April 19, 2024

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[THE INVESTOR] A growing number of Chinese IT companies are investing in Korean entertainment companies, in response to the rising popularity of Korean culture and entertainment.

Chinese companies poured in more than 100 billion won (US$ 85.3 million) in the local entertainment industry from November last year to June this year, industry sources say.

Chinese game developer Kunlun Technology’s Korean office is mulling to invest in a midsized entertainment agency, local news reported on June 28. 

In May, China’s social media giant Tencent and its mobile ticketing service Weiying Technology made an investment of US$85 million in YG Entertainment, a hallyu powerhouse agency that houses singers Psy, Big Bang and 2NE1, among others.

China’s leading game company Longtu Game’s Korean branch Longtu Korea acquired real-time broadcasting site Popcorn TV last year and also a metal forging products manufacturer Yonghyun BM, which is planning to start its entertainment business, this year.

Recently, Locojoy International, Chinese game company Locojoy’s Korean subsidiary, issued new stocks and convertible bonds worth 35 billion won to invest in entertainment businesses.

“With the improvement in Chinese consumption levels, the demand for entertainment has surged,” said an industry official. “The Chinese entertainment industry is very dependent on mobile phones, unlike hallyu that expanded via TV and online. Therefore Chinese IT firms will continue to invest in the Korean entertainment industry.”

By Ahn Sung-mi (sahn@heraldcorp.com)