | 12007 |
| (Reversal of) Bad debt expenses |  | 442 | 29830 |
| Write-off |  | (2082) | - |
| Ending balance | W | 40197 | 41837 |

---

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**7. Accounts and Other Receivables, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(3)Expected credit losses (ECLs) and credit risk exposures for accounts and other receivables as of December 31, 2025 and 2024 are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Accounts receivable

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In thousands of won)* | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Expected loss rate(%)** |  | **Carrying** <br> **amount** | **Loss allowance** |
| Not due or overdue for less than 90 days | 0.10 | W  | 28406085 | 27574 |
| More than 90 days ~ Less than 180 days | 0.25 |  | 158003 | 401 |
| More than 180 days ~ Less than 270 days | 33.76 |  | 311 | 105 |
| More than 270 days ~ Less than 1 year | 61.35 |  | 163 | 100 |
| More than 1 year | 100.00 |  | 12017 | 12017 |
|  |  | W  | 28576579 | 40197 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In thousands of won)* | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Expected loss rate(%)** |  | **Carrying** <br>**Amount** | **Loss allowance** |
| Not due or overdue for less than 90 days | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.08  | W  | 35653617 | 27574 |
| More than 90 days ~ Less than 180 days | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.44  |  | 25248 | 401 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;More than 180 days ~ Less than 270 days | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 100.00  |  | 2023 | 105 |
| More than 270 days ~ Less than 1 year | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 100.00  |  | 4430 | 100 |
| More than 1 year | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 100.00  |  | 7789 | 12017 |
|  |  | W  | 35693107 | 40197 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(b) Other receivables

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In thousands of won)* | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Expected loss rate(%)** |  | **Carrying** <br> **amount** | **Loss allowance** |
| Not due or overdue for less than 90 days | 0.00 | W  | 3420324 | - |
| More than 90 days ~ Less than 180 days | 0.00 |  | - | - |
|  |  | W  | 3420324 | - |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In thousands of won)* | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Expected loss rate(%)** |  | **Carrying** <br>**amount** | **Loss allowance** |
| Not due or overdue for less than 90 days | 0.00 | W  | 3403128 | - |
| More than 90 days ~ Less than 180 days | 0.00 |  | 6091 | - |
|  |  | W  | 3409219 | - |

---

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**7. Accounts and Other Receivables, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(3)ECLs and credit risk exposures for accounts and other receivables as of December 31, 2025 and 2024 are as follows, Continued:

In assessing the recoverability of accounts and other receivables, the Company considers changes in the credit rating of accounts and other receivables from the commencement of the credit to the end of the reporting period.

The Company applies simplified approach for accounts and other receivables to measure the loss allowance at an amount equal to lifetime expected credit losses. To measure the expected credit losses, accounts and other receivables are grouped based on credit risk characteristics and the duration of past due balances. ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls. The Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes the Company's historical experience and informed credit assessment, that includes forward-looking information.

**8. Investment in Subsidiaries**

&nbsp;&nbsp;&nbsp;&nbsp;(1)Details of investment in subsidiaries as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  |  | **Percentage of ownership (%)** | **Percentage of ownership (%)** |
| **Subsidiary** | **Location** | **Main business** | **Fiscal year end** | **December 31, 2025** | **December 31, 2024** |
| Gravity Interactive, Inc. | USA | Online and mobile game services | December | 100.00 | 100.00 |
| Gravity NeoCyon, Inc.(\*1) | Korea | Mobile Game Development and Service | December | 100.00 | 100.00 |
| Gravity Communications Co., Ltd. | Taiwan | Online and mobile game services | December | 100.00 | 100.00 |
| PT. Gravity Game Link. | Indonesia | Online and mobile game services | December | 70.00 | 70.00 |
| Gravity Game Tech Co., Ltd. | Thailand | Online and mobile game services | December | 100.00 | 100.00 |
| Gravity Game Arise Co., Ltd. | Japan | Online and mobile game services | December | 100.00 | 100.00 |
| Gravity Game Hub PTE., Ltd. | Singapore | Online and mobile game services | December | 100.00 | 100.00 |
| Gravity Game Vision Limited. | Hongkong | Online and mobile game services | December | 100.00 | 100.00 |
| Gravity Game Unite SDN.BHD(\*2). | Malaysia | Online and mobile game services | December | 100.00 | - |

---

(\*1) Gravity NeoCyon, Inc. was acquired an additional 0.47% during the year ended December 31, 2024 with 100% ownership interest held by the Parent Company.

(\*2) Gravity Game Unite SDN. BHD was established in March 2025 and was included as a subsidiary for the year ended December 31, 2025.

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**8. Investment in Subsidiaries, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(2)Changes in investment in subsidiaries for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2025** | **2025** | **2025** |
| **Subsidiary** |  | **Beginning balance** | **Acquisition** | **Impairment (reversal)** | **Ending balance** |
| Gravity Interactive, Inc. (\*1) | W | - | - | 10580150 | 10580150 |
| Gravity NeoCyon, Inc.  |  | 8737422 | - | - | &nbsp;&nbsp;&nbsp;&nbsp; 8737422  |
| Gravity Communications Co., Ltd. | Gravity Communications Co., Ltd. | 5681415 | - | - | 5681415 |
| PT. Gravity Game Link.  |  | 2483407 | - | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -  | &nbsp;&nbsp;&nbsp;&nbsp; 2483407  |
| Gravity Game Tech Co., Ltd.  |  | 7130555 | - | -  | 7130555  |
| Gravity Game Arise Co., Ltd. (\*2) |  | 18378045 | 1952740 | (13403000)  | 6927785 |
| Gravity Game Hub PTE., Ltd. |  | 6332621 | - | - | &nbsp;&nbsp;&nbsp;&nbsp; 6332621  |
| Gravity Game Vision Limited. |  | 633282 |  | - | 633282 |
| Gravity Game Unite SDN.BHD.(\*3) |  | - | 729878  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -  | 729878  |
|  | W | 49376747 | 2682618 | (2822850)  | 49236515  |

---

(\*1) After re-evaluating the impairment losses recognized in periods prior to 2024, an impairment reversal of 10,580,150 thousand KRW was recognized.

(\*2) During the current period, an impairment loss of 13,403,000 thousand KRW was recognized as the recoverable amount of Gravity Game Arise Co., Ltd. fell below its carrying amount.

(\*3) During the current period, Gravity Game Unite SDN.BHD. was established with a 100% equity interest.

---

| | | | | |
|:---|:---|:---|:---|:---|
| *{In thousands of won)* |  | **2024** | **2024** | **2024** |
| **Subsidiary** |  | **Beginning balance** | **Acquisition** | **Ending balance** |
| Gravity Interactive, Inc.(\*1) | W | - | - | - |
| Gravity NeoCyon, Inc. (\*2) |  | 5637089 | 3100333 | &nbsp;&nbsp;&nbsp;&nbsp; 8737422  |
| Gravity Communications Co., Ltd.  |  | 5681415 | - | 5681415 |
| PT. Gravity Game Link.  | PT. Gravity Game Link.  | 2483407 | - | 2483407 |
| Gravity Game Tech Co., Ltd. (\*3) | Gravity Game Tech Co., Ltd. (\*3) | 3407555 | 3723000 | 7130555 |
| Gravity Game Arise Co., Ltd. (\*3) | Gravity Game Arise Co., Ltd. (\*3) | 11275865 | 7102180 | 18378045 |
| Gravity Game Hub PTE., Ltd.  | Gravity Game Hub PTE., Ltd.  | 6332621 | - | 6332621 |
| Gravity Game Vision Limited. | Gravity Game Vision Limited. | 633282 | - | 633282 |
|  | W | 35451234 | 13925513 | 49376747 |

---

(\*1) Prior to 2024, the entire amount was recognized as an impairment loss as the recoverable amount fell below the carrying amount.

(\*2) During the year ended December 31, 2024, the Company participated in a paid-in capital increase through the issuance of new shares by Gravity Neocyon Inc., increasing its equity interest to 99.73%, and subsequently became a 100% wholly-owned subsidiary by purchasing an additional 0.27% through the exercise of minority shareholders' appraisal rights.

(\*3) During the year ended December 31, 2024, the Company participated in the paid-in capital increases conducted by Gravity Game Tech Co., Ltd. and Gravity Game Arise Co., Ltd., and there were no changes in the equity interest percentage.

