Korean publisher Webzen revealed on April 21 that it has taken legal action against developer Hound13 following the latter’s announcement to independently relaunch the open-world action RPG DragonSword on Steam under the title DragonSword: Awakening. Webzen, which initially partnered with Hound13 for publishing the game, asserts that Hound13 lacks valid publishing rights. This move comes after a two-month conflict between the two companies.
Initially introduced as “Project D,” Dragon Sword was formally presented as a free-to-play game in December 2022. The title launched in Korea in January 2026 with Webzen handling distribution. However, about a month post-launch, Hound13 declared its intent to end its publishing agreement with Webzen, citing an unpaid minimum guarantee (MG, the fixed sum publishers must pay developers irrespective of earnings) as the justification.
Hound13 explained that Webzen failed to settle the remaining MG due to the developer’s deteriorating financial health and uncertain prospects for ongoing game development. At that time, Hound13 indicated it would maintain the game’s services for three months as stipulated in its contract with Webzen, during which it would either secure a new publisher or prepare to self-publish the title.
On the same day, Webzen countered with its own statement, asserting that Hound13’s decision to terminate the contract was made without mutual agreement. Webzen subsequently disabled payment features for Dragon Sword and pledged full refunds for all in-game purchases made since launch to safeguard consumer interests.
According to reports, Webzen invested approximately 30 billion won (about $20.3 million USD) in January 2024 to support Dragon Sword’s development, ultimately acquiring publishing rights. The game was projected to be completed by March 2025, with the investment intended to cover operational expenses for a year post-development. However, development delays led to Hound13 facing financial challenges. Webzen claims it continued to financially assist the developer to sustain the project, even advancing a portion of the MG earlier than scheduled (as the contract specified MG payments post-launch).
Later, on March 3, Webzen stated that Hound13’s termination notice did not meet legal standards, thereby invalidating it and keeping the publishing agreement intact. The publisher also disclosed that it had fully paid the MG on February 27 to prevent service interruptions. As noted by GameMeca, while Hound13 acknowledged the payment, it argued the timing should have aligned with the originally agreed date and that this payment did not retroactively nullify the contract termination.
Hound13 announced the new Steam iteration, Dragon Sword: Awakening, on April 10. Positioned as a distinct title from the Korean free-to-play version, DragonSword: Awakening is intended as a globally released buy-to-play RPG. In response, Webzen issued another statement alleging that Hound13’s unilateral publishing efforts were conducted without consulting the original publisher. Since Hound13 lacks legitimate publishing rights, Webzen contends that the Steam launch could mislead consumers, particularly while refunds for the original live-service edition are still being processed. Consequently, Webzen has pursued a lawsuit to affirm its publishing rights and sought a preliminary injunction to halt the release of DragonSword: Awakening.
As of now, Hound13 has not issued any statements regarding the lawsuit, and numerous aspects of the dispute remain unresolved. The outcome of the legal battle and its implications for the future of Dragon Sword and DragonSword: Awakening remain uncertain.
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