Sonokong Secures 33 Billion KRW Investment, Aiming to Become a Content and Mobility Convergence Company

Sonokong announced on June 30 that it has successfully secured a total investment of 33 billion KRW, accelerating its transformation from a simple toy company into a comprehensive growth company encompassing both content and mobility sectors.

Sonokong disclosed that on June 27, it issued convertible bonds worth 5 billion KRW and 3 billion KRW to KB Securities (Trustee: Pume General Private Equity Investment Trust No.1 Fund) and HK Mobility Company, respectively, and completed the payment. These correspond to the 12th (3 billion KRW) and 13th (5 billion KRW) rounds of convertible bond issuances.

This funding follows the issuance of the 11th round of convertible bonds worth 20 billion KRW and a third-party paid-in capital increase of 5 billion KRW earlier this month. Although the total amount was slightly reduced from the originally planned 37 billion KRW, the company managed to secure a substantial 33 billion KRW in just one month.

Sonokong plans to strategically invest these funds in several areas: strengthening its asset base through the acquisition of a new office building in the Gangnam area of Seoul; expanding and securing supply for the Nintendo Switch2 distribution network; advancing its character IP-based content business; and building a new used car platform business.

A company representative explained, "The initial response to Nintendo Switch2, which has returned after eight years, has exceeded expectations, and the Pop Mart vending machine vendor business is also showing rapid growth." The representative added, "Stable revenue from imported new car distribution and our declaration to enter the used car platform market have prompted investors to respond positively to Sonokong's future growth potential."

Sonokong has been a leading brand in Korea's kids content market in the past, with titles such as 'Turning Mecard' and 'Hello Carbot.' Although the company has experienced sluggish performance in recent years, this investment marks a turning point, and Sonokong is expected to pursue a structural transformation of its overall business through strengthening content based on existing IPs, expanding its distribution network, and entering new business areas.

The company stated, "This investment is not merely about securing finances, but serves as a starting point for diversifying our business portfolio and improving our corporate structure," adding, "In the mid- to long-term, we aim to become a future-oriented content and distribution convergence company, based on our new Gangnam headquarters."