In 1995, five Game School alumni decided to conquer the Korean gaming world and founded their own company. Inspired by British developer Bullfrog, they named it Dragonfly1. After keeping themselves above water with a series of mildly popular RPGs and games based on the Anpanman (Hoppangman in Korea) character license, thitherto president and team leader Pak Seungcheol called his older brother Pak Cheolu to help, who took over the management, and pushed for a shift towards squad-based online FPS games in a time when RPG and RTS games were dominating the Korean scene, to conquer Western markets2. The new CEO proved that he had the right intuition, although it was first and foremost the domestic market that he conquered: Dragonfly's Sudden Attack became one of the most popular online games in Korea, among first-person-shooters only lagging behind Sudden Attack3.

In recent years, Dragonfly has licensed a lot of other companies' IPs to translate them into online games. Besides Quake Wars Online listed below, Dragonfly also closed a contract with SNKP for the most popular NeoGeo franchises in April 20084. All three were originally developed by outside studios; WizHands showed artwork and screenshots of a 2.5D Metal Slug Zero Online5, King of Fighters Online was developed by Triple-A Games6, while Blue Dragon Interactive worked on Samurai Shodown Online7. However, the fate of online games based on SNK series has traditionally been an unfortunate one, and these projects were no exception. In June 2009, Dragonfly cancelled Metal Slug Zero Online and reset the whole project to start from scratch, now to be developed by Dragonfly itself (or, as the case may be, its subsidiary AP-Studio). Later that year, it tried to blackmail Dragon Interactive and Triple-A Games into selling their stock majorities and becoming subsidiaries. The studios declined, and Dragonfly pulled support and the licenses. The incident caused significant damage to Dragonfly's reputation, as well as to the value of its stocks8. The new Metal Slug Online is currently in some kind of open testing phase with virtually no promotion, while Dragonfly offered jobs for "3D effects artists" on Samurai Shodown Online in April 20129.

Dragonly also acquired Phantagram through the subsidiary Future Port in 200810, enabling the company to develop Kingdom under Fire Online.