Krafton Fined Over Misleading PUBG Loot Box Ads Involving K-pop Group NewJeans

Image Credit: NewJeans/Krafton/ADOR

Krafton has been fined 2.5 million KRW by Korea’s Fair Trade Commission (FTC) for misleading advertisements related to PUBG: Battlegrounds loot boxes themed around the popular K-pop group NewJeans.

The fine, issued on June 16, 2025, follows a detailed investigation into the way Krafton marketed its NewJeans collaboration event, which ran between March and June 2024.

According to a report by The JoongAng, the issue stemmed from the game’s promotion of a “pity system” — a feature that allegedly guaranteed a NewJeans-themed character skin after five failed attempts. However, the FTC found that the actual probability of obtaining a skin was just 9% per attempt, with no assurance of success even after multiple tries.

This misleading claim resulted in significant backlash and regulatory action. In response, Krafton refunded approximately 1.1 billion KRW to nearly 380,000 players and distributed an additional 9.8 billion KRW worth of in-game currency. The total financial impact of the situation has reached nearly 10.9 billion KRW. The FTC has also ordered Krafton to submit preventive measures to avoid similar issues in future promotions.

Other than the loot box controversy, the PUBG x NewJeans event also raised eyebrows due to concerns about the objectification of underage group members. Event, originally launched in June 2024, introduced themed cosmetics, emotes, and redesigned locations, with each avatar representing a member of the group — Minji, Hanni, Danielle, Haerin, and Hyein. A major in-game update even transformed PUBG’s Taego School into a pastel-colored concert venue, aligning with NewJeans’ visual style.

However, criticism intensified when some players began customizing NewJeans avatars—particularly those of underage members Haerin and Hyein—inappropriately, using revealing outfits such as bikinis and hot pants. The shared content prompted accusations of sexual objectification and sparked public outcry, especially given PUBG’s 15+ rating.

In a joint statement released on June 20, 2024, Krafton and ADOR (NewJeans’ label) condemned the misuse and pledged to restrict 19 outfits starting July 10, 2024. The statement also included promises to monitor content more closely and take disciplinary action against violators.

Critics also took aim at ADOR’s handling of the collaboration, questioning why it allowed such open customization, especially in contrast to Krafton’s earlier collaboration with BLACKPINK, which had more controlled content. The backlash even gave rise to the term “NewJeans-like,” a phrase that’s used in Korean online communities to describe overpriced or poorly thought-out digital content.

To top it off, NewJeans is currently dealing with its own internal drama, thanks to a growing dispute between ADOR CEO Min Hee-jin and HYBE, the group’s parent company.

All things considered, the mix of in-game controversy and behind-the-scenes tension has cast a shadow over NewJeans’ future promotions — both in the gaming world and beyond.