KRAFTON (CEO Kim Chang-han) has resolved its legal risks after the plaintiff withdrew a lawsuit regarding contract fulfillment and damages filed by the former shareholder representative of its subsidiary, Unknown Worlds Entertainment.

KRAFTON announced on the 1st that the plaintiff had withdrawn the 'lawsuit for contract fulfillment and damages (Case No. C.A. No. 2025-0805-LWW).' The plaintiff is Fortis Advisors, LLC, the former shareholder representative for Unknown Worlds Entertainment.

The case was heard in the Delaware Court of Chancery in the United States, and the reason for the dismissal was a settlement reached between the parties. The withdrawal was filed on June 30 (U.S. local time), and KRAFTON officially confirmed the filing on July 1. Due to the settlement agreement, the specific settlement amount was not disclosed.

The legal dispute was sparked by disagreements between KRAFTON and its subsidiary, Unknown Worlds, regarding the release schedule and profit-sharing (earn-out) for their upcoming game. KRAFTON acquired Unknown Worlds, the developer of the 'Subnautica' series, in 2021 as part of its strategy to expand its global intellectual property (IP) portfolio.

The conflict surfaced on July 11, 2025, when Charlie Cleveland, former CEO of Unknown Worlds, revealed on Reddit that he had filed a lawsuit against KRAFTON. At the time, Cleveland expressed his frustration, stating, "We know in our hearts that the game is ready for early access," and adding that "the current game release is out of our control."

With this announcement of the lawsuit's withdrawal, KRAFTON has brought an end to the legal dispute in the U.S. that had been ongoing for nearly a year.

KRAFTON official explained, "KRAFTON, Inc., Unknown Worlds Entertainment, and key members including Ted Gill, Charlie Cleveland, and Max McGuire have reached a mutual settlement and agreed to dismiss all pending legal proceedings."

Also, KRAFTON stated, "Unknown Worlds and KRAFTON are focused on supporting 'Subnautica 2,' its Early Access journey to the full 1.0 release, and the global community that has made the franchise so special." Regarding the division of roles, the company added, "Unknown Worlds will continue leading development, with KRAFTON providing support to ensure the success of the game."