FSN Completes Acquisition of Hyper Corporation... "Accelerating Growth"

FSN, a KOSDAQ-listed company, announced on the 1st that it has finalized the acquisition of Hyper Corporation through the payment of funds from a paid-in capital increase. This completes the establishment of a two-track system consisting of FSN-centered brand accelerating and advertising marketing business and Hyper Corporation-centered life solution-based new tech business.

In February this year, FSN acquired existing shares of Medipron and simultaneously announced participation in a third-party allotment paid-in capital increase. The main point was to combine Medipron's bio healthcare capabilities with FSN's marketing and tech know-how to advance the next-generation life artificial intelligence (AI) solution business. At the same time, FSN plans to significantly subdivide its accelerator business into client, brand, and platform sectors to maximize expertise and accelerate growth. FSN's accelerator business will be led by CEO Seo Jeonggyo, while Hyper Corporation's life AI solution business will be spearheaded by CEO Lee Sangseok, each aiming to enhance their respective expertise and growth potential.

Medipron, newly incorporated into FSN's group, changed its name to Hyper Corporation and quickly embarked on new business ventures. Hyper Corporation laid the foundation for its life solution business by acquiring shares in FSN's core tech affiliates Emotion Global, Finger Labs, and MakeUs. The business structure was categorized into bio healthcare, senior, and IP (intellectual property) & content sectors targeting the entire life cycle. Additionally, the fandom content membership platform 'Xclusive' officially launched with the release of the BTS Hwayangyeonhwa-based secondary creation drama ‘Begins≠Youth,’ marking the start of new business.

Starting with Xclusive, Hyper Corporation is continuously expanding its life AI solution domain. Recently, it secured the nation's largest senior and junior database (DB) by acquiring 'Promom Kinder' and 'Blue Tiger,' the industry's top two premium English membership clubs. Along with these acquisitions, Hyper Corporation collaborated with Samsung Leisure Center and Lexus to launch the country's first senior membership club pilot, positioning itself as a leader in the emerging low birthrate and aging population industry.

Through Hyper Corporation, FSN has created an environment that allows it to enter the promising future business of life AI solutions while focusing on its core advertising marketing-based accelerator business.

Boosterz, a subsidiary responsible for the accelerator business, achieved record-high performance last year and recently made an equity investment in 'Ujoo Tech,' the manufacturer and seller of the domestic comfortable shoe brand ‘Le Mouton.’ This is expected to lead to another record performance this year and significantly increase the sales proportion of this sector within FSN.

Although the equity value of Hyper Corporation reaches approximately 50 billion KRW, FSN's current corporate value is highly undervalued. FSN explained that there are many factors for future corporate value re-evaluation, including additional brand growth through Boosterz and the operation of various proprietary platforms and AI solution businesses.

FSN CEO Seo Jeonggyo stated, "Through the acquisition of Hyper Corporation, we have entered a promising future business based on life AI solutions, and the tech-based companies under FSN have also restructured their business around Hyper Corporation to maximize synergy. Efforts to simplify the previously complex business structure and maximize efficiency through management optimization are successfully concluding."

He added, "As the two core businesses, brand accelerating and life AI solutions, are successfully taking root, we will quickly leap forward as a future innovative company with both profitability and growth potential, and we expect the undervalued corporate value to be re-evaluated."