FSN: "Boosters Secures 20 Billion Won Investment"

KOSDAQ-listed FSN announced on December 1 that its subsidiary Boosters has completed a 20 billion won RCPS (Redeemable Convertible Preferred Shares) investment from SBI Investment.

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A company representative stated, "Discussions for additional investments from several institutions within the same round are in their final stages," adding, "With the conclusion of this round, we are aiming to achieve a post-money valuation of 200 billion won." The representative further explained, "Once this investment round is completed, Boosters will have nearly doubled its corporate value in less than a year, following the 10.4 billion won investment it secured in January, which pushed its valuation past 100 billion won."

Boosters plans to actively utilize the secured funds for the growth of existing partners, additional partnerships, and brands scheduled for investment. Beyond simply providing marketing and commerce capabilities, Boosters aims to evolve into a company that expands the global K-brand ecosystem, with a goal of reaching a corporate value of 1 trillion won within the next three years.

The company is considering equity investments in both existing partners and new brands that have proven their competitiveness domestically and internationally. Strategic collaborations with K-beauty companies and platform firms possessing unique technological capabilities are also being concretized. With the large-scale funding secured, more aggressive marketing and sales activities have become possible, and the growth rate of partner brands is expected to accelerate further.

Boosters plans to focus on the rapidly growing K-beauty market as a core target, along with supporting the global expansion of its existing partners. The company already has experience collaborating with K-beauty brands, including exclusive sales for Dermaile. Boosters is expected to quickly establish a strong presence in the global beauty market, and based on this, it is also planning collaborations with K-beauty brands with unique technological strengths.

Boosters has innovated the traditional advertising agency model by collaborating with high-growth potential brands, jointly investing in marketing, and sharing the resulting profits. In addition, for companies requiring financial investment, Boosters pursues shared growth by taking on both performance and risk through equity investments.

In its first year after founding in 2019, Boosters recorded annual sales of only 200 million won. By leveraging its unique marketing and commerce capabilities and differentiated business model, the company has achieved remarkable growth, revolutionizing the traditional advertising and marketing sector. This year, Boosters reached a record-high cumulative consolidated revenue of 168.9 billion won and operating profit of 30.5 billion won as of October, surpassing its previous annual best. On a separate basis, including its wholly owned platform business, the company has also achieved about 4.8 billion won in separate operating profit.

If Boosters completes this investment round as planned, it will reach a corporate value of 200 billion won within just six years of its founding. Building on this, the company aims to discover promising brands, expand equity investments, broaden its global distribution network, and advance its platform, all with the goal of becoming a "global K-brand builder" and achieving a corporate value of 1 trillion won within the next three years.

FSN, the parent company, is also expected to benefit from Boosters' explosive growth. Based on Boosters' strong performance, FSN has recorded its highest-ever results as of the third quarter, with net income attributable to controlling shareholders reaching 5.9 billion won.

Furthermore, the increase in Boosters' corporate value will significantly boost the value of FSN's equity holdings, which could have a very positive impact on FSN's overall corporate value. FSN plans to actively invest in new businesses, leveraging the maximized asset value and cash liquidity of its subsidiaries.

Seo Jeonggyo, CEO of FSN, stated, "Boosters is a unique company equipped with a win-win growth model for partners, data- and AI-driven marketing, differentiated commerce capabilities, and the execution power to actually grow brands. This investment has laid the foundation to further accelerate its potential."

He added, "With this investment, Boosters will take another leap toward the ambitious goal of reaching a corporate value of 1 trillion won within three years. FSN will also further strengthen its asset value and liquidity at the group level and actively pursue investments to secure new growth engines."

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