GRVY 6-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of March 2021

Commission File Number 000-51138

GRAVITY Co., Ltd. ———————————————————————————————————————

(Translation of registrant’s name into English)

15F, 396 World Cup buk-ro, Mapo-gu, Seoul 121-795, Korea

——————————————————————————————————————— (Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:  [x] Form 20-F    [ ] Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  [ ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  [ ]

RESULTS OF THE ANNUAL GENERAL MEETING OF SHAREHOLDERS OF GRAVITY CO., LTD.

Gravity Co., Ltd. (the “Company”) held its Annual General Meeting of Shareholders (the “AGM”) at the Conference Room # 2 located at 3F, Business Tower, 396 World Cup buk-ro, Mapo-gu, Seoul 121-795 Korea at 10:00 a.m. on March 31, 2021.

The AGM was held with a quorum present and the agenda items were resolved by the shareholders in accordance with the Korean Commercial Code and the Company’s Articles of Incorporation as follows:

•	Agendum 1: the shareholders approved the Company’s consolidated and separate financial statements as of and for the years ended December 31, 2020 and 2019 prepared in accordance with International Financial Reporting Standards as adopted by the Republic of Korea, or Korean IFRS, and audited in accordance with Korean Standards on Auditing.
•	Agendum 2: the shareholders approved the reappointment of seven directors, Messrs. Hyun Chul Park, Yoshinori Kitamura, Kazuki Morishita, Kazuya Sakai (who are inside directors) and Messrs. Jung Yoo, Yong Seon Kwon, and Kee Woong Park (who are independent directors) and the appointment of a director, Mr. Heung Gon Kim (who is an inside director)
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•	Agendum 3: the shareholders approved the amount of KRW 1,400,000,000 as the maximum amount of compensation payable to directors as a group for fiscal year 2021.
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Furthermore, the Company’s 2020 Annual Business Report was presented to the shareholders at the AGM.

The Company’s Board of Directors, consisting of the seven reelected directors and a newly elected inside director, held a meeting immediately following the AGM (the “Board Meeting”). At the Board Meeting, Mr. Hyun Chul Park was reappointed as Chief Executive Officer and Mr. Yoshinori Kitamura was reappointed as Chairman of the Board of Directors.

Messrs. Jung Yoo, Yong Seon Kwon, and Kee Woong Park were reappointed as Audit Committee members at the Board Meeting.

The Company expects to file the Company’s consolidated and separate financial statements, including the notes thereto, which are prepared in the Korean language prepared in accordance with Korean IFRS and audited in accordance with Korean Standards on Auditing as of and for the years ended December 31, 2020 and December 31, 2019 (“2020/2019 Korean IFRS consolidated and separate financial statements”) with the Financial Supervisory Service of Korea no later than April 14, 2021. The condensed English translation version of the 2020/2019 Korean IFRS consolidated and separate financial statements is expected to be submitted to the United States Securities and Exchange Commission on Form 6-K at the same time.

Exhibit Index

Exhibit No.	Description
99.1	Gravity Reports Consolidated Financial Results for 2020
99.2	Gravity Reports Separate Financial Results for 2020
99.3	2020 Annual Business Report

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

GRAVITY CO., LTD.
By:	/s/ Heung Gon Kim
Name:	Heung Gon Kim
Title:	Chief Financial Officer

Date: March 31, 2021

grvy-ex991_8.htm

Exhibit 99.1

GRAVITY REPORTS CONSOLIDATED FINANCIAL RESULTS FOR 2020

Seoul, South Korea, March 31, 2021 - GRAVITY Co., Ltd. (NasdaqGM: GRVY) (“Gravity” or the “Company”), an online and mobile game developer and publisher based in South Korea, announces its consolidated financial results for the fiscal year ended December 31, 2020, prepared in accordance with International Financial Reporting Standards as adopted by the Republic of Korea. Financial statements are available on Edgar at http://www.sec.gov.

REVIEW OF FINANCIAL RESULTS

Revenues and Cost of Revenues

Revenues for 2020 were KRW 405,953 million (US$ 373,768 thousand), representing a 12.5% increase from KRW 360,967 million for 2019.

Online game revenue increased by 111.6% to KRW 89,545 million (US$ 82,446 thousand) in 2020 from KRW 42,322 million in 2019. The increase in online game revenue was mostly increased revenues from Ragnarok Online in Thailand that was re-launched on May 28, 2020.

