13.1x Returns from K-Content Fund by Ministry of Culture... Which Companies Were Invested In?

The Ministry of Culture, Sports and Tourism announced on the 29th that K-Net Cultural Contents Specialized Investment Association, a sub-fund of the K-Content Fund (the parent fund’s cultural account), has recovered 262.2 billion KRW. This is the highest multiple return (13.1 times) since the establishment of the K-Content Fund in 2006.

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K-Net Cultural Contents Specialized Investment Association started in 2008 with 20 billion KRW of government capital. It was established with a scale of 50 billion KRW and invested in the gaming sector, including Bluehole Studio, the predecessor of Krafton.

With this liquidation, the Ministry of Culture, Sports and Tourism has recovered 262.2 billion KRW, raising the cumulative return multiple of the K-Content Fund to 1.54 times (363.5 billion KRW invested, 559.4 billion KRW recovered). Yoon Yang-su, Director of the Content Policy Bureau, stated, "We plan to reinvest the recovered funds to accelerate the discovery of new success cases," adding, "We will contribute to maintaining the soundness of government finances through continuous investment."

Krafton, which brought profits to the Ministry, is a game developer owning popular intellectual properties (IPs) such as "TERA" and "Battlegrounds." Founded in 2007, it attracted 22.2 billion KRW of investment from the K-Content Fund. Based on this, it grew rapidly, achieving a KOSPI listing in 2021, and has become a leading company with 95% of its sales (as of Q1 last year) generated overseas.

Director Yoon said, "This is the result of the Ministry’s consistent belief in the promise and potential of content companies and steady investment," and added, "Even if not immediately visible, we will invest in content companies that will shine someday, thereby shaping the future of the K-Content industry."

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