Webzen has officially disclosed its financial performance for the first quarter of 2026.

On the 12th, Webzen released its Q1 2026 figures. Revenue hit 39.3 billion KRW, a 5% drop compared to the same period last year. Operating profit took a sharper tumble, down 40% year-on-year to 5.3 billion KRW. However, net profit saw a massive 596% spike, reaching 8.8 billion KRW—though one should note this is largely due to a low base effect from last year’s temporary dip.

The overall revenue decline stems from a sluggish domestic performance, which fell to 19 billion KRW, approximately 20% lower than Q1 2025. On the flip side, international revenue climbed by 14%, proving to be a reliable cash cow. In fact, overseas markets now account for 52% of the total revenue, officially overtaking domestic earnings.

The domestic slump appears to be exacerbated by the 'Dragon Sword' saga that unfolded back in February. Webzen found itself in a bitter dispute with 'Hound 13', the developer of Dragon Sword, over the payment of the Minimum Guarantee (MG). When Webzen failed to pay 60% of the MG, Hound 13 moved to terminate the publishing contract. Consequently, Webzen had to issue full refunds to every single player who had spent money on the title.

Looking at the breakdown by game, the 'MU' series generated 24.5 billion KRW, marking a 17% decline. Conversely, R2 (4.1 billion KRW), Metin 2 (7.8 billion KRW), and Shot Online (1.1 billion KRW) showed some grit, climbing 18%, 42%, and 15% respectively.

Webzen claims it is scouting for new growth opportunities in international markets while doubling down on investments in new game development to regain its momentum.

Currently, Webzen is trying to pivot away from its heavy reliance on MMORPGs. They are actively working on 'Terbis', a collectible RPG developed in-house. The team has been busy building brand awareness, showcasing its '2D Japanese-animation style' at events like Comiket in Japan and various other domestic and international game shows.

Furthermore, 'Project D1', based on the hit webtoon 'I Became a Tyrant of a Defense Game', is also in active development. It promises to capture the 'exploration-city management-defense' loop of the original, all wrapped in a 2.5D pixel art aesthetic.

Webzen's specialized development subsidiaries are also working on several new titles, including a project based on the 'MU' IP powered by Unreal Engine 5, as the company refuses to abandon its core strength in the MMORPG market.

Webzen CEO Kim Tae-young stated, "We are continuing to invest both internally and externally in new game development to drive growth despite market uncertainties." He added, "While we navigate a difficult landscape marked by AI integration, internal and external risk management, and economic downturns, we remain committed to restoring market share and enhancing shareholder value through our solid financial foundation."