Krafton Accuses Former Unknown Worlds Entertainment Execs Of Racism

Krafton released court documents in ongoing case in Delaware

Unknown Worlds Entertainment co-founder’s notes calls South Korea a Joe Pesci country

Former Nexon CEO and President Owen Mahnoey allegedly advised on litigation Possible push to move case to court of public opinion

The Battle Between Krafton And Former Execs Spills Out of Court

While the lawsuit over $250 million in unpaid bonuses is being considered by the Chancery Court in Delaware, South Korean Krafton released two files to media that alleges racism and bigotry towards the Asian company and its workers.

The dispute in court is between the three co-founders of Unknown Worlds Entertainment: Charlie Cleveland, Max McGuire, and Ted Gill over the work on Subnautica 2. According to Krafton, work on Subnautica 2 was rushed in order to trigger a bonus payout of a quarter of a million dollars, at the expense of the quality of the game.

Today, Krafton released internal communications from Unknown Worlds Entertainment which were read out in court yesterday, containing damning language which may affect the outcome of the ongoing case.

Suggesting South Korea Is A Joe Pesci Country

A document surfaced during trial titled “Litigation Help” and it includes notes dated June 28, 2025 written by Cleveland, allegedly containing advice given by former Nexon CEO and President Owen Mahnoey on how to take Krafton to court.

Cleveland said the notes were his when being questioned in court and that they were based on conversations with Mahoney. These are the notes from court that Krafton is now accused of sharing with the press.

“Korea – they are the Joe Pesci of countries. Charming until they’re incredibly nasty. It goes to 11 quickly. No filter.

It can be emotionally draining dealing with this, especially as male westerners. (Korean) Males might be more problem-solvers and bring less emotion – there are biological reasons for this. Making games is about problem solving.

Korea has been surrounded by enemies who want to kill them. They are fighters. It’s small and nasty. Every year some big film star commits suicide because of sex, drugs, or something, hounded by press.

Delaware will say this is a bunch of sadistic Korean assholes (like Samsung – John Pleasance). They’ve cast us out as villains and it’s done.

Delaware? Oh, they’re fucked. You don’t even need a Korean lawyer. History will remember that Krafton was bad. Even the Reddit crowd hates them because of Dark and Darker.

We’re playing the house’s money and we’re the home team. We don’t need to worry about these guys or our reputation. History will remember that Krafton was bad.”

Court Case Still Going

The case between Krafton and the former execs is still going on and there is more to come before there will be a ruling. Until then, there could be more drama from either side to push the case into the court of public opinion.

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