Mobile game revenue for 2020 was KRW 298,324 million (US$ 274,672 thousand), representing a 1.2% decrease from KRW 301,903 million for 2019. This decrease was mainly due to decreased revenues from Ragnarok M: eternal Love in Southeast Asia, North America, South America, Oceania, Japan and Korea and such decrease was partially offset by increased revenues from Ragnarok Origin which was launched in Korea on July 7, 2020 and Ragnarok X: Next Generation which was launched in Taiwan, Hong Kong and Macau on October 15, 2020.

Other revenue was KRW 18,084 million (US$ 16,650 thousand) in 2020, representing a 8.0% increase from KRW 16,742 million in 2019.

Cost of revenues was KRW 239,045 million (US$ 220,093 thousand) in 2020, representing a 10.1% decrease from KRW 265,788 million in 2019. The decrease in cost of revenues was mainly due to decreased commissions paid for service fees of mobile platforms, royalty payments and outsourcing fees for game services related to Ragnarok M: Eternal Love.

As a result of the foregoing factors, gross profit for 2020 was KRW 166,908 million (US$ 153,675 thousand), representing a 75.4% increase from KRW 95,179 million for 2019.

Selling, General & Administrative Expenses (“SG&A”)

The Company’s total SG&A increased 67.0% to KRW 77,434 million (US$ 71,295 thousand) in 2020 compared with KRW 46,376 million in 2019. This increase in SG&A was mostly attributable to increased advertising expenses, research and development expenses, commission paid and salaries.

Based on the foregoing factors, the Company recorded an operating income of KRW 89,474 million (US$ 82,380 thousand) in 2020, compared to an operating income of KRW 48,803 million in 2019.

Non-operating Income and Non-operating Expenses

Non-operating expenses for 2020 was KRW 1,463 million (US$ 1,347 thousand) compared with non-operating income KRW 2,453 million in 2019. This decrease in non-operating income was primarily due to increased loss on foreign currency transaction and impairment loss on other non-current assets.

Profit before income tax for 2020 was KRW 88,011 million (US$ 81,033 thousand), compared with profit before income tax of KRW 51,256 million in 2019.

Gravity recorded a net profit of KRW 62,556 million (US$ 57,596 thousand) in 2020 compared with a net profit of KRW 39,730 million in 2019.

The balance of cash and cash equivalents and short-term financial instruments was KRW 181,632 million (US$ 167,232 thousand) as of December 31, 2020.

Note: For convenience purposes only, the KRW amounts have been expressed in U.S. dollars at the rate of KRW 1,086.11 to US$1.00, the noon buying rate in effect on December 31, 2020 as quoted by the Federal Reserve Bank of New York.

grvy-ex992_6.htm

Exhibit 99.2

GRAVITY REPORTS SEPARATE FINANCIAL RESULTS FOR 2020

Seoul, South Korea, March 31, 2021 - GRAVITY Co., Ltd. (NasdaqGM: GRVY) (“Gravity” or the “Company”), an online and mobile game developer and publisher based in South Korea, announces its separate financial results for the fiscal year ended December 31, 2020, prepared in accordance with International Financial Reporting Standards as adopted by the Republic of Korea. Financial statements are available on Edgar at http://www.sec.gov.

REVIEW OF FINANCIAL RESULTS

Revenues and Cost of Revenues

Revenues for 2020 were KRW 228,996 million (US$ 210,841 thousand), representing a 72.0% increase from KRW 133,152 million for 2019.

Online game revenue increased by 49.4% to KRW 37,917million (US$ 34,911 thousand) in 2020 from KRW 25,375 million in 2019. The increase resulted largely from the increase in revenues from Ragnarok Online in Thailand that was re-launched on May 28, 2020

Mobile game revenue for 2020 was KRW 190,926 million (US$ 175,789 thousand), representing a 77.6% increase from KRW 107,530 million for 2019. This increase was mainly due to increased revenues from Ragnarok Origin in Korea that was launched on July 7, 2020 and Ragnarok X: Next Generation in Taiwan, Hong Kong and Macau that was launched on October 15, 2020. Such increase was partially offset by decreased revenues from Ragnarok M: Eternal Love in Southeast Asia, Taiwan, Japan, Korea, North America, South America, Oceania and Europe.

Other revenue was KRW 153 million (US$ 141 thousand) in 2020, representing a 38.3% decrease from KRW 247 million in 2019.

Cost of revenues was KRW 119,227 million (US$ 109,774 thousand) in 2020, representing a 82.7% increase from KRW 65,242 million in 2019. The increase in cost of revenues was mainly due to increased commission paid related to game services for Ragnarok Origin and Ragnarok X: Next Generation.

