Korea Business News Agency - NSP NEWS AGENCY.

(Seoul=NSP News Agency) soon ki Lee Journalist = Kakao announced that it had secured a 9.05% stake in SM Entertainment.

It is a method of acquiring 1.23 million new shares issued by SM Entertainment in the form of a third-party allocation paid-in capital increase and securing 1.14 million shares(based on conversion to common stock) through the acquisition of convertible bonds. Kakao will become the second largest shareholder of SM Entertainment through this investment.

Along with this investment, Kakao, Kakao Entertainment, and SM Entertainment signed a three-way business agreement.

The three companies plan to take the lead in enhancing the global status of K-culture through multilateral business cooperation in a rapidly changing music and content environment.

In the future, Kakao Entertainment and SM Entertainment will cooperate to strengthen IP competitiveness, such as promoting global management business together by utilizing networks such as overseas partners of each company, and co-planning K-POP artists through global auditions.

“Through this investment and cooperation, we expect that the two companies will be a great help to each other in responding together to the fierce competition in the global music and content market and targeting the global mainstream of K-content,” said the CEO of Kakao Community Investment, “Through cooperation, we will contribute to the expansion of K-Culture’s global influence.”

NSP News Agency soon ki Lee Journalist s8789@nspna.com
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