Controversy is growing after it emerged during court proceedings that Charlie Cleveland, former CEO and co-founder of Unknown Worlds, the studio behind the survival game Subnautica series, wrote an internal document that portrayed Korea negatively. The bonus dispute with Krafton is widening into an issue of racial and cultural disparagement.
According to the industry on the 1st, materials recently filed with a U.S. court included a passage in which former CEO Cleveland, in an internal strategy memo, likened Korea to U.S. actor Joe Pesci. He is said to have written that, in negotiations, the Korean side can be emotionally sharp and react aggressively depending on the situation. Because Joe Pesci is well known for often playing impulsive and violent characters in films, critics say this effectively portrayed Korea as aggressive.
The document also reportedly contained traces of derogatory expressions aimed at Koreans. The paper was submitted as an exhibit in the lawsuit filed by former Unknown Worlds executives against Krafton, and Krafton argued on that basis that "the former executives had no intention of faithfully running the company after the acquisition."
At the core of the conflict is a large performance bonus. Krafton acquired Unknown Worlds for about $500 million in 2021 and agreed by contract to pay up to an additional $250 million depending on the performance of the next title, Subnautica 2. But as the 2025 release plan was delayed and the founder-turned-executives were replaced, the former executives filed suit, saying "Krafton is deliberately delaying the release to avoid paying the bonus." Krafton has countersued, saying the former executives neglected development duties and removed confidential information without authorization.