As a result of the foregoing factors, gross profit for 2020 was KRW 109,769 million (US$ 101,067 thousand), representing a 61.6% increase from KRW 67,910 million for 2019.

Selling, General & Administrative Expenses (“SG&A”)

The Company’s total SG&A increased 59.1% to KRW 53,094 million (US$ 48,885 thousand) in 2020 compared with KRW 33,363 million in 2019. This increase in SG&A was mostly attributable to increased advertising expenses for Ragnarok Origin and research and development expenses.

Based on the foregoing factors, the Company recorded an operating income of KRW 56,675 million (US$ 52,182 thousand) in 2020, compared to an operating income of KRW 34,547 million in 2019.

Non-operating Income and Non-operating Expenses

Non-operating expenses for 2020 was KRW 1,625million (US$ 1,496 thousand) compared with non-operating income KRW 757 million in 2019. The decrease in non-operating income was primarily due to increased loss on foreign currency transaction and impairment loss on other non-current assets.

Profit before income tax for 2020 was KRW 55,050 million (US$ 50,686 thousand), compared with profit before income tax of KRW 35,304 million in 2019.

Gravity recorded a net income of KRW 39,417 million (US$ 36,292 thousand) in 2020 compared with a net income of KRW 23,468 million in 2019.

The balance of cash and cash equivalents and short-term financial instruments was KRW 116,956 million (US$ 107,684 thousand) as of December 31, 2020.

Note: For convenience purposes only, the KRW amounts have been expressed in U.S. dollars at the rate of KRW 1,086.11 to US$1.00, the noon buying rate in effect on December 31, 2020 as quoted by the Federal Reserve Bank of New York.

grvy-ex993_7.htm

Exhibit 99.3

2020 Annual Business Report

Table of Contents

1.	Business Overview
(1)	Business Results and Financial Statements for the Past Three Fiscal Years (2018 – 2020)
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2.	Company Overview
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(1)	Registered Purpose of the Company
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(2)	Description of Primary Business
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(3)	Problems Confronting the Company
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(4)	Business Offices and Game Development Facilities
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(5)	Stock
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(6)	Debenture
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(7)	Major Share holders
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(8)	Investment in Other Companies
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(9)	Directors Holding Concurrent Positions
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(10)	Material Transactions with Related Parties
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(11)	Significant Creditors
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(12)	Employees
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(13)	Directors and Auditors
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(14)	Material Events after the End of Fiscal Year 2020
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3.	Consolidated Financial Statements as of and for the fiscal years ended December 31, 2020 and 2019
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(1)	Consolidated Financial Positions
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(2)	Consolidated Comprehensive Income
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(3)	Consolidated Statements of Changes in Equity
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(4)	Consolidated Statements of Cash Flows
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4.	Separate Financial Statements as of and for the fiscal years ended December 31, 2020 and 2019
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(1)	Financial Positions
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(2)	Comprehensive Income
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(3)	Statements of Appropriation of Retained Earnings
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(4)	Statements of Changes in Equity
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(5)	Statements of Cash Flows
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1. Business Overview

(1)	Business Results and Financial Statements for the Past Three Fiscal Years (2018 – 2020)
			(In thousands of Korean Won)
---	---	---	---	---	---	---	---	---
Category	2020		2019			2018
Current assets		164,602,523		100,881,643			83,385,874
• Quick assets		164,602,523		100,881,643			83,385,874
Non-current assets		28,537,796		26,687,368			22,618,902
• Investment asset		14,958,641		12,393,218			9,464,638
• Property and Equipment, net		3,176,858		2,855,143			882,089
• Intangible asset		2,663,857		2,025,543			1,572,714
• Other non-current asset		7,738,440		9,413,464			10,699,461
Total assets		193,140,319		127,569,011			106,004,776
Current liabilities		48,824,376		23,916,264			24,548,267
Non-current liabilities		3,370,754		2,151,426			3,668,390
Total liabilities		52,195,130		26,067,690			28,216,657
Share capital		3,474,450		3,474,450			3,474,450
Capital surplus		27,482,683		27,482,683			27,482,683
Other components of equity		929		(26,017	)		(270,936	)
Retained earnings		109,987,127		70,570,205			47,101,922
Total equity		140,945,189		101,501,321			77,788,119
Revenues		228,996,069		133,151,813			198,697,511
Operating income		56,675,048		34,546,553			40,450,700
Income before income tax		55,050,476		35,304,130			35,139,350
Net income		39,416,922		23,468,283			32,677,145