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**8. Investment in Subsidiaries, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(3) Summary of financial information of subsidiaries for the current and prior periods is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* | **2025** | **2025** | **2025** | **2025** | **2025** |
| **Subsidiary** |  | **Total assets** | **Total liabilities** | **Revenue** | **Profit (loss) for**<br>**the year** |
| Gravity Interactive, Inc. | W | 42811520 | 29821998 | 193942577 | 2016809 |
| Gravity NeoCyon, Inc. |  | 14586231 | 3380018 | 18287248 | 487256 |
| Gravity Communications Co., Ltd. |  | 33271379 | 8164808 | 45735096 | 5846620 |
| PT. Gravity Game Link. |  | 2429974 | 735538 | 2961141 | (514617) |
| Gravity Game Tech Co., Ltd. |  | 66438880 | 12474843 | 46040690 | 9776017 |
| Gravity Game Arise Co., Ltd.  |  | 11527830 | 5729683 | 14995225 | (2513369) |
| Gravity Game Hub PTE., Ltd. |  | 52912619 | 9761767 | 74135929 | 1346603 |
| Gravity Game Vision Limited. |  | 51911717 | 19013461 | 94875222 | 11296112 |
| Gravity Game Unite SDN.BHD. |  | 945080 | 431236 | 28194 | (265995) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* | **2024** | **2024** | **2024** | **2024** | **2024** |
| **Subsidiary** |  | **Total assets** | **Total liabilities** | **Revenue** | **Profit (loss) for**<br>**the year** |
| Gravity Interactive, Inc. | W | 28078172  | 16855468  | 39938248  | 73691  |
| Gravity NeoCyon, Inc.  |  | 15000011  | 4281053  | 20315748  | 1771492  |
| Gravity Communications Co., Ltd. |  | 27121263  | 6687225  | 35188837  | 1754375  |
| PT. Gravity Game Link |  | 2693086  | 366844  | 1475922  | (50963) |
| Gravity Game Tech Co., Ltd. |  | 72122833  | 23779945  | 48771433  | 6860364  |
| Gravity Game Arise Co., Ltd.  |  | 7712161  | 1192327  | 5574326  | (6237282) |
| Gravity Game Hub PTE., Ltd. |  | 68727648  | 13683947  | 89256880  | 13815260  |
| Gravity Game Vision Limited. |  | 72467900  | 26755643  | 160067411  | 21945899  |

---

**9. Property and Equipment**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Details of property and equipment as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** |
|  |  | **Acquisition**<br>**cost** | **Accumulated depreciation** | **Carrying** <br>**amount** | **Acquisition cost** | **Accumulated depreciation** | **Carrying** <br>**amount** |
| Computer and other equipment | W | 4648952 | (3882486) | 766466 | 4184481 | (3546324) | 638157 |
| Furniture and fixture |  | 907148 | (861376) | 45772 | 891343 | (804324) | 87019 |
| Vehicles |  | 9101 | (9101) | - | 9101 | (9101) | - |
| Leasehold improvements |  | 1602967 | (1566386) | 36581 | 1588067 | (1496534) | 91533 |
| Right-of-use assets |  | 5752800 | (2517815) | 3234985 | 5976408 | (1448621) | 4527787 |
|  | W  | 12920968 | (8837164) | 4083804 | 12649400 | (7304904) | 5344496 |

---

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**9. Property and Equipment, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(2) Changes in property and equipment for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Computer and other equipments**  | **Furniture**<br>**and fixture** | **Vehicles** | **Leasehold**<br>**improvements** | **Right-of-use assets** | **Total** |
| Beginning balance | W | 638157 | 87019 | - | 91533 | 4527787 | &nbsp;&nbsp;&nbsp;&nbsp;5344496 |
| Acquisitions |  | 504330 | 17296 | - | 14900 | 471212 | &nbsp;&nbsp;&nbsp;&nbsp;1007738 |
| Depreciation |  | (376021) | (58543) | - | (69852) | (1764014) | &nbsp;&nbsp;&nbsp;&nbsp;(2268430) |
| Ending balance | W | 766466 | 45772 | - | 36581 | 3234985 | &nbsp;&nbsp;&nbsp;&nbsp;4083804 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Computer and other equipments**  | **Furniture**<br>**and fixture** | **Vehicles** | **Leasehold**<br>**improvements** | **Right-of-use assets** | **Total** |
| Beginning balance | W | 761436 | 170628 | 1327 | 267058 | 2979153 | &nbsp;&nbsp;&nbsp;&nbsp;4179602 |
| Acquisitions |  | 192296 | 17248 | - | - | 3492595 | &nbsp;&nbsp;&nbsp;&nbsp;3702139 |
| Depreciation |  | (315575) | (100857) | (1327) | (175525) | (1943961) | &nbsp;&nbsp;&nbsp;&nbsp;(2537245) |
| Ending balance | W | 638157 | 87019 | - | 91533 | 4527787 | &nbsp;&nbsp;&nbsp;&nbsp;5344496 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(3) Classification of depreciation expenses in the statements of comprehensive income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2024** |
| Cost of revenues | &nbsp;&nbsp;W | &nbsp;&nbsp;633938 | &nbsp;&nbsp;578098 |
| Selling, general and administrative expenses(\*) |  | &nbsp;&nbsp;1634492 | &nbsp;&nbsp;1959147 |
|  | &nbsp;&nbsp;W  | &nbsp;&nbsp;2268430 | &nbsp;&nbsp;2537245 |

---

(\*) The depreciation expenses recognized as the research and development included in selling, general and administrative expenses was W25,774 thousand and W33,388 thousand, respectively, for the years ended December 31, 2025 and 2024.

(4) As of December 31, 2025 and 2024, there are no property and equipment that are pledged as collateral for the Company's debts.

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**10. Intangible Assets**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Details of intangible assets as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** |
|  |  | **Acquisition cost** | **Accumulated** <br>**amortization**(\*) | **Carrying**<br>**amount** | **Acquisition cost** | **Accumulated amortization** (\*) | **Carrying**<br>**amount** |
| Software | W | 15012212 | (13063776) | 1948436 | 14572103 | (12807213) | 1764890 |
| Patents |  | 2070648 | (993521) | 1077127 | 1723078 | (854875) | 868203 |
| Other intangible assets |  | 9177670 | (5918683) | 3258987 | 8965066 | (4832266) | 4132800 |
|  | W  | 26260530 | (19975980) | 6284550 | 25260247 | (18494354) | 6765893 |

---

(\*) Accumulated amortization includes the amount of accumulated impairment loss.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Changes in intangible assets for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2025** | **2025** | **2025** |
| *(In thousands of won)* |  | **Software** | **Patents** | **Other intangible** <br>**assets** | **Total** |
| Beginning balance | W | 1764890 | 868203 | 4132800 | 6765893 |
| Acquisitions |  | 1459690 | 353193 | 1906560 | 3719443 |
| Amortization |  | (1276144) | (139810) | (2437195) | (3853149) |
| Disposals |  | - | (4459) | (67) | (4526) |
| Impairment loss(\*) |  | - | - | (29111) | (29111) |
| Miscellaneous |  | - | - | (314000) | (314000) |
| Ending balance | W | 1948436 | 1077127 | 3258987 | 6284550 |

---

(\*) The Company recognized W29,111 thousand of impairment loss as carrying amount of the other intangible assets exceeded recoverable amount as of December 31, 2025.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2024** | **2024** | **2024** | **2024** |
| *(In thousands of won)* |  | **Software** | **Patents** | **Other intangible** <br>**assets** | **Total** |
| Beginning balance | W | 2650843 | 611348 | 2727405 | 5989596 |
| Acquisitions |  | 375073 | 366916 | 2966618 | 3708607 |
| Amortization |  | (1261026) | (110061) | (1148240) | (2519327) |
| Disposals |  | - | - | (2839) | (2839) |
| Impairment loss(\*) |  | - | - | (410144) | (410144) |
| Ending balance | W | 1764890 | 868203 | 4132800 | 6765893 |

---

(\*) The Company recognized W410,144 thousand of impairment loss as carrying amount of other intangible assets license exceeded recoverable amount as of December 31, 2024.

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**10. Intangible Assets, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(3) Classification of amortization in the statements of comprehensive income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2024** |
| Cost of revenues | &nbsp;&nbsp;W | 2039299 | 696451 |
| Selling, general and administrative expenses(\*) |  | 1813850 | &nbsp;&nbsp;1822876 |
| Total | &nbsp;&nbsp;W | 3853149 | &nbsp;&nbsp;2519327 |

---

(\*) The amortization recognized as the research and development included in selling, general and administrative expenses was W552,191 thousand and W528,382 thousand, respectively, for the years ended December 31, 2025 and 2024.

