[Click eStock] "Corpus Korea Strengthens Drama with Acquisition of Kim Jong-hak Production"

[Asia Economy Reporter Ji Yeon-jin] NH Investment & Securities forecasted on the 27th that Corpus Korea's drama production capabilities will be strengthened through the acquisition of Kim Jong-hak Production.

Researcher Kang Kyung-geun of NH Investment & Securities stated, "Corpus Korea's annual drama production volume is expected to expand to 6-9 titles next year," adding, "Starting next year, production revenue will be fully reflected, enabling significant external growth, and it has secured valuation attractiveness compared to competitors."

Corpus Korea is a content-specialized company established in 2005. The largest shareholders are Oh Young-seop and four others, holding 62.14%. According to the latest data, sales by business segment are license sales 83.7%, production sales 7.94%, merchandise sales 6.24%, subtitle sales 1.81%, and others 0.31%. The domestic sales ratio is only 8.3%, while Japan accounts for an overwhelming 91.7%.

The company entered the drama production business last year. Through the issuance of convertible bonds (CB) last year, it secured 30 billion KRW in funds and announced plans to strengthen its drama production capabilities. On the 11th, it announced the acquisition of Kim Jong-hak Production (100% stake, 12.86 billion KRW). Kim Jong-hak Production, established in 1988, is a drama production company that has produced about 70 dramas including ‘Sandglass’, ‘Full House’, ‘The Legend’, and ‘All of Us Are Dead’.

Researcher Kang emphasized, "Over the past 17 years, the company has expanded its genres from dramas to entertainment, web novels, and webtoons, holding the largest Hallyu content library in Japan," adding, "In the distribution business, the ratio of new works to old works in sales is about 3 to 7, with a high renewal rate, and the gross profit margin (GPM) exceeds 50%, indicating high profitability, so it is expected to continue playing a cash cow role."