FNC Entertainment Secures 12 Billion Won Investment from YG... "Expanding Cooperation Across Music Business"

Group P1Harmony. Provided by FNC Entertainment

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FNC Entertainment has received a convertible bond (CB) investment of 12 billion won from YG. Both companies plan to expand cooperation across all areas of the music business as a result of this investment.

According to the Financial Supervisory Service's electronic disclosure system on April 21, FNC Entertainment issued convertible bonds worth 12 billion won to YG Plus.

The company explained that this fundraising is a strategic decision aimed not only at financial purposes, but also at strengthening competitiveness in the music business and content. The funds secured will be used to establish a foundation for mid- to long-term growth, including investments in affiliated artists, development of new intellectual property (IP), and content production.

With this investment, both companies are leaving open the possibility of cooperation in all areas of the music business, including album and music distribution, concerts, and merchandise. In addition, they are broadly reviewing ways to create synergy in diverse areas such as discovering and nurturing new artists, and expanding IP.

This is the first case of collaboration between FNC Entertainment and YG. The industry expects that this investment will serve as a starting point for the two companies to formalize their cooperation.

Going forward, the companies plan to focus on strengthening core IP competitiveness and pursuing growth centered on profitability.

FNC Entertainment stated, "We plan to further enhance the competitiveness of our existing music business while increasing investment in key business areas, including developing new artists, expanding global activities, and producing dramas and other content. This investment was also undertaken as a foundation to achieve both external growth and improved performance."

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