**11. Other non-current assets**

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)*  | | **December 31, 2025**  | **December 31, 2024**  |
| Prepaid Expenses(\*) | &nbsp;&nbsp;W  | 13,974,836 | 5,958,410 |
| Others | | 555,121 | 318,909 |
| | &nbsp;&nbsp;W  | 14,529,957 | 6,277,319 |

---

(\*) It consists of minimum guaranteed royalties and technical support fee.

**12. Employee Benefit** 

The expenses recognized in relation to defined contribution plan for the years ended December 31, 2025 and 2024 are W2,001,438 thousand and W1,868,777 thousand, respectively.

**13. Commitments**

&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company enters into game licensing agreements with several external game developers to secure exclusive rights to games developed by third parties; down payments paid are recognized as other intangible assets, and minimum guarantee royalties (Minimum Guarantee) are recorded as other non-current assets. In this regard, the amount of future payment commitments under these contracts, which have not been recognized as liabilities as of the end of the current period, is KRW 2,713,461 thousand (end of the previous period: KRW 4,159,526 thousand).

&nbsp;&nbsp;&nbsp;&nbsp; (2) As of the end of the current period, the Company is provided with payment guarantees of KRW 110,400 thousand from Seoul Guarantee Insurance Co., Ltd. in relation to performance contracts, etc.

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**14. Share Capital and Capital Surplus**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Details of common shares as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In won and in number of shares)* |  | **December 31, 2025** | **December 31, 2024** |
| Number of authorized shares  |  | 40000000 | &nbsp;&nbsp;40000000 |
| Value per share | &nbsp;&nbsp;W | &nbsp;&nbsp;500 | &nbsp;&nbsp;500 |
| Number of shares issued  |  | &nbsp;&nbsp;6948900 | &nbsp;&nbsp;6948900 |
| Common shares | &nbsp;&nbsp;W | &nbsp;&nbsp;3474450000 | &nbsp;&nbsp;3474450000 |

---

&nbsp;&nbsp;&nbsp;&nbsp; (2) Details of capital surplus as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025** | **December 31, 2024** |
| Additional paid-in capital | W | 25357547 | &nbsp;&nbsp;25357547 |
| Other capital surplus  |  | &nbsp;&nbsp;2125136 | &nbsp;&nbsp;2125136 |
|  | W  | &nbsp;&nbsp;27482683 | &nbsp;&nbsp;27482683 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(3) Details of retained earnings as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025** | **December 31, 2024** |
| Unappropriated retained earnings | &nbsp;&nbsp;W | 470,517,336 | &nbsp;&nbsp;387,696,602 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(4) According to the Company's Articles of Incorporation, the Company may issue 2,000,000 shares of preferred stock without voting rights, and there are no preferred shares issued as of December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;(5) Statements of appropriation of retained earnings as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| Date of appropriation for 2025: March 27, 2026 |  |  |  |
| Date of appropriation for 2024: March 31, 2025 |  |  |  |
| *(In thousands of won)* |  | **2025** | **2024** |
| Retained earnings available for appropriation |  |  |  |
| &nbsp;&nbsp;Unappropriated retained earnings carried over from prior year  | &nbsp;&nbsp;W | &nbsp;&nbsp;387696602 | &nbsp;&nbsp;299804247 |
| &nbsp;&nbsp;Profit for the year |  | &nbsp;&nbsp;82820734 | &nbsp;&nbsp;87892355 |
|  |  | &nbsp;&nbsp;470517336 | &nbsp;&nbsp;387696602 |
| Appropriation of retained earnings |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| Unappropriated retained earnings to be carried forward | &nbsp;&nbsp;W | &nbsp;&nbsp;470517336 | &nbsp;&nbsp;387696602 |

---

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**15. Revenue from Contracts with Customers**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Details of revenue from contracts with customers based on the service contract type and the timing of satisfaction of performance obligations are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2024** |
| Service contract |  |  |  |
| Micro transaction & Subscription revenue | &nbsp;&nbsp;W | &nbsp;&nbsp;42845074 | &nbsp;&nbsp;55715793 |
| &nbsp;&nbsp;&nbsp; Online games |  | &nbsp;&nbsp;7461772 | &nbsp;&nbsp;7082103 |
| &nbsp;&nbsp;&nbsp; Mobile games |  | &nbsp;&nbsp;35383302 | &nbsp;&nbsp;48633690 |
| Royalties & License fees |  | &nbsp;&nbsp;141099580 | &nbsp;&nbsp;122883827 |
| &nbsp;&nbsp;&nbsp;&nbsp;Online games |  | &nbsp;&nbsp;30458406 | &nbsp;&nbsp;29395858 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mobile games |  | &nbsp;&nbsp;110641174 | &nbsp;&nbsp;93487969 |
| Others |  | &nbsp;&nbsp;2176291 | &nbsp;&nbsp;703205 |
|  |  | &nbsp;&nbsp;186120945 | &nbsp;&nbsp;179302825 |
| Major geographic market |  |  |  |
| &nbsp;&nbsp;Taiwan |  | &nbsp;&nbsp;39416747 | &nbsp;&nbsp;35999911 |
| &nbsp;&nbsp;Korea |  | &nbsp;&nbsp;27432485 | &nbsp;&nbsp;41978248 |
| &nbsp;&nbsp;Thailand |  | &nbsp;&nbsp;14940379 | &nbsp;&nbsp;17870330 |
| &nbsp;&nbsp;Japan |  | &nbsp;&nbsp;26839412 | &nbsp;&nbsp;17417846 |
| &nbsp;&nbsp;United States of America |  | &nbsp;&nbsp;8787987 | &nbsp;&nbsp;4658647 |
| &nbsp;&nbsp;Philippines |  | &nbsp;&nbsp;14777585 | &nbsp;&nbsp;15384318 |
| &nbsp;&nbsp;Indonesia |  | &nbsp;&nbsp;14128912 | &nbsp;&nbsp;3687011 |
| &nbsp;&nbsp;Malaysia |  | &nbsp;&nbsp;2582075 | &nbsp;&nbsp;3806480 |
| &nbsp;&nbsp;China |  | &nbsp;&nbsp;10888100 | &nbsp;&nbsp;15520914 |
| &nbsp;&nbsp;Brazil |  | &nbsp;&nbsp;4128262 | &nbsp;&nbsp;6812422 |
| &nbsp;&nbsp;Hongkong |  | &nbsp;&nbsp;3708233 | &nbsp;&nbsp;44189 |
| &nbsp;&nbsp;Others |  | &nbsp;&nbsp;18490768 | &nbsp;&nbsp;16122509 |
|  |  | &nbsp;&nbsp;186120945 | &nbsp;&nbsp;179302825 |
| Timing of satisfaction of performance obligations |  |  |  |
| At a point in time |  | &nbsp;&nbsp;437821 | &nbsp;&nbsp;13902 |
| &nbsp;&nbsp;Over time |  | &nbsp;&nbsp;185683124 | &nbsp;&nbsp;179288923 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;186120945 | &nbsp;&nbsp;179302825 |

---

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**15. Revenue from Contracts with Customers, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(2) Accounts receivable, incremental costs of obtaining a contract and contract liabilities related to contracts with customers as of December 31, 2025 and December 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025** | **December 31, 2024** |
| Accounts receivable | &nbsp;&nbsp;W | &nbsp;&nbsp;28536382 | &nbsp;&nbsp;35651270 |
| Incremental costs of obtaining a contract (Prepaid expenses) |  | &nbsp;&nbsp;163828 | &nbsp;&nbsp;352040 |
| Contact liabilities (Deferred revenue) |  | &nbsp;&nbsp;5614150 | &nbsp;&nbsp;8261474 |
| &nbsp;&nbsp;&nbsp;Micro transaction & Subscription revenue |  | &nbsp;&nbsp;3555707 | &nbsp;&nbsp;4234981 |
| &nbsp;&nbsp;&nbsp;Royalties and License fees |  | &nbsp;&nbsp;2052605 | &nbsp;&nbsp;4021493 |
| &nbsp;&nbsp;&nbsp;Other revenue |  | &nbsp;&nbsp;5838 | &nbsp;&nbsp;5000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(3)Contract Liabilities The amount of revenue recognized from contract liabilities of the previous period is KRW 5,686,274 thousand in the current period (previous period: KRW 4,286,132 thousand), and it consists of paid contents of KRW 4,234,981 thousand, licenses of KRW 1,449,631 thousand, and others of KRW 1,662 thousand (previous period: paid contents of KRW 3,640,941 thousand and licenses of KRW 645,191 thousand).