2. Company Overview

(1)	Registered Purpose of the Company
1)	Software consulting, development and supply
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2)	Development and sales of software and CD
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3)	Information-technology-related software development
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4)	Production, development, distribution, sales and consulting of digital contents, including game software, as well as corresponding licensing
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5)	Online network game services
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6)	Applied package-related software development
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7)	Production and sales of computer programs
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8)	Import and export of software
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9)	E-commerce
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10)	Character development business
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11)	Animation business
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12)	Real estate leasing
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13)	Service-area restaurant business
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14)	Media-related business
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15)	Printing and publication
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16)	Record & video production and distribution
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17)	Any other businesses incidental to the above businesses
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(2)	Description of Primary Business
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Gravity Co., Ltd. (the “Company”) is the developer of Ragnarok Online, an MMORPG, which was launched in August 2002 and is commercially offered in 93 markets worldwide, including Korea, Japan, Taiwan, Thailand, Southeast Asia, the United States and Europe as of December 31, 2020.

Having strong global network and success from Ragnarok Online, the Company is expanding its business areas from online game development and publishing to cultural contents business based on various platforms, such as development of games for smartphones, console and IPTV, and animation and game character merchandising.

In addition, the Company has subsidiaries, such as Gravity NeoCyon, Inc. in Korea, Gravity Interactive, Inc. in the United States, Gravity Communications Co., Ltd in Taiwan. In order to strengthen its presence in the overseas markets, the company was established subsidiaries in Bangkok, Thailand on January 29, in Jakarta, Indonesia on February 5, and in Tokyo, Japan on July 1, 2019.

(3)	Problems Confronting the Company

Since the Company operates in a highly competitive industry, the Company is making every effort to enhance its development capacity and to maintain and increase its market share in overseas markets to preserve its competitive advantage.

The Company is in need of diversified revenue structure, continuous global market expansion and new business initiatives for sustainable revenue growth. The Company is doing its best diversely to expand new markets, to publish mobile games, to develop mobile games and to do IP licensing business.

(4)	Business Offices and Game Development Facilities
Classification	Location
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Head Office	(Nuritkum Square R&D Tower) 15F, 396 World Cup buk-ro,<br><br><br>Mapo-gu, Seoul 121-795, Korea
Game Development Facilities	(Nuritkum Square R&D Tower) 15F, 396 World Cup buk-ro,<br><br><br>Mapo-gu, Seoul 121-795, Korea
(5)	Stock
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1)	Total number of shares
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		(As of December 31, 2020)
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Total number of shares authorized	Total number of shares issued	Total number of shares unissued
40,000,000 shares	6,948,900 shares	33,051,100 shares
2)	Type of Stock issued (Par value per share: KRW 500)
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(As of December 31, 2020)

Type	Number of shares	Total par value	%
Registered common stock	6,948,900 shares	KRW 3,474,450,000	100%
(6)	Debenture: None.
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(7)	Major Shareholders
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			(As of December 31, 2020)
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Shareholder	Shares<br><br><br>owned		%		Transaction with<br><br><br>the Company
GungHo Online Entertainment, Inc.		4,121,737		59.31		—
Others		2,827,163		40.69		—
Total		6,948,900		100.00		—
(8)	Investment in Other Companies
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				(As of December 31, 2020)
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Companies				Relationship with the Company
Name	Location	Common Stock	Main business	Shares owned		%			Relationship
Gravity Interactive, Inc.	California, USA	USD 14,540,000	Gaming Service		290,000		100.00	%	Subsidiary
Gravity NeoCyon, Inc.(*1)	Seoul, Korea	KRW 7,963,990,000	Mobile game development		1,585,298		99.53	%	Subsidiary
Gravity Communications Co., Ltd.	Taipei. Taiwan	NTD 155,100,000	Online and Mobile Game Service		15,510,000		100.00	%	Subsidiary
Gravity Entertainment Corp.(*2)	Tokyo, Japan	0	Animation making/service		0		0.00	%	Subsidiary
PT Gravity Game Link(*3)	Jakarta, Indonesia	IDR 28,814,000,000	Online and Mobile Game Service		2,016,980		70.00	%	Subsidiary
Gravity Game Tech Co., Ltd.	Bankok, Thailand	THB 88,049,940	Online and Mobile Game Service		8,804,994		100.00	%	Subsidiary
Gravity Game Arise Co., Ltd.	Bangkok, Thailand	JPY 50,000,000	Online and Mobile Game Service		5,000		100.00	%	Subsidiary

(*1) During the year ended December 31, 2020, the Parent Company participated in paid-in capital increase of Gravity NeoCyon, Inc. which resulted in increase of ownership interest of the Parent Company.

