Kakao Entertainment Launches IPO... Tencent Headquarters Executive Joins Board of Directors

Piao Yanli Appointed Vice President and Non-Executive Director of Tencent
Kakao Entertainment's Third Largest Shareholder Tencent... Expected to Raise Its Voice in the Boardroom

[Asia Economy Reporter Yuri Choi] Kakao Entertainment has appointed Piao Yanli, Vice President of Tencent Games, as an outside non-executive director. With a key figure who has played a crucial role whenever Tencent invests in domestic ICT companies joining the board, Tencent's influence within Kakao Entertainment is expected to strengthen. As the company prepares for its IPO next year, it is also anticipated that he will serve as a bridge for attracting global capital and expanding into China.

Vice President Yanli Acts as a Korea-China Bridge at Tencent... Also Active on Kakao and Netmarble Boards

According to industry sources on the 30th, Kakao Entertainment appointed Vice President Yanli as an outside non-executive director on the same day. This appointment fills the vacancy left by Director Eo Kyung-ran of Tencent Korea, who resigned.

Tencent currently holds a 5.1% stake in Kakao Entertainment through its subsidiaries Sky Blue and TCH. It is the third-largest shareholder after Kakao and private equity firm Anchor Equity Partners. Accordingly, the outside non-executive directors of Kakao Entertainment have been Choi Yong-seok, Head of Kakao Growth Support Office, Ahn Sang-gyun, CEO of Anchor Equity Partners, and Director Eo Kyung-ran.

On the surface, Vice President Yanli replaced Director Eo Kyung-ran, who resigned for personal reasons, but the industry expects Tencent's voice on Kakao Entertainment's board to grow stronger. Typically, outside non-executive directors are not subject to term limits and often serve long tenures, but Director Eo Kyung-ran is leaving after only three years since her appointment in 2020. The fact that an executive from Tencent's headquarters, rather than the Korean branch, is joining Kakao Entertainment also supports this interpretation.

Vice President Yanli is a third-generation ethnic Korean in China and serves as a bridge between Korea and China at Tencent. After establishing Tencent Korea's office in 2006, he gained recognition by introducing popular Korean games such as Dungeon & Fighter and Crossfire to the Chinese market. He later served as CEO of Tencent Korea and then as Head of Business at Tencent Group. He has played a key role whenever Tencent has become a major shareholder in domestic ICT companies such as Kakao, Netmarble, Kakao Entertainment's predecessor KakaoPage, Kakao Games, and Krafton.

Since Tencent's equity investments, he has exerted influence by serving on the boards of Kakao and Netmarble for extended periods. Vice President Yanli served as an outside director of Kakao for eight years from 2012 until stepping down in 2020 due to term limits, and has been an outside non-executive director at Netmarble since 2014. At that time, Tencent provided funding to Kakao affiliates through its investment arms and distributed major domestic games like PUBG in the Chinese market.

Kakao Entertainment Preparing for IPO, Expected to Expand China Business and Attract Investment

Vice President Yanli is expected to play a significant role in Kakao Entertainment's global business expansion and investment attraction going forward. This is a promising development for Kakao Entertainment as it pursues its IPO next year.

Currently, Kakao Entertainment is seeking pre-IPO investments worth up to 1 trillion KRW. It is reportedly in talks with multiple global investors, including Saudi Arabia's sovereign wealth fund PIF and Singapore's GIC. There is also potential for additional investments from Tencent or connections with Chinese investors through Vice President Yanli.

He is also expected to serve as a bridge in the Chinese market. Kakao Entertainment has been aggressively expanding globally, acquiring Tapas Media, the first webtoon platform in North America. It has also been exploring the Chinese market by establishing a joint venture (JC) with Tencent for webtoons and web novels and launching platforms. An industry insider said, "Tencent has expanded its influence over domestic IT companies based on its massive capital and domestic market, with Vice President Yanli playing a central role. His joining the board itself is meaningful."