&nbsp;&nbsp;&nbsp;&nbsp; (4) Transaction price allocated to unsatisfied performance obligations as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025** | **December 31, 2024** |
| Micro transaction & Subscription revenue | &nbsp;&nbsp;W | &nbsp;&nbsp;3555707 | &nbsp;&nbsp;4234981 |
| &nbsp;&nbsp;&nbsp;&nbsp;Online games |  | &nbsp;&nbsp;2930670 | &nbsp;&nbsp;2966391 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mobile games |  | &nbsp;&nbsp;625037 | &nbsp;&nbsp;1268590 |
| Royalties and License fees |  | &nbsp;&nbsp;2052605 | &nbsp;&nbsp;4021493 |
| &nbsp;&nbsp;&nbsp;&nbsp;Online games |  | &nbsp;&nbsp;58375 | &nbsp;&nbsp;432523 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mobile games |  | &nbsp;&nbsp;1994230 | &nbsp;&nbsp;3588970 |
| Other revenue |  | &nbsp;&nbsp;5838 | &nbsp;&nbsp;5000 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;5614150 | &nbsp;&nbsp;8261474 |

---

The Company's management expects to recognize 92.7% (W5,204,398 thousand) of the transaction price allocated to contracts that have not been performed as of December 31, 2025 as revenue within 12 months. The remaining 7.3% (W409,752 thousand) is expected to be recognized as revenue thereafter. The amounts disclosed above do not include variable consideration which is constrained.

&nbsp;&nbsp;&nbsp;&nbsp;(5) Details of incremental costs of obtaining a contract recognized as assets as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025** | **December 31, 2024** |
| Incremental costs of obtaining a contract | &nbsp;&nbsp;W | &nbsp;&nbsp;163828 | &nbsp;&nbsp;352040 |
| Amortization costs recognized as cost of revenue |  | &nbsp;&nbsp;352040 | &nbsp;&nbsp;255003 |

---

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**16. Classification of expenses by nature**

Details of classification of expenses by nature for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2024** |
| Fees and commissions | &nbsp;&nbsp;W | &nbsp;&nbsp;62925586 | &nbsp;&nbsp;66427377 |
| Advertising expenses |  | &nbsp;&nbsp;16014777 | &nbsp;&nbsp;9643942 |
| Salaries |  | &nbsp;&nbsp;32843509 | &nbsp;&nbsp;28996658 |
| Outsourcing expenses |  | &nbsp;&nbsp;16784611 | &nbsp;&nbsp;17318605 |
| Rent |  | &nbsp;&nbsp;1028672 | &nbsp;&nbsp;989144 |
| Employee benefits |  | &nbsp;&nbsp;2679590 | &nbsp;&nbsp;2328942 |
| Post-employment benefits |  | &nbsp;&nbsp;2015951 | &nbsp;&nbsp;1873075 |
| Depreciation |  | &nbsp;&nbsp;2268430 | &nbsp;&nbsp;2537245 |
| Amortization |  | &nbsp;&nbsp;3853149 | &nbsp;&nbsp;2519327 |
| Bad debt expenses |  | &nbsp;&nbsp;442 | &nbsp;&nbsp;29830 |
| Other expenses |  | &nbsp;&nbsp;2684151 | &nbsp;&nbsp;2448249 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;143098868 | &nbsp;&nbsp;135112394 |

---

Total expenses consist of cost of sales, selling, general and administrative expenses.

**17. Selling, general and administrative expenses**

Details of selling, general and administrative expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2024** |
| Fees and commissions | &nbsp;&nbsp;W | &nbsp;&nbsp;9012972 | &nbsp;&nbsp;7835387 |
| Advertising expenses |  | &nbsp;&nbsp;16014777 | &nbsp;&nbsp;9643942 |
| Salaries |  | &nbsp;&nbsp;17324650 | &nbsp;&nbsp;15134983 |
| Outsourcing expenses |  | &nbsp;&nbsp;1919799 | &nbsp;&nbsp;1162563 |
| Rent |  | &nbsp;&nbsp;634616 | &nbsp;&nbsp;607035 |
| Employee benefits |  | &nbsp;&nbsp;1816211 | &nbsp;&nbsp;1552039 |
| Post-employment benefits |  | &nbsp;&nbsp;891363 | &nbsp;&nbsp;867870 |
| Depreciation |  | &nbsp;&nbsp;1608718 | &nbsp;&nbsp;1925759 |
| Amortization |  | &nbsp;&nbsp;1261659 | &nbsp;&nbsp;1294494 |
| Bad debt expenses |  | &nbsp;&nbsp;442 | &nbsp;&nbsp;29830 |
| Research and development |  | &nbsp;&nbsp;11922638 | &nbsp;&nbsp;13622253 |
| Others |  | &nbsp;&nbsp;2061821 | &nbsp;&nbsp;1915411 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;64469666 | 55591566 |

---

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**18. Finance Income and Costs**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Details of finance income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2024** |
| **Finance income** |  |  |  |
| Interest income | &nbsp;&nbsp;W | &nbsp;&nbsp;11385337 | &nbsp;&nbsp;11819137 |
| Unrealized foreign currency gain |  | &nbsp;&nbsp;1239070 | &nbsp;&nbsp;2090788 |
| Gain on foreign currency transactions |  | &nbsp;&nbsp;5348534 | &nbsp;&nbsp;6137195 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;17972941 | &nbsp;&nbsp;20047120 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(2) Details of finance costs for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2024** |
| **Finance costs** |  |  |  |
| Interest expense | &nbsp;&nbsp;W | &nbsp;&nbsp;155037 | 82554 |
| Unrealized foreign currency loss |  | &nbsp;&nbsp;698537 | 789046 |
| Loss on foreign currency transactions |  | &nbsp;&nbsp;4829964 | 4176484 |
|  | &nbsp;&nbsp;W | 5683538 | 5048084 |

---

**19. Other Non-Operating Income and Expenses**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Details of other non-operating income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2024** |
| Gain on disposal of property and equipment | &nbsp;&nbsp;W | &nbsp;&nbsp;1387 | &nbsp;&nbsp;977 |
| Reversal of impairment loss on investments in subsidiaries |  | &nbsp;&nbsp;10580150 | &nbsp;&nbsp;- |
| Dividend income |  | &nbsp;&nbsp;44937205 | &nbsp;&nbsp;43120174 |
| Others |  | &nbsp;&nbsp;1596823 | &nbsp;&nbsp;1024474 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;57115565 | &nbsp;&nbsp;44145625 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(2) Details of other non-operating expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2024** |
| Loss on disposal of property and equipment | &nbsp;&nbsp;W | &nbsp;&nbsp;- | &nbsp;&nbsp;6050 |
| Loss on disposal of on intangible assets |  | &nbsp;&nbsp;4459 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -  |
| Impairment loss on intangible assets |  | &nbsp;&nbsp;29111 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 410144 |
| Impairment loss on other non-current assets(\*) |  | &nbsp;&nbsp;838417 | &nbsp;&nbsp;572230 |
| Impairment Losses on investments in subsidiaries |  | &nbsp;&nbsp;13403000 | &nbsp;&nbsp;- |
| Others |  | &nbsp;&nbsp;6695 | &nbsp;&nbsp;1157 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;14281682 | &nbsp;&nbsp;989581 |

---

(\*) The Company recognized an impairment loss as the recoverable amount was less than the book value of minimum guaranteed royalties for the game in service.