(*2) Gravity Entertainment Corp. was liquidated during 2020 and has been excluded from subsidiary since then.

(*3) Gravity participated to capital increase of PT.Gravity Game Link with Won 853,183 thousand.

(9)	Directors Holding Concurrent Positions
	Company
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Name	Name	Position	Responsibility
Hyun Chul Park	Gravity Co., Ltd.	CEO	Overall management
	Gravity NeoCyon, Inc.	Executive Director	Chief Operating Officer
	Gravity Communications Co., Ltd.	Executive Director		—
	Gravity Interactive, Inc.	Executive Director		—
	Gravity Game Arise Co., Ltd.	Executive Director		—
Yoshinori Kitamura	Gravity Co., Ltd.	Executive Director	Chief Operating Officer
	Gravity Interactive, Inc.	CEO	Overall management
	Gravity NeoCyon, Inc.	CEO	Overall management
	Gravity Communications Co., Ltd.	CEO	Overall management
	PT Gravity Game Link	CEO	Overall management
	Gravity Game Tech Co., Ltd.	CEO	Overall management
	Gravity Game Arise Co., Ltd.	CEO	Overall management
(10)	Material Transactions with Related Parties
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1)	Sales and purchases
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						(In thousands of Korean Won)
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		2020				2019
Nature	Related companies	Sales		Purchases		Sales		Purchase
Parent company	GungHo Online Entertainment, Inc.		20,970,472		211,348		26,477,425		56,899
Subsidiaries	Gravity Interactive, Inc.		22,952,182		859		38,508,020		2,791
	Gravity Entertainment Corp.	-		-		-			251,102
	Gravity NeoCyon, Inc.		301,672		7,504,107		517,314		7,018,159
	Gravity Communications Co., Ltd.		7,779,917		9,855,435	5,570,889			2,245,589
	PT Gravity Game Link		1,535,466		28,007		156,995		34,853
	Gravity Game Tech Co., Ltd.		9,662,919		54	-			360
	Gravity Game Arise Co., Ltd.	-			2,478,752	-			797,955
	Total	63,202,628			20,078,562		71,230,643	10,407,708
2)	Receivables and Payables
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						(In thousands of Korean Won)
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		2020					2019
Nature	Related companies	Receivables		Payables			Receivables		Payables
Parent company	GungHo Online Entertainment, Inc.	2,449,506			4,924			2,553,022		73,678
Subsidiaries	Gravity Interactive, Inc.		3,845,373	-				4,804,814		365
	Gravity Entertainment Corp.	-		-				8,325	-
	Gravity NeoCyon, Inc.	349,634			862,702			1,166,940		850,412
	Gravity Communications Co., Ltd.	1,021,437			1,296,845			1,547,814		2,120,357
	PT Gravity Game Link	442,927			14,899			22,504		215,884
	Gravity Game Tech Co., Ltd.	966,402		-				451,879		360
	Gravity Game Arise Co., Ltd.	922,360			1,461,626			889,785	228,929
	Total	9,997,639		3,640,996				11,445,083		3,489,985
(11)	Significant Creditors: The Company had no significant creditors as of December 31, 2020.
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(12)	Employees
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				(As of December 31, 2020)
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Category	Directors & Officers	Developers	Marketing/Operating	Finance/Administration	Total
Employees	10	164	65	40	279
(13)	Directors and Auditors
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(As of December 31, 2020)

Name	Position	Main work		Transaction with the<br><br><br>Company
Hyun Chul Park	CEO	Chief Executive Officer			—
Yoshinori Kitamura	Executive Director	Chief Operating Officer			—
Kazuki Morishita	Executive Director		—		—
Kazuya Sakai	Executive Director		—		—
Jung Yoo	Independent Director	Member of audit committee			—
Yong Seon Kwon	Independent Director	Member of audit committee			—
Kee Woong Park	Independent Director	Member of audit committee			—
(14)	Material Events after the end of fiscal year 2020: The company established a subsidiary in Singapore on January 4, 2021.
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3. Consolidated Financial Statements as of and for the fiscal year ended December 31, 2020 and December 31, 2019

