Kakao Entertainment Secures 1.2 Trillion Won Investment to "Strengthen Global Business"

"Proving IP Value Chain Competitiveness and Growth Potential"
'Beyond Korea' Emerges, Leading the K-Content Boom

Kakao Entertainment has attracted an investment of 1.2 trillion KRW from leading overseas sovereign wealth funds, including Saudi Arabia's Public Investment Fund. The investment was made through the acquisition of new shares issued via a third-party allotment paid-in capital increase, marking the largest scale of overseas investment attraction among domestic content companies to date.

On the 12th, Bae Jae-hyun, Senior Vice President and Head of Kakao Investment Governance, stated, "This is an encouraging achievement amid a globally weakened investment sentiment," adding, "Our differentiated intellectual property (IP) value chain competitiveness and growth potential have been recognized in the global market."

Kakao Entertainment is rich in IP. It owns approximately 10,000 webtoons and web novels, as well as about 70,000 music tracks. Numerous artists, including idols and actors, are also affiliated. The company has a system that plans, produces, and distributes music and video content, creating various synergies. A representative success story is 'Sanae Matseon,' which gained worldwide popularity on global OTT platforms. Based on web novels and webtoons, Kakao Entertainment handled not only drama planning and production but also the original soundtrack (OST).

Kakao Entertainment will focus on global business with the newly secured funds. The goal is to realize the future vision of 'Beyond Korea' and lead the K-content wave. Senior Vice President Bae said, "We have secured resources to flexibly respond to the changing environment of the ultra-competitive global entertainment industry and accelerate global growth," adding, "We will secure a competitive edge in the global entertainment market and lead the global growth of the entire Kakao community."

Webtoons and web novels have already expanded into North America, ASEAN, and Greater China. A Kakao Entertainment official said, "We plan to plan and discover various IPs and introduce them to North America, Thailand, Taiwan, and Indonesia," adding, "They will undergo a more systematic and rapid localization process." The region receiving the most attention is North America, where Tapas Entertainment was acquired last year. This year, the company will apply business success know-how and concretize collaboration with local creators.

Kakao Entertainment is also committed to establishing a stable multi-studio system. It aggressively produces premium content by reinterpreting popular story IPs or expanding their universes. Works to be released this year include Netflix's 'Gyeongseong Creature' and 'Seungbu,' and Disney+'s 'Worst Evil.' A Kakao Entertainment official said, "The entertainment studio, which has presented new trends in new media content with fresh materials and witty planning, will continue bold experiments and challenges."

In the music business, the focus is on strengthening the global presence. As K-pop has become the center of the global music industry, the company plans to increase investment, enhance collaboration with partners, and diversify its portfolio. Through the advancement of a multi-label system, it will also promote overseas tours, promotions, and album releases for its affiliated artists.