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**20. Income tax expense** 

&nbsp;&nbsp;&nbsp;&nbsp;(1) Details of income tax expense for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | &nbsp;&nbsp;&nbsp;**2025** | **2024** |
| Current tax expense |  |  |  |
| &nbsp;&nbsp;&nbsp;Current year | W | 15938955 | 13888982 |
| Deferred tax expense |  |  |  |
| &nbsp;&nbsp;&nbsp;Changes in net deferred tax assets |  | (614326) | 564174 |
| Income tax expense  | &nbsp;&nbsp;W  | 15324629 | 14453156 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(2) The differences between the tax expense on the Company's profit before tax and the amount that would arise using the statutory tax rates applicable to profits of the entities are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2024** |
| Profit before income tax expense | &nbsp;&nbsp;W | &nbsp;&nbsp;98145363 | &nbsp;&nbsp;102345512 |
| Income tax using the statutory tax rate |  | &nbsp;&nbsp;22209579 | &nbsp;&nbsp;23179813 |
| Adjustments: |  |  |  |
| &nbsp;&nbsp;Expenses not deductible for tax purposes |  | &nbsp;&nbsp;8428 | &nbsp;&nbsp;472719 |
| &nbsp;&nbsp;Non taxable income |  | &nbsp;&nbsp;(10231415) | &nbsp;&nbsp;(9493229) |
| &nbsp;&nbsp;Foreign tax payment |  | &nbsp;&nbsp;3902727 | &nbsp;&nbsp;3456615 |
| &nbsp;&nbsp;Tax credit |  | &nbsp;&nbsp;(1420570) | &nbsp;&nbsp;(1401333) |
| &nbsp;&nbsp;Corporate tax on unappropriated earnings |  | &nbsp;&nbsp;- | &nbsp;&nbsp;94943 |
| &nbsp;&nbsp;Others |  | &nbsp;&nbsp;855880 | &nbsp;&nbsp;(1856372) |
|  |  | &nbsp;&nbsp;(6884950) | &nbsp;&nbsp;(8726657) |
| Income tax expense | &nbsp;&nbsp;W | &nbsp;&nbsp;15324629 | &nbsp;&nbsp;14453156 |
| Effective tax rate |  | &nbsp;&nbsp;16% | &nbsp;&nbsp;14% |

---

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**20. Income tax expense, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(3)Details of the changes in deferred tax assets (liabilities) for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| *(In thousands of won)* |  | **Beginning** <br>**balance** | **Increase**<br>**(Decrease)** | **Ending**<br>**balance** | **Beginning** <br>**balance** | **Increase**<br>**(Decrease)** | **Ending**<br>**balance** |
| &nbsp;&nbsp;Accrued income | &nbsp;&nbsp;&nbsp;W | (974020) | 106123 | (867897) | (654585) | (319435) | (974020) |
| &nbsp;&nbsp;Property and equipment |  | 67243  | (11080) | 56163 | 50096  | 17147  | 67243  |
| &nbsp;&nbsp;Intangible assets |  | 81954  | 33284 | 115238 | 663339  | (581385) | 81954  |
| &nbsp;&nbsp;Accounts Payable |  | 1170507  | (103286) | 1067221 | 853592  | 316915  | 1170507  |
| &nbsp;&nbsp;Accrued expenses |  | 277193  | (23339) | 253854 | 255603  | 21590  | 277193  |
| Retirement benefit provision liabilities |  | 31150  | 5032 | 36182 | 34634 | (3484) | 31150  |
| &nbsp;&nbsp;Allowance for doubtful accounts | &nbsp;&nbsp;Allowance for doubtful accounts | -  | - | - | 1092898 | (1092898) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;Asset retirement obligation |  | 77813  | 7211 | 85024 | 81970 | (4157) | 77813  |
| &nbsp;&nbsp;Disallowed foreign tax credit Carryforward |  | 411782 | 244213 | 655995 | 915518  | (503736) | 411782  |
| &nbsp;&nbsp;Others |  | 282909 | 220294 | 503203 | 539429  | (256520) | 282909  |
| Sub-total(Ⅰ) | W | 1426531 | 478452 | 1904983 | 3832494 | (2405963) | 1426531 |
| Deferred tax due to tax credit <br>carry-forward(Ⅱ) |  | 2077705 | 135874 | 2213579 | 235916  | 1841789  | 2077705 |
| Deferred tax assets (Ⅰ+Ⅱ+Ⅲ) (\*) | W | 3504236 | 614326 | 4118562 | 4068410 | (564174) | 3504236 |

---

(\*) The future realizability of deferred tax assets is assessed by taking into consideration various factors such as the Company's performance, the overall economic environment and industry outlook, expected future earnings, and deductible period of tax credit carry-forward. The Company periodically monitors those factors used in assessing the realizability of the deferred tax assets. As of December 31, 2025, the Company has recognized deferred tax assets related to temporary differences, carry-forward losses and tax credit carry-forward, which can be utilized based on the likelihood of future taxable income. This amount may change if the estimate for future taxable income changes.

&nbsp;&nbsp;&nbsp;&nbsp;(4) The gross balances of deferred tax assets and liabilities for the years ended December 31, 2025 and 2024, is as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2024** |
| Deferred tax assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;- Deferred tax assets to be recovered after more than 12 months | W | 1197030 | 1498357 |
| &nbsp;&nbsp;&nbsp;&nbsp;- Deferred tax assets to be recovered within 12 months |  | 5041106 | 4705577 |
| Sub-total |  | 6238136 | 6203934 |
| Deferred tax liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;- Deferred tax liabilities to be recovered after more than 12 months |  | (849890) | (1018770) |
| &nbsp;&nbsp;&nbsp;&nbsp;- Deferred tax liabilities to be recovered within 12 months |  | (1269684) | (1680928) |
| Sub-total |  | (2119574) | (2699698) |
| Deferred tax assets (liabilities), net | W | 4118562 | 3504236 |

---

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**20. Income tax expense, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(5) As of December 31, 2025, the Company did not recognize deferred income tax asset for the temporary difference of **W** 24,986,086 thousand relating to investments in subsidiaries as it is not probable such temporary differences can be utilized in the foreseeable future.

&nbsp;&nbsp;&nbsp;&nbsp;(6) The impact of the global minimum tax

Under Pillar Two legislation, the Company is required to pay additional tax for the difference between the GloBE effective tax rate of each jurisdiction in which its constituent entities are located and the minimum tax rate of 15%. Except for Gravity Game Vision Limited, which operates in Hong Kong, all entities within the consolidated group have GloBE effective tax rates exceeding 15% in their respective jurisdictions. In the case of additional tax incurred in Hong Kong, it is paid directly to the Hong Kong tax authorities following the introduction of the QDMTT in that jurisdiction, and thus there is no additional Pillar Two-related tax for the Company to recognize as income tax expense in the current period. Meanwhile, the exception for the recognition and disclosure of related deferred tax assets and liabilities has been applied.

**21. Cash flow information**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Adjustments for calculating cash generated from operations for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2024** |
| Adjustments for: |  |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation | &nbsp;&nbsp;W | &nbsp;&nbsp;2268430 | &nbsp;&nbsp;2537245  |
| &nbsp;&nbsp;&nbsp;Amortization  |  | &nbsp;&nbsp;3853149 | &nbsp;&nbsp;2519327  |
| &nbsp;&nbsp;&nbsp;Bad debt expense |  | &nbsp;&nbsp;442 | &nbsp;&nbsp;29830  |
| &nbsp;&nbsp;&nbsp;Interest expense |  | &nbsp;&nbsp;155037 | &nbsp;&nbsp;82554  |
| &nbsp;&nbsp;&nbsp;Unrealized foreign currency loss |  | &nbsp;&nbsp;698537 | &nbsp;&nbsp;789046  |
| &nbsp;&nbsp;&nbsp;Impairment loss on intangible assets |  | &nbsp;&nbsp;29111 | &nbsp;&nbsp;410144 |
| &nbsp;&nbsp;&nbsp;Loss on disposal of on intangible assets |  | &nbsp;&nbsp;4459 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Loss on disposal of on property and equipment |  | &nbsp;&nbsp;- | &nbsp;&nbsp;6050 |
| &nbsp;&nbsp;&nbsp;Impairment Losses on investments in subsidiaries |  | &nbsp;&nbsp;13403000 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Impairment loss on other non-current assets |  | &nbsp;&nbsp;838417 | &nbsp;&nbsp;572230 |
| &nbsp;&nbsp;&nbsp;Retirement benefit expenses |  | &nbsp;&nbsp;14513 | &nbsp;&nbsp;(5703) |
| &nbsp;&nbsp;&nbsp;Income tax expense |  | &nbsp;&nbsp;15324629 | &nbsp;&nbsp;14453156  |
| &nbsp;&nbsp;&nbsp;Unrealized foreign currency gain |  | &nbsp;&nbsp;(1239070) | &nbsp;&nbsp;(2090788) |
| &nbsp;&nbsp;&nbsp;Gain on disposal of property and equipment |  | &nbsp;&nbsp;(1387) | (977) |
| &nbsp;&nbsp;&nbsp;Interest income |  | &nbsp;&nbsp;(11385337) | &nbsp;&nbsp;(11819137) |
| &nbsp;&nbsp;&nbsp;Dividend income |  | &nbsp;&nbsp;(44937205) | &nbsp;&nbsp;(43120174) |
| &nbsp;&nbsp;&nbsp;Reversal of impairment loss on investments in subsidiaries |  | &nbsp;&nbsp;(10580150) | &nbsp;&nbsp;- |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;(31553425) | &nbsp;&nbsp;(35637197) |