(1)	Consolidated Statements of Financial Position
GRAVITY CO., LTD.	(In thousands of Korean Won)
---	---	---	---	---	---	---	---
	December 31, 2020				December 31, 2019
Assets
Current Assets			246,585,717				155,863,353
Cash and cash equivalents		110,632,482				79,427,979
Short-term financial instruments		71,000,000				39,500,000
Accounts receivable, net		59,761,256				32,253,496
Other receivable, net		8,333				56,177
Prepaid expenses		2,237,708				1,962,421
Other current financial assets		817,825				232,676
Other current assets		2,128,113				2,430,604
Non-current Assets			18,786,651				19,561,992
Property and equipment, net		7,695,046				6,663,444
Intangible assets, net		3,362,879				1,717,060
Other non-current financial assets		1,323,865				1,769,840
Other non-current assets		2,814,792				1,744,551
Deferred tax assets		3,590,069				7,667,097
Total assets			265,372,368				175,425,345
Liabilities
Current liabilities			82,720,222				55,787,148
Account payables		52,687,616				37,496,038
Deferred revenue		13,692,283				10,747,710
Withholdings		2,851,636				1,763,653
Accrued expenses		1,364,753				1,174,924
Income tax payable		9,469,833				2,618,245
Other current liabilities		2,654,101				1,986,578
Non-current liabilities			5,304,130				3,872,107
Long-term account payables		1,402,466				192,782
Long-term deferred revenue		101,015				98,226
Other non-current liabilities		3,800,649				3,576,384
Deferred tax liabilities	-					4,715
Total liabilities			88,024,352				59,659,255
Equity
Equity attributable to owners of the Parent Company			176,910,875				115,544,739
Share capital			3,474,450				3,474,450
Common shares		3,474,450				3,474,450
Capital surplus			27,109,803				27,127,684
Other components of equity			(1,044,533	)			274,538
Retained earnings			147,371,155				84,668,067
Non-controlling interest			437,141				221,351
Total equity			177,348,016				115,766,090
Total liabilities and equity			265,372,368				175,425,345
(2)	Consolidated Statements of Comprehensive Income
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GRAVITY CO., LTD.	(In thousands of Korean Won)
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	2020					2019
Revenues				405,953,021					360,967,098
Online games		89,545,060					42,321,437
Mobile games		298,323,908					301,903,506
Other revenue		18,084,053					16,742,155
Cost of revenues				239,044,923					265,788,109
Gross profit				166,908,098					95,178,989
Selling and administrative expenses				77,433,905					46,375,930
Operating Profit				89,474,193					48,803,059
Non-operating income and expenses				(1,463,083	)				2,453,444
Financial income		1,265,740					2,074,700
Financial costs		(637,083	)				(408,513	)
Other non-operating income		2,867,922					2,465,615
Other non-operating expenses		(4,959,662	)				(1,678,358	)
Profit before income tax				88,011,110					51,256,503
Income tax expense				25,455,435					11,526,299
Profit for the year				62,555,675					39,730,204
Owners of the Parent Company		62,703,088					39,875,981
Non-controlling interests		(147,413	)				(145,777	)
Other comprehensive income				(1,319,071	)				136,105
Items that may be subsequently reclassified to income or loss		(1,319,071	)				136,105
Foreign currency translation adjustments		(1,319,071	)				136,105
Total comprehensive income for the year				61,236,604					39,866,309
Owners of the Parent Company		61,384,017					40,012,086
