The Western School of Dispute: South Korea’s Krafton Accuses Unknown Worlds Co-Founders of Racism and Sexism

Charlie Cleveland denies the remarks and insists they are not his own words.

The lawsuit between South Korean publisher Krafton and the founders of Unknown Worlds Entertainment — Charlie Cleveland, Max McGuire, and Ted Gill — has taken a new twist.

The three are demanding a $250 million bonus from Krafton tied to a successful early-access launch of Subnautica 2 in 2025. They claim the publisher fired them and pushed the release into 2026 to avoid paying the bonus, and they are seeking not only the payments but also reinstatement to their roles.

Krafton initially countered that the former studio leaders had abandoned the project and failed to manage it, which caused the delay. The company now alleges that Cleveland expressed “racist views toward Korea and Koreans” while preparing for the hearing. Cleveland is also reported to have said that men are “less emotional for biological reasons.”

Key excerpts from the document:

• “Korea is the Joe Pesci of countries. Charming until they become unbelievably angry […] Emotionally exhausting, especially for Western men. Men handle problems with less emotion for biological reasons.”
• “A small, unpleasant country. Every year some movie star takes their own life over sex, drugs, or something else.”
• “Delaware [where the proceedings take place] will recognize them as disgusting Koreans. They will be cast as villains in the eyes of others, and then it’s over.”

Cleveland also reportedly sought not only the bonus payments but $1 billion in damages for “emotional distress”, and urged his colleagues to take the same stance in court.

Krafton called those statements offensive and said such views make a fair adjudication of the case in Delaware impossible.

At the hearing, Cleveland attempted to distance himself from the notes, saying: “These are transcriptions of what we were advised to say. They are other people’s words, not mine.”

But Krafton maintains the records are contemporaneous communications created before Cleveland’s official dismissal from Unknown Worlds. The company argues the disclosed material casts doubt on any testimony from Cleveland, portraying him as someone trying to secure the largest possible award by any means.

Source: iXBT.games