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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Kakao Entertainment has established a new subsidiary in the United States, positioning itself in the heart of the global entertainment industry to expand its reach. This move is interpreted as part of a strategy to counter recent market challenges, including slowing growth, poor performance, and speculation about a potential sale.
According to the IT industry on the 29th, Kakao Entertainment established its subsidiary, ‘Kakao Entertainment Global (KEG)’ in the U.S. last month. The current co-CEO of Kakao Entertainment, Jang Yun-jung, who leads the company's overseas business, will head KEG. KEG is based in Los Angeles, California, the epicenter of the global entertainment industry, Hollywood.
Kakao Entertainment plans to use KEG as a global hub for its core businesses, such as music and media, and expand its presence in international markets. Additionally, the subsidiary will explore new business opportunities by discovering new intellectual properties (IP) locally.
Kakao Entertainment is a key subsidiary that Kakao has been cultivating for its global expansion. However, it has struggled with poor performance, recording net losses for three consecutive years. Its revenue also declined.
Last year, Kakao Entertainment's consolidated revenue was 1.8128 trillion KRW, falling short of the previous year’s 1.8735 trillion KRW. Industry insiders speculate that Kakao Entertainment will focus on not only expanding the global reach of domestic artists but also directly nurturing overseas talent in an effort to recover from its poor financial performance.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