Non-controlling interests		(147,413	)				(145,777	)
Earnings per share attributable to the equity holders of the Parent Company
Basic earnings per share				9,023					5,738
Diluted earnings per share				9,023					5,738
(3)	Consolidated Statements of Changes in Equity
---	---
GRAVITY CO., LTD.	(In thousands of Korean Won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Share capital		Capital Surplus			Other<br><br><br>components<br><br><br>of equity			Retained<br><br><br>Earnings			Total			Non-<br><br><br>controlling<br><br><br>interest			Total<br><br><br>Equity
Balance at January 1, 2019		3,474,450		27,140,255			138,433			45,404,608			76,157,746			(605,961	)		75,551,785
Profit(loss) for the year	-		-			-				39,875,981			39,875,981			(145,777	)		39,730,204
Equity transaction	-			(12,571	)	-			-				(12,571	)		1,401			(11,170	)
Acquisition of subsidiaries, etc.	-		-			-				(612,522	)		(612,522	)		971,688			359,166
Foreign currency translation adjustments	-		-				136,105		-				136,105		-				136,105
Balance at December 31, 2019		3,474,450		27,127,684			274,538			84,668,067			115,544,739			221,351			115,766,090
Balance at January 1, 2020		3,474,450		27,127,684			274,538			84,668,067			115,544,739			221,351			115,766,090
Profit(loss) for the year	-		-			-				62,703,088			62,703,088			(147,413	)		62,555,675
Equity transaction	-			(17,881	)	-			-				(17,881	)		1,227			(16,654	)
Acquisition of subsidiaries, etc.	-		-			-			-			-				361,976			361,976
Foreign currency translation adjustments	-		-				(1,319,071	)	-				(1,319,071	)	-				(1,319,071	)
Balance at December 31, 2020		3,474,450		27,109,803			(1,044,533	)		147,371,155			176,910,875			437,141			177,348,016
(4)	Consolidated Statements of Cash Flows
---	---
GRAVITY CO., LTD.	(In thousands of Korean Won)
---	---	---	---	---	---	---	---	---	---	---
	2020					2019
Cash flows from operating activities				69,856,903					26,371,282
Profit for the year		62,555,675					39,730,204
Adjustments		32,132,238					14,703,135
Changes in operating assets and liabilities		(12,952,425	)				(17,212,867	)
Interest received		1,122,471					1,605,200
Interest paid		(185,742	)				(277,454	)
Income tax paid		(12,815,314	)				(12,176,936	)
Cash Flows from investing activities				(36,049,464	)				(32,525,784	)
Proceeds from disposal of property and equipment		3,039					71,228
Proceeds from disposal of other intangible assets	-						20,215
Decrease in other non-current financial assets		22,479					42,768
Increase in short-term financial instruments		(31,500,000	)				(30,000,000	)
Purchase of property and equipment		(1,071,379	)				(982,899	)
Purchase of other intangible assets		(2,624,540	)				(1,359,971	)
Increase in other non-current financial assets		(879,063	)				(317,125	)
Cash Flows from Financing Activities				(2,547,245	)				(1,686,075	)
Proceeds from capital contribution from non-controlling interests		361,976					359,166
Payment of share issuance cost		(16,654	)				(11,170	)
Repayment of lease liabilities		(2,892,567	)				(2,034,071	)
Effects of exchange rate changes on cash and cash equivalents				(55,691	)				1,217,818
Net increase in cash and cash equivalents				31,204,503					(6,622,759	)
Cash and cash equivalents at beginning of the year				79,427,979					86,050,738
Cash and cash equivalents at end of the year in the statements of financial position				110,632,482					79,427,979