---

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**21. Cash flow information, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(2) Changes in assets and liabilities arising from operating activities for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2024** |
| Accounts receivable | &nbsp;&nbsp;W  | &nbsp;&nbsp;6578474 | &nbsp;&nbsp;(2716044) |
| Other receivables |  | &nbsp;&nbsp;118170 | &nbsp;&nbsp;(1396954) |
| Other non-current assets |  | &nbsp;&nbsp;(4404643) | &nbsp;&nbsp;(1636627) |
| Prepaid expenses |  | &nbsp;&nbsp;(182573) | &nbsp;&nbsp;(78327) |
| Lease receivable |  | &nbsp;&nbsp;223772 | &nbsp;&nbsp;242393  |
| Accounts payable |  | &nbsp;&nbsp;(1841852) | &nbsp;&nbsp;(3020614) |
| Deferred revenue |  | &nbsp;&nbsp;(2694326) | &nbsp;&nbsp;859037 |
| Long-term Deferred revenue |  | &nbsp;&nbsp;(3409) | &nbsp;&nbsp;1323516  |
| Withholdings |  | &nbsp;&nbsp;(234279) | &nbsp;&nbsp;(400888) |
| Accrued expenses |  | &nbsp;&nbsp;(168483) | &nbsp;&nbsp;175947  |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;(2609149) | &nbsp;&nbsp;(6648561) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(3) Significant non-cash transactions for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| (In thousands of won) | W | **2025** | **2024** |
| Reclassification of Prepayment to intangible assets |  | &nbsp;&nbsp;&nbsp;&nbsp;129798  | 212220 |
| Acquisition of right-of-use assets |  | 471212 | 3492595 |
| Increase in accounts payable relating to the acquisition of other intangible assets |  | 724639 | 2390168 |
| Increase in accounts payable relating to the acquisition of software |  | 806770 | 292480 |
| Increase in accounts payable relating to the acquisition of other non-current assets |  | 4450200 | - |

---

&nbsp;&nbsp;&nbsp;&nbsp;(4) Changes in liabilities arising from financing activities for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2024** |
| Beginning of the year | &nbsp;&nbsp;W | &nbsp;&nbsp;5283983  | &nbsp;&nbsp;3083031  |
| Cash flows used in financial activities–payment of lease liabilities | Cash flows used in financial activities–payment of lease liabilities | &nbsp;&nbsp;(1873674) | &nbsp;&nbsp;(2069495) |
| Cash flows used in operating activities – Interest paid |  | &nbsp;&nbsp;(145197) | &nbsp;&nbsp;(77204) |
| Non-cash transactions: |  |  |  |
| &nbsp;&nbsp;&nbsp;Acquisitions – right-of-use asset |  | &nbsp;&nbsp;104477  | &nbsp;&nbsp;3492595  |
| &nbsp;&nbsp;&nbsp;Acquisitions – leases receivables |  | &nbsp;&nbsp;- | &nbsp;&nbsp;793666  |
| &nbsp;&nbsp;&nbsp;Interest expense |  | &nbsp;&nbsp;145197  | &nbsp;&nbsp;77204  |
| &nbsp;&nbsp;&nbsp;Other |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(15814) |
| Ending of the year | &nbsp;&nbsp;W | &nbsp;&nbsp;3514786  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5283983  |

---

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**22. Leases**

The Company leases offices, vehicles and others. The leases typically run for a period of 1 to 5 years with an option to renew or terminate the lease after that date. There are no restrictions or covenants imposed to leases, but the lease assets are not to be provided as collateral for borrowings.

The Company has a sublease for a portion of the existing lease contract.

&nbsp;&nbsp;&nbsp;&nbsp;(1) As a lessee

&nbsp;&nbsp;&nbsp;&nbsp; (a) Details of right-of-use assets and lease liabilities recognized in the separate statements of financial position as of December 31, 2025 and December 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025** | **December 31, 2024** |
| Right-of-use assets(\*1) |  |  |  |
| &nbsp;&nbsp;Offices | &nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;&nbsp;3114020 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3794795  |
| &nbsp;&nbsp;Vehicles |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 121449  |
| &nbsp;&nbsp;Others |  | &nbsp;&nbsp;&nbsp;&nbsp;120965 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 611543  |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;&nbsp;3234985 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4527787  |
| Lease liabilities(\*2) |  |  |  |
| &nbsp;&nbsp;Current |  | &nbsp;&nbsp;&nbsp;&nbsp;1338395 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1869453  |
| &nbsp;&nbsp;Non-current |  | &nbsp;&nbsp;&nbsp;&nbsp;2176391 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3414530  |
|  | &nbsp;&nbsp;W  | &nbsp;&nbsp;&nbsp;&nbsp;3514786 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5283983  |

---

(\*1) Right-of-use assets are included in the 'Property and equipment' in the separate statement of financial position.

(\*2) Lease liabilities are included in the 'Other current liabilities' and 'Other non-current liabilities' in the separate statement of financial position.

&nbsp;&nbsp;&nbsp;&nbsp; (b) Changes in right-of-use assets for the years ended December 31, 2025 and December 31, 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Offices** | **Vehicles** | **Others** | **Total** |
| Balance as of January 1, 2025 | W | 3794795 | 121449 | 611543 | 4527787 |
| Depreciation |  | (1151986) | (121449) | (490579) | (1764014) |
| Reassessment |  | 157775 | - | - | 157775 |
| Acquisitions |  | 313437 | - | - | 313437 |
| Balance as of December 31, 2025 | W | 3114021 | - | 120964 | 3234985 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Offices** | **Vehicles** | **Others** | **Total** |
| Balance as of January 1, 2024 | W | 1508656  | 367030  | 1103467  | 2979153  |
| Depreciation |  | (1206457) | (245581) | (491924) | (1943962) |
| Acquisitions |  | 3492596  | -  | -  | 3492596  |
| Balance as of December 31, 2024 | W | 3794795  | 121449  | 611543  | 4527787  |

---

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**22. Leases, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(1) As a lessee, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(c) Details of amounts recognized in the separate statements of comprehensive income for the years ended December 31, 2025 and December 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2024** |
| Interest expense relating to lease liabilities (included in finance cost) | W | 145197 | 77204 |
| Income from sub-lease of right-of-use asset |  | 22677 | 4056 |
| Expense relating to short-term leases |  | - | - |
| Expense relating to leases of low-value assets excluding short-term leases |  | 15840 | 11446 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(d) Details of amounts recognized in the separate statement of cash flows for the years ended December 31, 2025 and December 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | &nbsp;&nbsp;**2024** |
| Total cash outflows of leases | &nbsp;&nbsp;W | &nbsp;&nbsp;2034711 | &nbsp;&nbsp;&nbsp;&nbsp;2158144 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(2) As a lessor

The Company has sub-leased part of its right-of-use assets. The Company recognized interest income related to the lease receivable amounting to W22,677 thousand for the year ended December 31, 2025.

