June 17, 2024


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S.Korea’s Kakao Amusement secures $966 mln expense from sovereign prosperity money

2 min read
  • Largest overseas financial investment in Korean written content organization, co suggests
  • Business enterprise consists of K-Pop, video clip, on the internet comics and novels
  • ‘Recession-proof’ nature of organization probably a draw -analysts

SEOUL, Jan 12 (Reuters) – Tech conglomerate Kakao Corp (035720.KS) stated on Thursday device Kakao Entertainment secured a 1.2 trillion won ($966.27 million) investment decision from major sovereign wealth money, earning it the largest overseas funding in a South Korean information organization.

The move indicators investors’ bullish outlook for advancement probable of Korean content material and its “economic downturn-evidence” tendencies when weak financial outlook has dried up liquidity in quite a few other sectors, analysts said.

Singapore’s GIC and Saudi Arabia’s Community Investment Fund (PIF) resolved to every single devote 600 billion received in the entertainment agency, neighborhood newspaper Korea Financial Each day documented on Thursday, citing unnamed financial investment banking sources.

Kakao, on the other hand, did not title the sovereign prosperity money in its assertion. PIF declined to remark, even though GIC did not immediately comment.

Kakao Corp shares rose 1% in early morning trade, outperforming a .2% rise in the wider market (.KS11).

“It’s major that we had been in a position to safe cash of this scale at a time when both the Korean and world-wide markets experience a ton of uncertainty and financial commitment sentiment is weak,” Kakao Main Expenditure Officer Bae Jae-hyun reported.

Unlisted Kakao Entertainment has a organization portfolio ranging from K-Pop – such as artist administration – to exhibits, films, and on-line-focused, comparatively reduced-price tag articles this kind of as comics termed webtoons and serial world wide web novels.

“Webtoons and web novels are steadily becoming turned into thriving dramas and other formats, so traders believe this is fantastic value and timing to devote in an intellectual house holder,” reported Kim Jin-woo, analyst, Daol Expenditure & Securities.

“Owning secured funds, Kakao Enjoyment may possibly seek out to improve its artist lineup that can better concentrate on overseas markets by using M&A or other approaches.”

Saudi Arabia’s PIF independently revealed in a Japanese regulatory submitting on Thursday that it boosted its stake in Nintendo Co Ltd (7974.T) from 5.01% to 6.07%. browse more

The sovereign wealth fund has increased its publicity to the Japanese video gaming marketplace a short while ago, acquiring taken stakes also in online video game organizations Nexon (3659.T), Capcom (9697.T), and Koei Tecmo (3635.T).

($1 = 1,241.8900 won)

Reporting by Joyce Lee Further reporting by Makiko Yamazaki in Tokyo Enhancing by Chris Reese, Sherry Jacob-Phillips and Jane Merriman

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