SEOUL, South Korea, October 18, 2005 - Gravity Co., Ltd. (NASDAQ: GRVY), an  
online game developer and distributor, today announced that the Company is  
currently conducting an investigation into certain irregular activities.  The  
Company was recently informed by EZER, Inc., who recently acquired majority  
shares from former Chairman Jung Ryool Kim, that certain royalty payments paid 
to the Company from licensees of the Company’s principal product, Ragnarok  
Online, were not accounted for in its financial statements.   
 
The audit committee, which consists of independent directors who were  
appointed to Gravity’s board since September 2005, has begun an independent  
investigation into this matter.  It has retained the law firm of Cleary  
Gottlieb Steen & Hamilton LLP as its advisor and a Korean law firm, Woo Yun  
Kang Jeong & Han (“Woo Yun”) as the independent investigator, and Woo Yun has  
also retained a Korean accounting firm Deloitte Anjin LLC to provide  
assistance in accounting matters.   
 
Former Chairman Jung-Ryool Kim acknowledged that approximately USD 6 million,  
were diverted over the past few years and voluntarily paid approximately USD  
7.3 million or KRW 7.8 billion (representing the funds he claims to have been  
diverted together with assumed interest at a rate of 6 percent per annum) to  
the Company on October 17, 2005.   
 
Current CEO, Il Young Ryu, stated that “we don’t know the full details  
surrounding the incident and the audit committee is currently conducting  
a full scale investigation. Appropriate authorities have already been  
notified and the Company will announce the findings from the investigation  
as soon as more facts are discovered.”  The Company is assessing the impact 
of these matters on its outstanding financial statements for prior periods. 
 
 
About GRAVITY Co., Ltd. 
 
Based in Korea, Gravity is a developer and distributor of online games. The  
Company's principal product, Ragnarok Online, is currently commercially  
offered in 20 markets.  It is a popular online game especially in Japan,  
Taiwan, and South-East Asian countries.  For more information visit  
www.gravity.co.kr. 
 
Forward-Looking Statements: 
 
Certain statements in this press release include forward-looking statements  
within the meaning of the U.S. Private Securities Litigation Reform Act of  
1995. Forward-looking statements generally can be identified by the use of  
forward- looking terminology, such as “may,” “will,” “expect,” “intend,”  
“estimate,” “anticipate,” “believe,” “project” or “continue” or the  
negative thereof or other similar words.  All forward-looking statements  
involve risks and uncertainties, including, but not limited to, the ability to 
 
diversify revenue, ability to collect license fees and royalty payments from  
overseas licensees and in a timely manner; ability to acquire, develop,  
license, launch, market or operate commercially successful online games;  
competition from companies that have greater financial resources; introduction 
 
of new products into the marketplace by competitors; the ability to recruit  
and retain quality employees as Gravity grows; and economic and political  
conditions globally. Actual results may differ materially from those discussed 
 
in, or implied by, forward-looking statements. The forward-looking statements  
speak only as of the date of this release and Gravity assumes no duty to  
update them to reflect new, changing or unanticipated events or circumstances. 
 
 
CONTACTS For GRAVITY:	 
 
In Korea: 
John C. Chung 
GRAVITY Co. Ltd. 
Tel: 82-2-3485-1002 
chchung@gravity.co.kr	 
 
In the U.S.: 
David Pasquale, EVP 
The Ruth Group 
Tel: +646-536-7006 
dpasquale@theruthgroup.com