KTB Network, Which Sold Its Stake in 'Baedal Minjok', Hits 26x Profit from 2.3 Billion to 65.2 Billion Won

Delivery Hero shares received as sale proceeds also doubled... Additional profit realized upon disposal
Toss still invested... Potential for another 'jackpot' too

[Asia Economy Reporter Minwoo Lee] KTB Network has disposed of its shares in the delivery application (app) 'Baedal Minjok' operator. It is evaluated that they made a significant profit by investing 2.3 billion KRW and recovering 65.2 billion KRW.

KTB Network announced on the 30th that it recovered 62.5 billion KRW from the sale of shares in Woowa Brothers, the operator of 'Baedal Minjok.' According to the contract terms, the sale proceeds were received as cash (53%) of 20 billion KRW and 298,962 shares (47%) of Delivery Hero stock. Among these, Delivery Hero shares were sold on the market to recover 42.5 billion KRW. Thus, the total sale proceeds were confirmed at 62.5 billion KRW, and the fund profit was 60.2 billion KRW. It is evaluated as a 'big hit' with more than 26 times the original investment of 2.3 billion KRW.

In particular, KTB Network achieved additional performance by investing shares in the fund. Including performance fees on the fund investment profit, the total reaches 22.1 billion KRW. This amount corresponds to 49.6% of last year's operating profit.

Previously, KTB Network invested in Woowa Brothers through the 'KTBN 7th' fund in 2014. In 2019, Woowa Brothers and German Delivery Hero signed a merger agreement, and in December last year, the conditions for recovering the sale proceeds were met following the conditional approval by the Korea Fair Trade Commission. Additionally, the Delivery Hero stock price received as sale proceeds more than doubled compared to the contract time due to the COVID-19 pandemic, resulting in additional profits.

Furthermore, KTB Network is the only domestic venture capital (VC) that has not yet liquidated its initial investment in Viva Republica, the operator of the simple remittance app 'Toss.' There are prospects for additional investment 'big hits.' Currently, Toss is valued at approximately 3.1 trillion KRW. Also, companies such as ToolGen (Korea, gene editing), CARsgen (China, next-generation immuno-oncology), and Miss Fresh (China, fresh food distribution) are receiving attention.

Meanwhile, KTB Network recorded a net profit of 35.8 billion KRW last year, setting an all-time high record. It is also pursuing an initial public offering (IPO) aiming for a KOSDAQ listing within the year. It has already signed underwriting contracts with Korea Investment & Securities and NH Investment & Securities on the 17th.