The aging analysis with the amounts expressed in undiscounted lease receivables after the reporting date are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* | *(In thousands of won)* | *(In thousands of won)* | *(In thousands of won)* |  |  |  |
|  | **Less than**<br>**1 Year** | **1 to 2 Years** | **2 to 5 Years** | **Contractual** <br>**cash flow** | **Unrealized financial income** | **Net investment in the lease** |
| W  | &nbsp;&nbsp;&nbsp;&nbsp;216978 | 211084 | 211084 | 639146 | 187046 | 452100 |

---

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**23. Financial Risk Management**

The Company's operating activities expose itself to a variety of financial risks: market risk, credit risk and liquidity risk from which the Company's risk management program focuses on minimizing any adverse effects on its financial performance. The Company operates financial risk management policies and programs that closely monitor and respond to each risk factor.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Capital Risk Management

The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern, so the Company can continue to provide returns and benefits for shareholders and to maintain an optimal capital structure to reduce the cost of capital. The Company monitors capital on the basis of the debt ratio. This ratio is calculated as total debt divided by total capital. The debt ratios as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025** | **December 31, 2024** |
| Total liabilities | &nbsp;&nbsp;W | &nbsp;&nbsp;38165030 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 43443153  |
| Total equity |  | &nbsp;&nbsp;501474469 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;418653735  |
| Debt ratio |  | &nbsp;&nbsp;8% | &nbsp;&nbsp;10% |

---

&nbsp;&nbsp;&nbsp;&nbsp; (2) Market Risk

&nbsp;&nbsp;&nbsp;&nbsp;(a) Foreign exchange risk

The Company is exposed to foreign exchange risk arising from royalty revenues and commission payment primarily with respect to the US dollar etc. The Company's financial assets and liabilities are exposed to foreign currency risk as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;*(In thousands of won, in foreign currencies)* | &nbsp;&nbsp;*(In thousands of won, in foreign currencies)* | &nbsp;&nbsp;*(In thousands of won, in foreign currencies)* | &nbsp;&nbsp;*(In thousands of won, in foreign currencies)* | &nbsp;&nbsp;*(In thousands of won, in foreign currencies)* | &nbsp;&nbsp;*(In thousands of won, in foreign currencies)* |
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Assets in foreign** <br>**Currency** | **Liabilities in foreign currency** | **Assets in** <br>**Korean Won** | **Assets in** <br>**Korean Won** | **Liabilities in Korean Won** |
| USD | 31125581 | 8071445 | 44662528 | 44662528 | 11581746 |
| JPY | 667752426 | 275931458 | 6127497 | 6127497 | 2532030 |
| EUR | 27179 | 35543 | 45815 | 45815 | 59915 |
| VND | 6026400 | - | 329 | 329 | - |
| THB | 21131 | - | 964 | 964 | - |
| IDR | 9851056 | - | 843 | 843 | - |
|  |  |  | w  | 50837976 | 14173691 |

---

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**23. Financial Risk Management, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(2) Market Risk, Continued

&nbsp;&nbsp;&nbsp;&nbsp;(a) Foreign exchange risk, Continued

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;*(In thousands of won, in foreign currencies)* | &nbsp;&nbsp;*(In thousands of won, in foreign currencies)* | &nbsp;&nbsp;*(In thousands of won, in foreign currencies)* | &nbsp;&nbsp;*(In thousands of won, in foreign currencies)* | &nbsp;&nbsp;*(In thousands of won, in foreign currencies)* | &nbsp;&nbsp;*(In thousands of won, in foreign currencies)* |
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Assets in foreign** <br>**currency** | **Liabilities in**<br> **foreign currency** |  | **Assets in** <br>**Korean Won** | **Liabilities in Korean Won** |
| USD | 26872947  | 9511027  |  | 39503233  | 13980784  |
| JPY | 517686951  | 107933859  |  | 4848035  | 1010779  |
| EUR | 27925  | 32910  |  | 42689  | 50310  |
| IDR | 9270000  | 3243600  |  | 535  | 187  |
| THB | 29941192  | 7379  |  | 1287471  | 317  |
| VND | 12955000  | 3103944  |  | 1180  | 283  |
|  |  |  | W | 45683143 | 15042660 |

---

The Company measures foreign exchange risk at the exchange rate of 10% for each foreign currency, and the rate of change reflects the management's assessment of the risk of exchange rate fluctuation that can be reasonably experienced. The effects of changes in foreign currency exchange rate on profit before income tax for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2025** | **2024** | **2024** |
|  |  | **Increased by 10%** | **Decreased by 10%** | **Increased by 10%** | **Decreased by 10%** |
| USD | W | 3308078 | (3308078) | 2552245  | (2552245) |
| JPY |  | 359547 | (359547) | 383726  | (383726) |
| Others |  | (1196) | 1196 | 128078  | (128078) |
|  | W | 3666429 | (3666429) | 3064049  | (3064049) |

---

The sensitivity analysis is based on monetary assets and liabilities denominated in foreign currencies other than the functional currency at the end of the reporting period.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Interest rate risk

There are no borrowings under variable interest rate conditions as of December 31, 2025 and 2024.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Price risk

There are no assets and liabilities exposed to price risk as of December 31, 2025 and 2024.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Credit Risk

Credit risk arises from normal trading and investing activities and occurs when a customer or a counterparty fails to comply with the terms of the contract. In order to manage these credit risks, the Company regularly evaluates the creditworthiness of customers based on their financial condition, past experiences and other factors.

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**23. Financial Risk Management, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(3) Credit Risk, Continued

The carrying amounts of financial assets represent their maximum exposure to credit risk.

The maximum exposure to credit risk of the Company as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **December 31, 2025** | **December 31, 2024** |
| Cash and cash equivalents | &nbsp;&nbsp;W | &nbsp;&nbsp;30553616 | &nbsp;&nbsp;64263198  |
| Short-term financial instruments |  | &nbsp;&nbsp;389000000 | &nbsp;&nbsp;278000000  |
| Accounts receivable, net |  | &nbsp;&nbsp;28536382 | &nbsp;&nbsp;35651270  |
| Other receivables, net |  | &nbsp;&nbsp;3385229 | &nbsp;&nbsp;3290165  |
| Other current financial assets |  | &nbsp;&nbsp;3945138 | &nbsp;&nbsp;5897585  |
| Oher non-current financial assets |  | &nbsp;&nbsp;3342526 | &nbsp;&nbsp;1999836  |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;458762891 | &nbsp;&nbsp;389102054  |

---

Cash and cash equivalents and short-term financial instruments are deposited in financial institutions with strong credit ratings. Accounts receivable is mainly due from payment processing companies and platform service providers, which the Company believes have low levels of credit risk.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Liquidity Risk

Liquidity risk management includes the maintenance of sufficient cash and marketable securities, the availability of funds from appropriately committed credit lines, and the ability to settle market positions. The cash flows included in the maturity classification, based on the remaining period to the contractual maturity date, are undiscounted expected cash outflows. The amount due within 12 months is the same as the carrying amount since the effect of the discount is not material. The following table summarizes the financial liabilities of the Company by maturity according to the remaining period from the end of the reporting period to the contractual maturity date.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Carrying<br>value** | **Less than**<br>**3 months** | **3 months to** <br>**1 year** | **1 to 2 years** | **2 to 4 years** | **Total** |
| Accounts payable | W | &nbsp;&nbsp;&nbsp;&nbsp;18926050 | 17724920 | 578385 | 622745 | - | 18926050 |
| Other liabilities (\*) |  | &nbsp;&nbsp;&nbsp;&nbsp;3754654 | 449014 | 979050 | 1248170 | 1232335 | 3908569 |
|  | W | &nbsp;&nbsp;&nbsp;&nbsp;22680704 | 18173934 | 1557435 | 1870915 | 1232335 | 22834619 |

---

(\*) Other liabilities as of December 31, 2025 consist of lease deposits received and lease liabilities.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Carrying<br>value** | **Less than**<br>**3 months** | **3 months to** <br>**1 year** | **1 to 2 years** | **2 to 3 years** | **Total** |
| Accounts payable | W | &nbsp;&nbsp;&nbsp;&nbsp;18813618 | 18418510 | 175000 | 220108 | -  | 18813618 |
| Other liabilities (\*) |  | &nbsp;&nbsp;&nbsp;&nbsp;5523852 | 513629 | 1500742 | 1374064 | 2431004 | 5819439 |
|  | W | &nbsp;&nbsp;&nbsp;&nbsp;24337470 | 18932139 | 1675742 | 1594172 | 2431004 | 24633057 |

---

(\*) Other liabilities as of December 31, 2024 consist of lease deposits received and lease liabilities.

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**24. Related Party Transactions**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Related parties of the Company include entities and individuals capable of exercising control or significant influence over the Company and its subsidiaries. Related parties include Gung Ho Online Entertainment, Inc. and its subsidiaries, management and their immediate families.

