[Click eStock] "Chorokbaem, Full-Scale Revenue from In-House IP-Based Dramas in the Second Half"

Yuanta Securities Report

[Asia Economy Reporter Minji Lee] Yuanta Securities on the 15th forecasted that Chorokbaem is expected to start generating revenue in earnest as it plans to release dramas based on its own IP aimed at supplying content to online video streaming services (OTT) in the second half of the year.

Chorokbaem is an outsourcing production company producing dramas and entertainment shows, originally established in 2000 as Chorokbaem M&C by former SBS Drama Production Bureau producer Kim Kibum. The current largest shareholder is W Holding Company, which operates in the logistics business.

The company plans to produce 6 to 7 dramas this year. Four dramas confirmed to air in the first half of the year are produced under the traditional outsourcing drama business model. Starting in the second half, the company plans to release 2 to 3 dramas based on its own IP aimed at OTT supply. The drama "Youth" is a large-scale OTT drama produced based on the BTS universe, with a production budget of approximately 40 billion KRW. Yuanta Securities researcher Park Seongho stated, "Even considering the possibility of profit sharing with Big Hit, higher margins different from the existing business model are expected."

"That Night," starring Kim Soohyun and Cha Seungwon, is a remake of the British drama "Criminal Justice," involving a large production budget and is also preparing for OTT service. A work planned by writer Park Haeyoung, known for "Another Miss Oh" and "My Mister," is also expected to air in the second half of this year or the first half of next year.

With the increase of global OTT platforms and the expansion of Korean drama buyers, the company's drama production business performance is expected to break records this year. Researcher Yu explained, "In July last year, the LCT Observatory, capable of generating stable annual profits exceeding 4 billion KRW, was opened," and added, "'The Sky Farm (Fried Chicken House That Does It Well)' which has been reflected in annual results since the third quarter, is also contributing to profits mainly through franchise stores."

This content was produced with the assistance of AI translation services.