At one time, games were regarded as "content that ends on the screen," but that notion is breaking quickly. Major Korean game companies are pulling their popular IP (intellectual property) into offline spaces, setting in motion full-fledged moves to reshape their business structures. Going beyond simple merchandise sales or pop-up stores, they are expanding into experiential content such as theme parks, mixed-use cultural spaces, and large-scale exhibitions, widening the game industry's influence into the "physical world."
◇ Building permanent bases beyond simple pop-ups… expanding into experiential platforms
According to the industry on the 3rd, major game companies including Nexon, Krafton, and Devsisters have pushed offline IP expansion strategies as core businesses over the past one to two years. Previously, companies kept users with game updates and events; now, making users "experience IP in the real world" itself is emerging as a new competitive edge. In fact, as of last year, major game companies ran dozens of offline events annually (about 10 to 16 per IP), rapidly multiplying user touchpoints.
The most emblematic example is Nexon's MapleStory. Starting in Mar. 2026, Nexon built the roughly 600-pyeong "Maple Island" theme zone at Lotte World Adventure in Jamsil, Seoul, turning the in-game world into a play space. Combining attractions, F&B, and merchandise, the space is being evaluated not as a one-off event but as a permanent IP platform. Earlier last year, the company introduced a Maple Agit–concept PC café in Gangnam, and the Café MapleStory inside the Nexon Computer Museum in Jeju drew 22,000 visitors in its first month. Based on this IP expansion, Nexon posted 4.5 trillion won in annual revenue last year, maintaining its No. 1 position among Korean game companies.
Krafton went a step further, choosing a city-type mixed-use cultural space strategy. Opened in Jul. last year in Seongsu-dong, Seoul, PUBG SEONGSU combines a PC café, café, merchandise shop, and experiential play zones, serving as a representative case of expanding games into "lifestyle content." Designed as a platform that offers both community and brand experiences, it goes beyond a simple gameplay space. Backed by this IP expansion strategy and global service performance, Krafton posted a record-high 3.3266 trillion won in revenue last year.
Devsisters is also accelerating its offline expansion with the Cookie Run IP. Starting late last year, the large-scale exhibition "Cookie Run Sea Adventure" at Lotte World Aquarium, along with expanded fan festivals and pop-up events, is part of a strategy to turn the game into cultural content. The company has publicly stated a goal to grow Cookie Run into a long-lived IP sustainable for 30 to 50 years, expanding beyond a game into a brand business.
This trend goes beyond a simple marketing fad and is linked to structural changes in the industry. The biggest backdrop is slowing market growth. According to the Korea Creative Content Agency (KOCCA) game white paper, the domestic game usage rate plunged from 74.4% in 2022 to 50.2% in 2025. The 24.2 percentage-point drop in just three years reflects the exodus of light users after the end of the pandemic boost. In fact, "lack of time (44%)" and "waning interest (36%)" are cited as top reasons for not playing, shrinking the user base itself.
The decline in users is directly leading to unstable revenue structures. The game industry is highly dependent on new titles, making performance volatility large depending on whether a single title hits. On top of that, tighter regulation of probability-based items is raising questions about the sustainability of existing monetization models. In this context, offline IP expansion is emerging as an alternative that can secure relatively stable, recurring revenue sources. The industry notes that the share of offline-related revenue has recently grown by double digits, and in some corporations, early signs show it expanding to around 10% of total revenue.
Theme zones, exhibitions, merchandise, and F&B businesses generate ongoing consumption after initial investments. Offline experiences, in particular, can both offset decreased game time and build brand loyalty, creating a "virtuous cycle" that draws users back into the game. Reports indicate that more users who experience IP at amusement parks or exhibition spaces are rejoining games or coming in as new players.
◇ A revenue equation proven globally… a long-term investment that extends brand life
This strategy is already a proven model in global markets. Nintendo, in partnership with Universal Studios, built "Super Nintendo World," reshaping the theme park industry. After the opening of the Epic Universe in Orlando, U.S., in 2025, Universal's theme park business posted $2.9 billion in quarterly revenue, proving the profitability of IP-based offline businesses. The Pokémon Company also combined offline retail with experiential spaces to record 411 billion yen in revenue as of 2025 (about 3.7 trillion won), showcasing a long-term commercialization model for game IP.
Moves by Korean game companies both follow this global current and signal a more fundamental shift. Analysts say the shift has begun from making money off a single game to transforming into entertainment corporations that link diverse businesses around the IP itself. Games are being redefined as both the starting point for IP expansion and the hub that connects various forms of content.
Challenges remain. Industry observers point out that Korean game companies lack experience in offline IP businesses. In reality, cases of building stable revenue structures in merchandise or exhibition businesses are still limited, and large permanent spaces carry the burden of long payback periods relative to investment.
An official in the game industry said, "In the past, being good at making games itself was a competitive edge, but now the more important issue is how long you can keep an IP alive," adding, "Offline expansion is closer to an investment that extends brand life than to short-term revenue, and the performance gap is likely to become apparent in two to three years."