[Interview] Kim Young-jun, CEO of Nomus: "Entertainment Industry Growth Continues... Confident"

Established in 2019... Knocking on KOSDAQ after 6 years
"Synergies across content, commerce, performance, and fandom platform divisions... Continued growth"

"The entertainment industry is growing when you look closely, with money flowing from albums to performances. Nomus plans to grow steadily based on various businesses."

Kim Young-jun, CEO of Nomus. Photo by Nomus

Kim Young-jun, CEO of Nomus, revealed this goal of listing on KOSDAQ in an interview with Asia Economy.

Nomus operates comprehensive artist intellectual property (IP) platforms 'Wonderwall' and 'From'. It provides services such as content, commerce, performances, and fandom platforms. Established in 2019, the company has submitted its securities registration statement and aims to list on KOSDAQ in November. From is a fandom platform similar to DearU's 'Bubble'.

Kim Young-jun's background is unique. After majoring in Business Administration at Carnegie Mellon University in the U.S., he earned a master's degree in Economics at Columbia University Graduate School. His first job was as a fund manager at Daishin Asset Management. He entered the entertainment industry after working as a fund manager. He explained, "When I was a fund manager, I was in charge of entertainment and gaming sectors, and that experience naturally led me to this business."

Despite being in its sixth year since establishment, Nomus maintains a debt-free management. Additionally, it recorded an operating profit of 3.1 billion KRW in the first half of this year, achieving a turnaround to profitability, and is growing rapidly with increasing sales every year. Sales increased from 9.2 billion KRW in 2021 to 42.3 billion KRW last year. He said, "My experience in finance as an asset management company was helpful from the start, and maintaining a debt-free policy from the early stages was crucial. The main reason for growth was adapting well when the new business combining tech and IP began to emerge."

Nomus's expected IPO price band is 27,200 to 30,200 KRW. The anticipated market capitalization is about 291.3 billion to 323.5 billion KRW. Comparable companies include JYP Ent, SM, DearU, and YG PLUS. Their average price-to-earnings ratio (PER) is 23.54 times. This is lower than the average PER of 53.46 times that DearU received when it listed on KOSDAQ in 2021, despite operating similar businesses. This is due to the overall decline in the entertainment sector amid various controversies and shrinking album sales.

Although the current valuation may be disappointing, CEO Kim emphasizes that now is the right time to go public for growth. He explained, "I wonder what would have happened if we had listed last year, but since listing is not the end, securing funds and growing is more important."

CEO Kim stresses that while the market views the entertainment industry as shrinking, the reality is different. He analyzed, "Looking at the entertainment industry, the demand itself is increasing with more middle hardcore users who watch performances and buy affordable message subscriptions compared to heavy users who purchase albums. Moreover, fandoms are continuously developing in Asia, North and South America, and Europe." He added, "Additionally, K-pop is increasingly mentioned on various social media platforms such as X, Instagram, and Reddit, indicating continuous cultural growth."

He also explained that Nomus is continuously growing based on various synergistic businesses. For example, artists communicate with fans through From. Once fandoms are formed, performances such as fan meetings or concerts are held. During this process, merchandise (MD) is also sold. For small and medium-sized agencies, this allows a turnkey approach to business management.

He said, "We are not simply running platform and content businesses but also handling performances and MD, which creates synergy. For example, when holding performances or selling MD, all business divisions grow evenly by helping with audience attraction."

In particular, Nomus did not hide its confidence in the performance business. The company conducted the North American tour of the girl group Mamamoo last year and is responsible for overseas performances of Wheein and IU this year. He emphasized, "Although the company's history is short, we have carried out many projects and have a strong hold on North and South America. From attracting audiences to smooth execution, these are areas we are confident in."

Nomus plans to raise approximately 30.7 billion to 34.1 billion KRW through the IPO. Of this, 14.8 billion KRW will be invested in recruiting new artists, and 5.7 billion KRW and 10 billion KRW will be used respectively to enhance From's functions and secure working capital for large-scale overseas tours. The target for new artist recruitment is Japan. He explained, "Since Japan has consumption tendencies similar to Korea, we aim to expand fandoms there. For From, we plan to develop a model suitable for small and medium-sized agencies to promote mutual growth."

Finally, he expressed his determination to continue growing. He emphasized, "Our business model is diverse, steadily growing regardless of IP risks. After listing, we will enhance business divisions and expand regions while operating the company to increase value in the entertainment industry."