KT, 175 Billion Won Paid-in Capital Increase to Studio Giny... "Strengthening Content Competitiveness"

[Asia Economy Reporter Eunmo Koo] KT announced on the 17th through a public disclosure that it will participate in a paid-in capital increase of KT Studio Genie, the core affiliate of the group's content business, with an amount of 175 billion KRW.

KT Studio Genie plans to issue 8.75 million common shares through this paid-in capital increase, with an issue price of 20,000 KRW per share. Since KT holds 100% of Studio Genie's shares, there will be no change in the shareholding ratio due to this additional investment. Previously, KT established KT Studio Genie in January by investing 25 billion KRW in capital, and with this participation in the paid-in capital increase, KT's total investment has expanded to 227.8 billion KRW.

KT Studio Genie intends to use the funds secured this time to nurture broadcasting channels within the group and establish a stable foundation for original content production. They plan to produce and present about 20 dramas annually and build an intellectual property (IP) library of around 1,000 items by 2025.

Starting with the original work "Crime Puzzle" (starring Yoon Kye-sang and Go Ah-sung), which will be released in the fourth quarter, they will secure abundant and excellent original IPs, produce well-made dramas, and secure a competitive lineup of original content.

In addition to the channels owned by the existing SkyTV, KT Group acquired Hyundai Media, adding a channel lineup capable of supplying entertainment and dramas. The competitiveness of KT-affiliated broadcasting channels will also be strengthened in earnest through exclusive scheduling of original dramas produced by KT Studio Genie and expansion of original entertainment production.

The recently established online video service (OTT) specialized company KT Seezn will also be incorporated as a subsidiary of KT Studio Genie. Through this, KT Studio Genie will secure 100% shares of Storywiz, KT Seezn, and Hyundai Media, as well as 36% and 22% shares of Genie Music and SkylifeTV, respectively.

Yoon Yong-pil, co-CEO of KT Studio Genie, said, "With this paid-in capital increase, Studio Genie has secured a solid position as the control tower of the group's content business along with strong investment momentum for original content," adding, "We will secure content production capabilities in a short period through synergy between wired and wireless platforms within the group, as well as a win-win model with external creators and strategic investors, and build competitiveness to succeed in the global content market."