Gravity Reaches Preliminary Settlement on Plaintiff Class Action Litigation

Seoul, Korea, June 11, 2007 – Gravity Co., Ltd. (NASDAQ: GRVY, the “Company”),
an online game developer and publisher, announced that it and other defendants
have reached an agreement in principle to settle the class action litigation
brought on behalf of purchasers of the Company’s securities which is pending in
the United States District Court for the Southern District of New York as In re
Gravity Co., Ltd. Securities Litigation, No. 1:05-CV-04804-LAP.

Under the proposed settlement, a fund of US $10 million will be created to
settle the claims of a class consisting of persons who purchased American
Depository Shares of the Company during the period from February 7, 2005
November 10, 2005, inclusive. The Company’s share of the settlement fund will
US $5 million. Costs of administering the settlement, as well as Plaintiffs’
attorneys’ fees and expenses (which have not yet been determined) will be paid
out of the settlement fund before distributions are made to class members. In
exchange, the Company, its current and former directors and officers as well as
other third parties will be released from liability for the claims asserted by
the class.

The Company has denied and continues to deny any and all allegations of
wrongdoing in connection with this matter, but believes that given the
uncertainties and costs associated with the litigation, the settlement is in
best interests of the Company and its shareholders.

Il Young Ryu, Chairman and Chief Executive Officer of Gravity, commented: “It
important that we put this unfortunate event behind us so we can focus on
continuing to build our business and focus on our prospects for growth. This
settlement is a milestone towards that effort.”

The proposed settlement is conditioned, among other things, on various
conditions being met and final court approval after notice to the plaintiff
class and expiration of the time for appeal from any order of the court
approving the settlement.  There can be no assurance that the final settlement
will be obtained.

About GRAVITY Co., Ltd.
Based in Korea, Gravity is a developer and publisher of online games. Gravity's
principal product, Ragnarok OnlineTM, is a popular online game in many markets,
including Japan, Taiwan and Thailand, and is currently commercially offered in
48 markets. For more information, please visit http://www.gravity.co.kr.

Forward-Looking Statements:
Certain statements in this press release may include, in addition to historical
information, "forward-looking statements" within the meaning of the
"safe-harbor" provisions of the U.S. Private Securities Litigation Reform Act
1995. Forward-looking statements can generally 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, although not all forward-looking statements
contain these words. Investors should consider the information contained in our
submissions and filings with the United States Securities and Exchange
Commission (the "SEC"), including our registration statement on Form F-1, as
amended, and our 2005 annual report on Form 20-F, together with such other
documents and we may submit to or file with the SEC from time to time,
on Form 6-K. The forward-looking statements speak only as of this press release
and we assume no duty to update them to reflect new, changing or unanticipated
events or circumstances.

Contact:
Jonathan J. Lee
Chief Financial Officer / Investor Relations Officer
Gravity Co., Ltd.
E-mail:  jlee@gravity.co.kr
Phone:  + 822-2019-6021