Chorokbaem Acquires Hook Entertainment, Agency of Youn Yuh-jung, Lee Sun-hee, Lee Seo-jin, and Lee Seung-gi... "Diversifying IP, Expanding Value Chain"

[Asia Economy Reporter Hyunseok Yoo] Chorokbaem Media is strengthening its "entertainment content" business division by incorporating "Hook Entertainment," one of the leading management companies in Korea, as a subsidiary. Chorokbaem Media recently began actively securing IP by forming alliances with drama production companies through the "Content Alliance," while diversifying into the entertainment business sector to accelerate IP-based growth represented by "One Source Multi-Use."

Chorokbaem Media announced on the 10th through a public disclosure that it acquired 100% (10,000 shares) of Hook Entertainment's shares for 44 billion KRW and incorporated it as a subsidiary. This amount corresponds to 13.89% of Chorokbaem Media's equity capital as of the end of the half-year.

Hook Entertainment is the only domestic management company that has consistently recorded operating profit surpluses, which is unusual in the industry. The company, home to leading Korean artists such as Yoon Yeo-jeong, Lee Sun-hee, Lee Seung-gi, and Lee Seo-jin, was founded in 2002 by CEO Kwon Jin-young, who is regarded as the "Midas touch" of the entertainment industry.

Through this acquisition, Chorokbaem Media plans to maximize synergy between the two companies and leap beyond the drama genre to become a comprehensive IP-based entertainment company. In addition to its own produced and owned content IP, it plans to strengthen its business portfolio by building revenue models based on the IP of artists from Hook Entertainment.

A representative of Chorokbaem Media said, "Hook Entertainment is accelerating content production, starting with the co-production of 'Pyeonmeokgo Gongchiri' Season 2, currently airing on SBS, and the travel documentary 'Han Beonjjeum Meomchul Subakke' which was piloted on KBS last Chuseok and is scheduled for regular programming in January next year."

He continued, "Hook Entertainment houses actor Yoon Yeo-jeong, who won the Best Supporting Actress award at the 93rd Academy Awards for the film 'Minari,' and singer Lee Sun-hee, who has solidified her position as the nation's top singer since winning the Gangbyeon Music Festival Grand Prize. The company also includes actor Lee Seo-jin, who has been a blue chip in the advertising industry in recent years through his activities as an actor and entertainer, and multi-player Lee Seung-gi, who has sparked a national younger brother craze and is active as a singer, actor, and entertainer. These leading artists have been with the company for a long time," he said. He emphasized, "Even just adding their brand value will greatly help enhance corporate value."

With the recent global success of K-content, not only content producers but also the artists appearing in the works and their agencies are experiencing a rise in recognition, creating synergy. Chorokbaem Media plans to significantly increase the number of productions annually based on abundant funds and production alliances. By casting artists secured through acquisitions such as Bliss Entertainment and Hook Entertainment in its own productions, it aims to build a virtuous cycle structure where the corporate values of production companies and entertainment companies rise together.