Ownership interests in subsidiaries as of December 31, 2025 and 2024 are as follows:

---

| | | |
|:---|:---|:---|
| **Name of entity** | **Percentage of ownership (%)** | **Percentage of ownership (%)** |
| **Name of entity** | **December 31, 2025** | **December 31, 2024** |
| Gravity Interactive, Inc. | 100.00 | 100.00 |
| Gravity NeoCyon, Inc. | 100.00 | 100.00 |
| Gravity Communications Co., Ltd. | 100.00 | 100.00 |
| PT. Gravity Game Link. | 70.00 | 70.00 |
| Gravity Game Tech Co., Ltd. | 100.00 | 100.00 |
| Gravity Game Arise Co., Ltd. | 100.00 | 100.00 |
| Gravity Game Hub PTE., Ltd. | 100.00 | 100.00 |
| Gravity Game Vision Limited. | 100.00 | 100.00 |
| Gravity Game Unite SDN.BHD.(\*) | 100.00 | - |

---

(\*1) Gravity Game Unite SDN. BHD. was newly established in March of the current year and has been included in the consolidated subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Account balances with related parties

Balances of receivables and payables with related parties as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* | *(In thousands of won)* |  | **31-Dec-25** | **31-Dec-25** | **31-Dec-24** | **31-Dec-24** |
| **Related party** | **Name of entity** |  | **Receivables** | **Payables** | **Receivables** | **Payables**  |
| Parent company | GungHo Online Entertainment, Inc. | W | 1462997 | 2700 | 3240472 | 2755 |
| Others | GungHo Online Entertainment America. |  | 1016 | 773 | 573 | 97210 |
| Subsidiaries | Gravity Interactive, Inc. |  | 4265138 | 43555 | 2210555 | 154346 |
| Subsidiaries | Gravity NeoCyon, Inc. |  | 654894 | 1135081 | 245600 | 1617933 |
| Subsidiaries | Gravity Communications Co., Ltd. |  | 766117 | 1173556 | 684193 | 889384 |
| Subsidiaries | PT. Gravity Game Link. |  | 17494 | 21483 | 65658 | 19385 |
| Subsidiaries | Gravity Game Tech Co., Ltd. |  | 2089413 | 365130 | 3764723 | 194022 |
| Subsidiaries | Gravity Game Arise Co., Ltd. |  | 3365026 | 2140529 | 104986 | 490422 |
| Subsidiaries | Gravity Game Hub PTE., Ltd. |  | 1226749 | 19491 | 1377730 | 4213 |
| Subsidiaries | Gravity Game Vision Limited |  | 4534036 | 60408 | 5711693 | 921 |
| Subsidiaries | Gravity Game Unite SDN.BHD. |  | 81355 | 883 | - | - |
|  |  | W | 18464235 | 4963589 | 17406183 | 3470591 |

---

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**24. Related Party Transactions, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(3) Transactions with related parties

The details of transactions with related parties for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In thousands of won)* | *(In thousands of won)* | **2025** | **2025** | **2025** |
|  |  |  | **Revenues** | **Revenues** |
| **Related party** | **Name of entity** |  | **Royalty** | **Other** |
| Parent company | GungHo Online Entertainment, Inc. | W | 21346669 | 149808 |
| Others | GungHo Online Entertainment America |  | 7241 | - |
| Subsidiaries | Gravity Interactive, Inc. |  | 43180175 | 17543 |
| Subsidiaries | Gravity NeoCyon, Inc. |  | 8 | 1007274 |
| Subsidiaries | Gravity Communications Co., Ltd. (\*1) |  | 8888544 | 1974385 |
| Subsidiaries | PT. Gravity Game Link. |  | 262676 | 16898 |
| Subsidiaries | Gravity Game Tech Co., Ltd. |  | 8367134 | 7330510 |
| Subsidiaries | Gravity Game Arise Co., Ltd. |  | 126935 | 42068 |
| Subsidiaries | Gravity Game Hub PTE., Ltd. |  | 6098636 | 14407633 |
| Subsidiaries | Gravity Game Vision Limited. |  | 10119458 | 22360590 |
| Subsidiaries | Gravity Game Unite SDN.BHD. |  | - | 1767 |
|  |  | W | 98397476 | 47308476 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* | *(In thousands of won)* |  | **2025** | **2025** | **2025** |
|  |  |  | **Purchases** | **Purchases** | **Purchases** |
| **Related party** | **Name of entity** |  | **Royalty** | **Commission** | **Other** |
| Parent company | GungHo Online Entertainment, Inc. | W | - | - | 16764 |
| Others | GungHo Online Entertainment America |  | 10093 | - | - |
| Subsidiaries | Gravity Interactive, Inc. |  | - | 228889 | - |
| Subsidiaries | Gravity NeoCyon, Inc. |  | - | 9461353 | 9779 |
| Subsidiaries | Gravity Communications Co., Ltd.  |  | - | 3966471 | - |
| Subsidiaries | PT. Gravity Game Link. |  | - | 85167 | - |
| Subsidiaries | Gravity Game Tech Co., Ltd. |  | - | - | - |
| Subsidiaries | Gravity Game Arise Co., Ltd. |  | - | 3672880 | 9648231 |
|  | Gravity Game Hub PTE., Ltd. |  | - | - | 10565 |
|  | Gravity Game Vision Limited. |  | - | - | - |
|  | Gravity Game Unite SDN.BHD. |  | - | - | - |
|  |  | W | 10093 | 17414760 | 9685339 |

---

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GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**24. Related Party Transactions, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(3) Transactions with related parties, Continued

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| | | | | |
|:---|:---|:---|:---|:---|
| *(In thousands of won)* | *(In thousands of won)* |  | **2024** | **2024** |
|  |  |  | **Revenues** | **Revenues** |
| **Related party** | **Name of entity** |  | **Royalty** | **Other** |
| Parent company | GungHo Online Entertainment, Inc. | W | 16550535 | - |
| Others | GungHo Online Entertainment America |  | 559 | - |
| Subsidiaries | Gravity Interactive, Inc. |  | 8471468 | 20988 |
| Subsidiaries | Gravity NeoCyon, Inc. |  | 9983 | 363144 |
| Subsidiaries | Gravity Communications Co., Ltd. (\*1) |  | 6127565 | 9298095 |
| Subsidiaries | PT. Gravity Game Link. |  | 127887 | 9108 |
| Subsidiaries | Gravity Game Tech Co., Ltd. |  | 7923077 | 10794544 |
| Subsidiaries | Gravity Game Arise Co., Ltd. |  | 736752 | 15048 |
| Subsidiaries | Gravity Game Hub PTE., Ltd. |  | 9818028 | 12640 |
| Subsidiaries | Gravity Game Vision Limited. |  | 17655315 | 23418562 |
|  |  | W | 67421169 | 43932129 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* | *(In thousands of won)* |  | **2024** | **2024** | **2024** |
|  |  |  | **Purchases** | **Purchases** | **Purchases** |
| **Related party** | **Name of entity** |  | **Royalty** | **Commission** | **Other** |
| Parent company | GungHo Online Entertainment, Inc. | W | - | - | 15946 |
| Others | GungHo Online Entertainment America. |  | 92326 | - | 92331 |
| Subsidiaries | Gravity Interactive, Inc. |  | - | 790694 | 2949 |
| Subsidiaries | Gravity NeoCyon, Inc. |  | - | 8293146 | 6623 |
| Subsidiaries | Gravity Communications Co., Ltd.  |  | - | 3311719 | -  |
| Subsidiaries | PT. Gravity Game Link |  | - | 81750 | -  |
| Subsidiaries | Gravity Game Tech Co., Ltd. |  | - | -  | -  |
| Subsidiaries | Gravity Game Arise Co., Ltd. |  | - | 1553230 | 1966937 |
|  | Gravity Game Hub PTE., Ltd. |  | - | - | -  |
|  | Gravity Game Vision Limited. |  | - | - | -  |
|  |  | W | 92326 | 14030539 | 2084786 |

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(\*1) Other Revenues include dividend income of W44,937,205 thousand and W43,120,174 thousand received in 2025 and 2024, respectively.

------

GRAVITY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2025 and 2024

**24. Related Party Transactions, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;(4) Other transactions with related parties

Other transactions with related parties for the years ended December 31, 2025 and 2024 are as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In thousands of won)* | *(In thousands of won)* | *(In thousands of won)* |  | **Investments** | **Investments** |
| **Related party** |  | **Name of entity** |  | **2025** | **2024** |
| Subsidiaries |  | Gravity Game Arise Co., Ltd. | W | 1952740 | 7102180 |
|  |  | Gravity NeoCyon, Inc. |  | - | 2999994 |
|  |  | Gravity Game Tech Co., Ltd. |  | - | 3723000 |
|  | df | Gravity Game Unite SDN.BHD. |  | 729878 | - |

---

&nbsp;&nbsp;&nbsp;&nbsp;(5) Key management personnel compensation

The compensation given to key management personnel (registered directors) for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands of won)* |  | **2025** | **2024** |
| Salaries | &nbsp;&nbsp;W | 2,578,549 | &nbsp;&nbsp;2,184,113 |

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