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S.Korea’s Kakao Enjoyment secures $966 mln financial investment from sovereign wealth cash

  • Biggest overseas expenditure in Korean material agency, co says
  • Small business consists of K-Pop, video clip, on the internet comics and novels
  • ‘Recession-proof’ nature of business probably a draw -analysts

SEOUL, Jan 12 (Reuters) – Tech conglomerate Kakao Corp (035720.KS) explained on Thursday device Kakao Enjoyment secured a 1.2 trillion received ($966.27 million) expense from foremost sovereign wealth funds, building it the largest abroad funding in a South Korean material enterprise.

The shift signals investors’ bullish outlook for expansion potential of Korean information and its “economic downturn-evidence” tendencies when weak economic outlook has dried up liquidity in many other sectors, analysts stated.

Singapore’s GIC and Saudi Arabia’s Community Investment Fund (PIF) decided to just about every commit 600 billion received in the entertainment firm, nearby newspaper Korea Economic Each day claimed on Thursday, citing unnamed investment decision banking sources.

Kakao, however, did not name the sovereign wealth cash in its assertion. PIF declined to remark, although GIC did not right away comment.

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

“It truly is considerable that we ended up equipped to protected funds of this scale at a time when both of those the Korean and world-wide marketplaces face a good deal of uncertainty and expenditure sentiment is weak,” Kakao Main Investment Officer Bae Jae-hyun stated.

Unlisted Kakao Leisure has a enterprise portfolio ranging from K-Pop – together with artist management – to shows, films, and on line-specific, comparatively lower-charge written content these types of as comics termed webtoons and serial internet novels.

“Webtoons and website novels are steadily getting turned into successful dramas and other formats, so buyers feel this is excellent value and timing to spend in an mental residence holder,” explained Kim Jin-woo, analyst, Daol Financial investment & Securities.

“Obtaining secured money, Kakao Amusement may find to fortify its artist lineup that can much better goal overseas markets by way of M&A or other means.”

Saudi Arabia’s PIF separately disclosed in a Japanese regulatory submitting on Thursday that it boosted its stake in Nintendo Co Ltd (7974.T) from 5.01% to 6.07%. read through additional

The sovereign prosperity fund has improved its publicity to the Japanese video clip gaming sector not long ago, having taken stakes also in movie activity providers Nexon (3659.T), Capcom (9697.T), and Koei Tecmo (3635.T).

($1 = 1,241.8900 gained)

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

Our Requirements: The Thomson Reuters Rely on Principles.