Goldman Sachs Names Top Stocks Worth Buying in South Korea's Online Gaming Sector

LootboxPhobia · 2026-03-18T06:03:24+00:00

Goldman Sachs is bullish on investment opportunities in South Korean online gaming companies Krafton and NCSOFT, believing that both companies are undergoing strategic transformation, expanding into new markets, and achieving revenue diversification. Krafton is pivoting toward artificial intelligence and defense technology, while NCSOFT is shifting toward mobile casual gaming ecosystems, with plans to significantly increase revenue and return on equity.

LootboxPhobia

2026-03-18 06:03:24

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Investing.com – Goldman Sachs has identified two prominent investment opportunities in South Korea’s online gaming sector, focusing on companies undergoing strategic transformation beyond traditional gaming models.

The bank’s analysis centers on companies diversifying their revenue streams and expanding into new growth markets.

1. Krafton - Goldman Sachs rates Krafton as a buy, with a 12-month target price of 510,000 KRW, citing the company’s shift from gaming into AI-driven industrial applications.

The company is forming a joint venture with Hanwha Aerospace to develop physical AI and robotics technology, gaining investment opportunities in high-growth sectors including drones.

The total potential market size for autonomous aerial vehicles is approximately $45 billion, with a compound annual growth rate of about 14%. Goldman Sachs notes that Krafton is transitioning from volatile consumer gaming businesses to more stable enterprise and defense technology sectors.

This strategic shift, integrating AI with defense, enhances the company’s long-term growth prospects, while diversification beyond blockbuster games improves investor sentiment.

2. NCSOFT - Based on NCSOFT’s transformation into a leader in the mobile and casual gaming ecosystem, Goldman Sachs assigns a target price of 340,000 KRW and a buy rating.

The company acquired a 70% stake in Germany-based JustPlay for 301.6 billion KRW, establishing a comprehensive platform covering development, publishing, user acquisition, and monetization.

NCSOFT aims to achieve 5 trillion KRW in revenue and a 15% return on equity by 2030, planning to generate 1.75 trillion KRW from mobile casual games, accounting for 35% of its revenue mix.

Goldman Sachs emphasizes that this strategy frees the company from reliance on traditional PC-based IPs and expands its presence in North America and Europe.

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