UNITED STATES
                             WASHINGTON, D.C. 20549

                                    FORM 6-K

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

                                  May 24, 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



    SEOUL, South Korea, May 24 /PRNewswire-FirstCall/ -- Gravity Co., Ltd.
(Nasdaq: GRVY), a global online game developer and publisher based in Korea,
has issued its financial and business update at an investor conference call on
Wednesday, May 24, 2006.

    On a Korean GAAP basis, revenues were KRW 49.26 billion (US$ 51.85 million),
down 16% from the previous fiscal year, due to primarily to intensifying
competition in the online market as well as due to the relative maturity of the
company's Ragnarok game.

    Net income for 2005 was negatively affected by the decline in revenue and
due to an increase in operating expense, resulting in part from increased
expenses attributable to the investigation of irregularities relating to the
diversion of royalty payments by the former Chairman.

    Operating expenses were KRW 51.14 billion (US$ 53.83 million), compared with
KRW 24.50 billion (US$ 25.79 million) in the previous year. This was due to
increased R&D expenses, a temporary increase in commissions, mainly due to the
investigation into the accounting fraud by the former Chairman.

    Commissions were KRW 9.89 billion (US$ 10.41 million), up 88% from the last
year's KRW 5.27 billion (US$ 5.55 million). R&D expenses rose 376.7% to KRW 9.14
billion (US$ 9.62 million), compared with KRW 1.92 billion (US$ 2,02 million) in
2004, due to the payment of STYLIA's licensing fees and an increase in the
development costs of the company's next MMORPG titles, Ragnarok II and Requiem.

    The company said that it is in the process of finalizing US-GAAP financial
statements for the fiscal year of 2005, which will be filed as part of the
company's Form 20-F with the SEC before the end of June this year.

    Mr. Il-Young Ryu, Chairman and Chief Executive Officer commented, "I see the
recent challenges are necessary part of growing pain for a young company like
Gravity. I am glad the investigation into the fraud is now over and we are ready
to move on." He also added, "To ensure accountability going forward, we are
currently in the process of implementing strict measures to strengthen our
corporate governance. At the same time, we will continue to pursue our "Star
Strategy," to become the "Hollywood" of the online game industry. As we make
further advances, we will make every effort to communicate our corporate vision
and provide financial and business updates with valued investors on a regular

    Highlights of Financial and Business Update

    -- Gravity swiftly finalized the investigation into the fraud by the former

    -- The restatement of financial statements for the fiscal years 2002, 2003
       and 2004 is now complete.

    -- Revenues in 2005 were KRW 49.26 billion (US$ 51.85 million), compared
       with KRW 58.90 billion (US$ 62 million) in the previous fiscal year.

    -- Expenses increased due to an increase in R&D and commissions, most of
       which accounts for the costs associated with the investigation. As a
       result, the company recorded a net loss of KRW 3.45 billion (US$ 3.63
       million) for the fiscal year 2005.

    -- The company continues to strengthen development and publishing as part of
       its 'Star Strategy'.

    -- Ragnarok II, the long-awaited sequel to the company's most successful
       online game, Ragnarok Online, is due to be released in the early 2007.

    * Based on Korean GAAP, the Won amounts are expressed in U.S. dollars at the
    rate of KRW 950 to US$ 1.00.

    To access the company's financial statements for the fiscal year 2005,
please visit the corporate website at http://www.gravity.co.kr or refer to the
US SEC filing on April 5, 2006.

    The call commences at 9:00 AM (New York) / 2:00 PM (London) / 9:00 PM (Hong
Kong/Singapore) / 10:00 PM (Seoul/Tokyo). Following the conclusion of the
conference call, a replay will be available for a limited time.

    To access the conference call, please dial one of the following numbers:
+1 718 354 1152 (US participants) / +44 (0)20 7365 1843 (UK/ European
participants) / +81 (0)3 3570 8231 (Asian participants). To obtain replay
details for the call, please contact Taylor Rafferty at the numbers provided

    About GRAVITY Co., Ltd.

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


      Gravity Co., Ltd.:
      James O. Kwon at + 82-2-2019-6050
      Email: ohsung@gravity.co.kr

      - or -

      Brian Rafferty
      Taylor Rafferty, New York

      - or -

      John Dudzinsky
      Taylor Rafferty, London

      - or -

      Taylor Rafferty:
      London - Erin Gordon at +44 (0)20 7614 2900
      New York - Luis Severiano at +1 212 889 4350
      Seoul - Min Kim at +82 (0)2 2000 5753
      Tokyo - Yuhau Lin at +81 (0)3 5444 2730
      Email - gravity@taylor-rafferty.com


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: 5/24/2006

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