A solid foundation built on 2025 achievements
The Korean indie game industry is expected to take another leap forward in 2026, building on the success of the previous year. In 2025, Lizard Smoothie’s “Shape of Dreams” sold over 500,000 copies within two weeks of its release, demonstrating the competitiveness of Korean indie games in the global market. This success is expected to have a positive impact beyond the performance of a single game, impacting the entire indie game industry in 2026.
Indie Craft 2025 saw record-breaking competition, with 292 entries submitted. The September exhibition in Pangyo attracted approximately 38,000 visitors. This demonstrates the significant increase in public interest in indie games. Major game companies like Neowiz, Kakao Games, Smilegate, and Com2uS Holdings are expected to continue their active participation in indie game publishing in 2026.
The paradigm shift in game development brought about by AI technology
The biggest change in the indie game industry in 2026 will be the full-scale adoption of AI technology. The government has allocated a new budget of 7.5 billion won to support the adoption of AI technology in the game industry in 2026, which is expected to provide significant opportunities for indie game developers.
AI technology is already being utilized in various areas of game development. Advances in technology that generates 3D models from text or images alone have reduced tasks that previously took weeks to a matter of hours. Krafton’s subsidiary, Lelu Games, demonstrated the power of generative AI, enabling just three developers to develop the role-playing simulation game “Magical Girl Lulooping” in just one month and release it on Steam.
On the Steam platform, approximately 20% of new games released in 2025 utilized generative AI, an eightfold increase from the previous year. Industry experts predict that within the next five to ten years, approximately 50% of all games will be developed using generative AI.
The adoption of AI technology is particularly significant for indie game developers. For indie developers working with limited manpower and budget, AI can be a game-changer, enabling shorter development times, lower costs, and higher-quality content creation. The use of AI is expected to expand across diverse areas, including character design, background creation, music generation, game code writing, and NPC dialogue.
Meanwhile, 2026 is expected to be the year when discussions on copyright and ethics surrounding AI-powered games intensify. The case of “Claire Obscur: Expedition 33,” which swept various gaming awards ceremonies in 2025, was stripped of its Indie Game Awards award after it was revealed that it had utilized generative AI, sparking a debate among industry insiders.
In 2026, indie game developers will face the challenge of balancing the efficiency of AI technology with copyright protection and compliance with ethical guidelines. It will be crucial for governments and industry to work together to establish clear guidelines and explore legal and ethical ways to utilize AI.
Customized support projects through expansion of government budget and systematization of policies
In 2026, the government’s indie game support policy will expand both quantitatively and qualitatively. The total game budget will reach KRW 112.3 billion, a 10.5% increase from the previous year, and the Korea Creative Content Agency’s total content budget will rise by 8.2% to KRW 705 billion. The gaming sector will see the largest investment increase, with a KRW 10.1 billion increase.
Of particular note is the diversification of support policies. In addition to supporting the adoption of AI technology, 1.5 billion won has been newly allocated to establish a K-Game Lakivium, which will begin work on preserving and showcasing the history of Korean gaming culture. This is expected to significantly contribute to establishing the identity of the Korean gaming industry, including indie games.
A total of 12 global game centers located across the country will compete to expand budgets and systematize policies to revitalize indie games in their respective regions, thereby working towards balanced regional development and strengthening the indie game ecosystem.
Currently, Global Game Centers are operating nationwide in 12 regions: Gyeonggi, South Chungcheong, North Chungcheong, Daejeon, North Gyeongsang, North Jeolla, Daegu, Gwangju, Ulsan, Busan, South Jeolla, and South Gyeongsang. Each center implements game industry development policies tailored to its local characteristics, and is responsible for cultivating local talent, providing space for startups, and supporting game production and exports.
The Korea Creative Content Agency (KOCCA)’s indie game development support program is collaborating with the Global Game Center to build a more robust support system. Indie game developers established less than three years ago are provided with development funding, mentoring, partnership programs with leading companies, and opportunities to participate in domestic and international exhibitions.
The 2025 Startup Corporation category received significant interest, with a total of 154 applications received. Selected companies can pursue their projects with up to KRW 180 million in government subsidies (up to 90%) and self-funding (at least 10% in cash).
In particular, through partnerships with leading companies like Neowiz and Smilegate, outstanding indie game development teams can receive consulting support, priority participation in business programs, and activity-based commercialization and infrastructure support. They also receive full support for individual booth participation at the Busan Indie Connect Festival (BIC) and access to the Game Level Up Showcase.
Major publishers accelerate competition to discover indie games.
Another notable change in the 2026 indie game ecosystem is the active participation of major corporations. Major game companies and IT companies, including Nexon, NCSoft, One Store, Netmarble, Kakao Games, and Megazone Cloud, are going beyond mere financial support to provide practical support for commercialization.
Following the success of “Skull” and “Sannabi,” Neowiz is preparing to publish “Hello Seoul: Itaewon” by the one-man developer Gino Games. Set in Itaewon, Seoul, on the eve of the apocalypse, this platformer has been recognized for its unique story and outstanding gameplay.
Kakao Games will release three premium indie games through its subsidiary Ocean Drive Studio: “Lost Idols: The Witch of Hypocrisy,” “Section 13,” and “God Save Birmingham.” Smilegate made a full-fledged foray into the publishing business in July 2025 through the indie game platform “Stove Indie” and plans to continue discovering diverse titles in 2026.