4. Separate Financial Statements as of and for the fiscal year ended December 31, 2020 and December 31, 2019

(1)	Statements of Financial Position
GRAVITY CO., LTD.	(In thousands of Korean Won)
---	---	---	---	---	---	---	---
	December 31, 2020			December 31, 2019
Assets
Current Assets			164,602,523			100,881,643
Cash and cash equivalents		45,956,245			40,088,250
Short-term financial instruments		71,000,000			39,500,000
Accounts receivable, net		44,353,327			17,977,026
Other receivable, net		478,428			1,162,439
Prepaid expenses		1,293,345			779,693
Other current financial assets		841,092			334,415
Other current assets		680,086			1,039,820
Non-current Assets			28,537,796			26,687,368
Investments in subsidiaries		14,958,641			12,393,218
Property and equipment, net		3,176,858			2,855,143
Intangible assets, net		2,663,857			2,025,543
Other non-current financial assets		1,128,475			1,702,234
Other non-current assets		1,891,247			1,871,208
Deferred tax assets		4,718,718			5,840,022
Total assets			193,140,319			127,569,011
Liabilities
Current liabilities			48,824,376			23,916,264
Accounts payables		34,810,387			16,040,563
Deferred income		4,680,655			4,199,370
Withholdings		2,096,706			865,570
Accrued expenses		610,004			566,094
Income tax payable		4,998,566			1,210,020
Other current liabilities		1,628,058			1,034,647
Non-current liabilities			3,370,754			2,151,426
Long-term account payables		1,402,466			129,150
Long-term deferred income		133,936			98,226
Other non-current liabilities		1,834,352			1,924,050
Total liabilities			52,195,130			26,067,690
Equity
Share Capital			3,474,450			3,474,450
Common shares		3,474,450			3,474,450
Capital surplus			27,482,683			27,482,683
Other components of equity			929			(26,017	)
Retained earnings			109,987,127			70,570,205
Total equity			140,945,189			101,501,321
Total liabilities and equity			193,140,319			127,569,011
(2)	Statements of Comprehensive Income
---	---
GRAVITY CO., LTD.	(In thousands of Korean Won)
---	---	---	---	---	---	---	---	---	---
	2020					2019
Revenues				228,996,069					133,151,813
Online games		37,917,065					25,374,718
Mobile games		190,926,376					107,529,902
Other revenue		152,628					247,193
Cost of revenues				119,227,125					65,242,309
Gross profit				109,768,944					67,909,504
Selling and administrative expenses				53,093,896					33,362,951
Operating Profit				56,675,048					34,546,553
Non-operating income and expenses				(1,624,572	)				757,577
Financial income		994,755					1,525,335
Financial costs		(120,931	)				(292,233	)
Other non-operating income		4,762,128					4,994,020
Other non-operating expenses		(7,260,524	)				(5,469,545	)
Profit before income tax expense				55,050,476					35,304,130
Income tax expense				15,633,554					11,835,847
Profit for the year				39,416,922					23,468,283
Other comprehensive income (loss)				26,946					244,919
Items that may be subsequently reclassified to income or loss		26,946					244,919
Foreign currency translation adjustments		26,946					244,919
Total comprehensive income for the period				39,443,868					23,713,202
(3)	Statements of Appropriation of Retained Earnings
---	---
GRAVITY CO., LTD.	(In thousands of Korean Won)
---	---	---	---	---	---	---	---	---
	2020				2019
	Confirmed disposition date: March 31, 2021				Confirmed appropriation date: March 31, 2020
Retained earnings before appropriation				109,987,127				70,570,205
Unappropriated retained earnings carried over from prior year		70,570,205				47,101,922
Profit for the year		39,416,922				23,468,283
Appropriation of retained earnings			-				-
Unappropriated retained earnings carried forwards to subsequent year			109,987,127					70,570,205
(4)	Statements of Changes in Equity
---	---
GRAVITY CO., LTD.	(In thousands of Korean Won)
---	---	---	---	---	---	---	---	---	---	---	---
	Share capital		Capital Surplus		Other<br><br><br>components<br><br><br>of equity			Retained<br><br><br>Earnings<br><br><br>(Accumulated<br><br><br>deficit)		Total
Balance at January 1, 2019		3,474,450		27,482,683		(270,936	)		47,101,922		77,788,119
Profit for the year	-		-		-				23,468,283		23,468,283
Foreign currency translation adjustments	-		-			244,919		-			244,919
Balance at December 31, 2019		3,474,450		27,482,683		(26,017	)		70,570,205		101,501,321
Balance at January 1, 2020		3,474,450		27,482,683		(26,017	)		70,570,205		101,501,321
Profit for the year	-		-		-				39,416,922		39,416,922
Foreign currency translation adjustments	-		-			26,946		-			26,946
Balance at December 31, 2020		3,474,450		27,482,683		929			109,987,127		140,945,189
(5)	Statements of Cash Flows
---	---
GRAVITY CO., LTD.	(In thousands of Korean Won)
---	---	---	---	---	---	---	---	---	---	---
	2020					2019
Cash flows from operating activities				43,998,181					32,545,923
Profit for the year		39,416,922					23,468,283
Adjustments		19,381,149					14,952,150
Changes in operating assets and liabilities		(8,008,589	)				1,133,672
Interest received		998,281					1,043,667
Dividend received		2,382,800					2,557,695
Interest paid		(120,865	)				(173,763	)
Income tax paid		(10,051,517	)				(10,435,781	)
Cash flows from investing activities				(36,633,521	)				(37,836,682	)
Decrease in other non-current financial assets		6,391				-
Disposal of property and equipment		12,386,391					3,216
Acquisition of investments in subsidiaries		(3,853,178	)				(6,777,526	)
Increase in short-term financial instruments		(31,500,000	)				(30,000,000	)
Increase in other non-current financial assets		(100	)				(69,487	)
Acquisition of property and equipment		(158,284	)				(153,753	)
Acquisition of intangible assets		(1,129,588	)				(839,132	)
Cash flows from financing activities				(1,515,930	)				(1,364,537	)
Repayment of lease liabilities		(1,515,930	)				(1,364,537	)
Effects of exchange rate changes on cash and cash equivalents				19,265					144,673
Net increase in cash and cash equivalents				5,867,995					(6,510,624	)
Cash and cash equivalents at the beginning of the financial year				40,088,250					46,598,874
Cash and cash equivalents at the end of the year in the statements of financial position				45,956,245					40,088,250