UNITED STATES
                             WASHINGTON, D.C. 20549

                                    FORM 6-K

                        REPORT OF FOREIGN PRIVATE ISSUER
                        PURSUANT TO RULE 13a-16 OR 15d-16

                                  May 18, 2006

                                GRAVITY Co., Ltd.
                 (Translation of registrant's name into English)

     14F Meritz Tower, 825-2 Yeoksam-Dong, Gangnam-Gu, Seoul, 135-934, Korea
                     (Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F: [X] Form 20-F [ ] Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): [ ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): [ ]

Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
[ ] Yes [X] No

If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): n/a


                                       Contacts:     Gravity Co. Ltd
                                                     James O. Kwon
                                                     - or -
                                                     Brian Rafferty
                                                     Taylor Rafferty, New York
                                                     - or -
                                                     John Dudzinsky
                                                     Taylor Rafferty, London


GRAVITY Co., Ltd. (Nasdaq: GRVY), Seoul, Korea, May 18, 2006.

Seoul, May 18, 2006 -- Gravity, Co., Ltd. (Nasdaq: GRVY), an online game
developer and publisher, announced that Mr. Jung Ryool Kim, the former Chairman
and CEO of Gravity, agreed to pay certain amount to the Company, in part to
reimburse the Company for certain of the costs and expenses incurred by the
Company in connection with the investigation of the former Chairman's diversion
of revenues otherwise due to the Company. As a part of the settlement, the
Company and Mr. Kim have mutually agreed to cease both civil and criminal action
against each other and have agreed to assist each other in the prompt resolution
of various lawsuits from minority shareholders and other parties affecting the
Company. The parties also have agreed not to bring any further actions against
each other as regards to the matters that gave rise to the Company having to
restate its financial statements for the fiscal years ended December 31, 2002,
2003 and 2004.

The Company has agreed to settle with the former Chairman so that it can
concentrate on its core business of developing and publishing online games
without wasting further time and financial resources in connection with such
matters. "We believe that this settlement will help us to normalize our
operations and finally return our focus on enhancing shareholder value by
growing our business and strengthening our global network. We will also make
every effort to enhance our system of internal control systems to help prevent
the same problem from occurring in the future." said Mr. Il-Young Ryu, the
Chairman and CEO of Gravity.

                                      # # #



Based in Korea, Gravity is a developer and distributor of online games.
Gravity's principal product, Ragnarok Online, is a popular online game in many
markets, including Japan, Taiwan and Thailand, and is currently commercially
offered in 21 markets. For more information about Gravity, please visit


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 of
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 will
contain these words. These forward-looking statements are based on our current
assumptions, expectations and projections about future events. All
forward-looking statements involve risks and uncertainties that may cause our
actual performance, financial condition or results of operations to be
materially different from those suggested by the forward-looking statements,
including, but not limited to, our ability to diversify revenue; our ability to
collect, and in a timely manner, license fees and royalty payments from overseas
licensees; our ability to acquire, develop, license, launch, market or operate
commercially successful online games; our ability to compete effectively in a
highly competitive industry; our ability to anticipate and access technological
developments in our industry; our ability to recruit and retain quality
employees as we grow; our ability to implement our growth strategies; and
economic and political conditions globally. 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 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, including 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.



Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                                 GRAVITY Co., Ltd.

Date: 5/18/2006

                                                 By:    /s/ James O. Kwon
                                                 Name:  James O. Kwon
                                                 Title: Chief Financial Officer