Kakao Entertainment Secures 1.2 Trillion KRW Global Investment... Largest Scale for a Content Company
[Asia Economy Reporter Yuri Choi] Kakao Entertainment announced on the 12th that it has attracted an investment of approximately 1.2 trillion KRW from leading sovereign wealth funds overseas. This is the largest scale of overseas investment attracted by a domestic content company. It is also the largest investment ever raised by the entire Kakao community.
This investment takes the form of acquiring new shares issued by Kakao Entertainment through a third-party allotment paid-in capital increase. Kakao Entertainment plans to focus the funds secured from this investment on global business. The ambition is to realize the future vision of the Kakao community, ‘Beyond Korea.’
The Story division aims to plan and discover various intellectual properties (IP) and introduce them to global expansion regions such as North America, Thailand, Taiwan, and Indonesia. By combining business know-how with Tapas Entertainment, established in North America, it plans to lead the growth of the local webtoon and web novel markets. The Media division will focus its capabilities on planning and producing premium content. The Music division will also work to strengthen its influence within the global music industry. It will enhance collaboration with global partners in the music distribution business and pursue diversification of its music distribution portfolio.
Jae-Hyun Bae, Senior Vice President and Head of Kakao Investment Governance, who led this investment attraction, said, “It is very encouraging that we were able to attract investment from leading sovereign wealth funds and other overseas institutions despite the overall contraction of investment sentiment due to increased economic uncertainty both domestically and globally,” adding, “This proves to the global market the differentiated IP value chain’s global competitiveness and growth potential of Kakao Entertainment, which covers all fields of entertainment.”
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Sung-Soo Kim, CEO of Kakao Entertainment, emphasized, “This investment attraction means that the future and potential of the K-content industry have been highly evaluated,” and added, “In line with the government’s K-culture growth strategy, we will do our best to establish ourselves as a global entertainment leading company by combining Kakao’s digital network know-how with K-content.”
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