SEOUL, Jan 12 (Reuters) – Tech conglomerate Kakao Corp (035720.KS) said on Thursday device Kakao Leisure secured a 1.2 trillion gained ($966.27 million) investment decision from top sovereign prosperity money, making it the greatest abroad financing in a South Korean material business.
The shift alerts investors’ bullish outlook for progress opportunity of Korean content and its “economic downturn-proof” tendencies when weak financial outlook has dried up liquidity in numerous other sectors, analysts explained.
Singapore’s GIC and Saudi Arabia’s Community Financial investment Fund (PIF) resolved to each and every commit 600 billion gained in the enjoyment business, area newspaper Korea Financial Day-to-day claimed on Thursday, citing unnamed expenditure banking resources.
Kakao, on the other hand, did not name the sovereign wealth resources 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 broader market place (.KS11).
“It is really major that we have been equipped to secure cash of this scale at a time when equally the Korean and world wide marketplaces facial area a ton of uncertainty and expense sentiment is weak,” Kakao Main Expense Officer Bae Jae-hyun stated.
Unlisted Kakao Enjoyment has a company portfolio ranging from K-Pop – like artist management – to shows, movies, and on the web-qualified, comparatively minimal-charge content material these as comics referred to as webtoons and serial world wide web novels.
“Webtoons and world-wide-web novels are steadily currently being turned into thriving dramas and other formats, so buyers assume this is superior benefit and timing to make investments in an intellectual residence holder,” mentioned Kim Jin-woo, analyst, Daol Investment decision & Securities.
“Possessing secured cash, Kakao Amusement may well search for to fortify its artist lineup that can superior target abroad markets via M&A or other ways.”
Saudi Arabia’s PIF independently exposed in a Japanese regulatory filing on Thursday that it boosted its stake in Nintendo Co Ltd (7974.T) from 5.01% to 6.07%. read through a lot more
The sovereign prosperity fund has increased its publicity to the Japanese online video gaming sector recently, owning taken stakes also in movie match businesses Nexon (3659.T), Capcom (9697.T), and Koei Tecmo (3635.T).
($1 = 1,241.8900 won)
Reporting by Joyce Lee Extra reporting by Makiko Yamazaki in Tokyo Enhancing by Chris Reese, Sherry Jacob-Phillips and Jane Merriman
Our Criteria: The Thomson Reuters Rely on Concepts.