Com2uS Holdings is publishing Izzle’s “Guiders Zero.” The game has garnered attention, sweeping various indie game awards with its sleek pixel graphics, strategic gameplay, and philosophical scenario. The official launch is targeted for 2026. Webzen is also participating in the development of the indie game ecosystem, investing 1 billion won in Korean developer Black Anchor Studio.
MegaZone Cloud provides technical infrastructure support, including cloud architecture design, cost optimization, and operational automation. Umodeler provides academy licenses to university students, contributing to the development of the next generation of indie developers. Smilegate lowers the barrier to entry by subsidizing review costs through its Stove platform.
Industry insiders note that indie games, if successful, can achieve high performance with relatively low costs. Furthermore, unlike existing commercial games that tend to imitate hit games, indie games have the freedom to experiment with innovative and original development based on fresh ideas.
These efforts to foster mutual growth between large and small businesses are expected to continue into 2026, laying the foundation for indie game developers to grow into global unicorn companies.
Beyond Korea, to the world… Accelerating entry into the global market
The global expansion of Korean indie games is no longer an unfamiliar phenomenon. “Skull: The Hero Slayer,” developed by Southpaw Games, received a “Very Positive” rating of 93% from over 35,000 Steam user reviews and became the first Korean indie game to reach one million copies sold within a year of its release. Cumulative sales have long since surpassed two million copies.
Wonder Potion’s “Sannabi” achieved an “Overwhelmingly Positive” rating on Steam for its unique Joseon cyberpunk worldview, garnering 92% positive reviews out of over 13,000 user reviews. In 2024, it achieved commercial success, raising 1.435 billion won in merchandise funding.
Lizard Smoothie’s “Shape of Dreams” launched on Steam on September 11, 2025, and within a week, its cumulative sales skyrocketed, garnering enthusiastic responses from global gamers. This success, achieved by a startup with just two developers, proves that even small indie teams can succeed in the global market.
Marcus Poon, head of the Google Play Indie Game Accelerator, identified four key strengths of Korean studios: exceptional creativity and technical prowess, innovation across a wide range of genres, including music, puzzles, and RPGs, and team dynamics. Several gaming experts who mentored the Korean studios also praised their capabilities and volunteered to mentor them.
In 2025, Indiecraft operated a booth at Gamescom in Germany, promoting 69 selected games overseas and garnering keen interest from global publishers and investors. This support for overseas expansion is expected to continue in 2026.
Pearl Abyss has been supporting the global expansion of Korean indie developers by sponsoring the BIGJAM (BIC Indie Global Expansion Marketing) program for four consecutive years. Following support for participation in the 2025 Thailand Game Show and Gamescom Asia, Pearl Abyss plans to continue supporting participation in various global exhibitions in 2026.
NCSoft has been a sponsor of IndieCraft for seven consecutive years, leveraging its global network to support participation in domestic and international game shows. At G-Star 2025, the company has operated the “Startup with NC” booth for nine consecutive years, contributing to the development of the indie game ecosystem.
Expanding into the console and PC markets, actively seeking to diversify genres.
Another trend in indie games in 2026 is a multiplatform strategy for consoles and PCs. Unlike the mobile-centric past, indie games are now showing a trend of simultaneous releases on multiple platforms, including Steam, PlayStation, Nintendo Switch, and Xbox.
The government is also prioritizing the development of the console game market as a key policy priority. The global console game market is worth $59.14 billion, representing a 28.4% share. However, the Korean game industry’s share of the global console platform market is only 1.5%. It remains to be seen whether government-backed indie games will achieve significant results in the console market by 2026.
There’s also a trend toward genre diversification. Beyond the existing roguelites, platformers, and RPGs, indie games of various genres, including simulation, strategy, adventure, and horror, are expected to emerge.
Games that capture Korea’s unique culture and sentiments are expected to garner particular attention. This is because games set in specific Korean locations, such as “Hello Seoul: Itaewon,” and games inspired by Korean literature and history, such as “Sannabi,” are expected to offer a distinct competitive edge in the global market.
The Outlook for K-Indie Games in 2026 and the Challenges Ahead
In 2026, the domestic indie game industry is preparing for a new leap forward, driven by four key drivers: the AI technological revolution, expanded government support, synergy with large corporations, and accelerated global expansion.
However, many challenges remain. These include copyright and ethical issues related to the use of AI technology, intensifying competition from overseas game companies, and the need for diversification of revenue models. Furthermore, how to expand the focus on a small number of successful games to include a wider range of indie games is a crucial challenge.
As Acting President Yoo Hyun-seok of the Korea Creative Content Agency (KOCCA) emphasized, the content industry is at a critical juncture, with the technological landscape and global market order rapidly reshaping. To seize this golden opportunity for K-indie games to thrive amidst these changes, the government, major corporations, developers, and gamers must work together.
2026 will be a crucial year for the Korean indie game industry, enabling it to achieve a qualitative leap beyond quantitative growth and establish itself as a new growth engine for the Korean gaming industry in the global market. Armed with this new tool, AI, indie developers will be eager to see what creative games they create, and what impact this will have on the entire gaming industry.
