Kakao Entertainment, a South Korean content company, has secured a $960 million (KRW 1.2 trillion) investment from leading foreign sovereign wealth funds, making it the most significant foreign investment in the South Korean content industry.
The investment, acquired through a capital increase with a deposit transferred to a third party, was led by Saudi Arabia’s Public Investment Fund (PIF) with an investment of $480 million and Singapore’s PWARP INVESTMENT PTE, which invested most of the remaining $480 million.
CEO Stephan Kim said the investment would establish Kakao Entertainment as a leading global entertainment company by leveraging its digital networks and K-content expertise.
The company plans to expand its story division to global markets such as North America, ASEAN, and China, aggressively pursue IP business, and release popular South Korean IPs overseas through a systematic and rapid localization process.
Kakao Entertainment’s diversified intellectual property portfolio includes 10,000 webtoons and web novels, 70,000 songs and artists, and planning and production capabilities for music and video content and distribution capabilities based on platform networks.
This investment provides the company with the financial resources to accelerate its global growth and respond to the changing environment of the highly competitive global entertainment industry.
The move underscores the company’s growing interest in the South Korean entertainment industry and its recognition of the potential and value of K-Content in the global marketplace.
The investment also demonstrates Kakao Entertainment’s strength in the IP value chain and the growth potential that spans story, media, and music.
This is a significant development for the company, which aims to realize its vision of “Beyond Korea” and lead the global growth of the Kakao community.