KDB hits jack­pot through in­vest­ment in BTS, ‘Par­a­site’

The Korea Times - - FRONT PAGE - By Lee Min-hyung mh­[email protected]­re­atimes.co.kr

The Korea De­vel­op­ment Bank (KDB) has hit the jack­pot by mak­ing suc­cess­ful in­vest­ments in boy band BTS and Os­car-win­ning film “Par­a­site.”

The state-run bank has in­vested in four funds worth a to­tal of 26.9 bil­lion won ($22.74 mil­lion) for Big Hit En­ter­tain­ment, the mu­sic la­bel of BTS, since 2011. The funds reaped profits of 213.3 bil­lion won on the global success of the band.

“To be spe­cific, KDB re­al­ized a re­turn of 75.1 bil­lion won from its di­rect in­vest­ment of 12 bil­lion won be­tween 2011 to Novem­ber 2019,” a bank of­fi­cial said.

As the seven-mem­ber idol group con­tin­ues to thrill au­di­ences world­wide, the en­ter­tain­ment firm also en­joyed whop­ping growth in sales and op­er­at­ing profits. The com­pany is ex­pected to be­come the na­tion’s largest mu­sic la­bel af­ter its planned ini­tial pub­lic of­fer­ing (IPO). It is es­ti­mated its mar­ket cap­i­tal­iza­tion will reach as high as 2.8 tril­lion won af­ter the IPO.

KDB Cap­i­tal, the in­vest­ment af­fil­i­ate of the state-run bank, in­vested 670 mil­lion won in the Os­car-win­ning film “Par­a­site,” through a joint fund with Cape In­vest­ment & Se­cu­ri­ties. The cin­ema fund is worth 10 bil­lion won, with 1.74 bil­lion won al­lo­cated for the pro­duc­tion of “Par­a­site” alone.

The ex­act re­turn on in­vest­ment has yet to be cal­cu­lated, but KDB is ex­pected to gen­er­ate sig­nif­i­cantly higher re­turns from its ini­tial in­vest­ment due to the film’s re­sound­ing global success.

The in­vest­ment arm of the staterun bank has so far in­vested in 42 lo­cal movies, such as “Exit,” and

“Great Bat­tle,” in the past three years.

“We came to re­al­ize the global com­pet­i­tive­ness of Korea’s cul­tural con­tent with the success of ‘Par­a­site’ and BTS,” the of­fi­cial said. “The bank will keep leading the in­no­va­tion and growth of the lo­cal cul­ture in­dus­try by find­ing more promis­ing con­tent and mak­ing con­tin­u­ous in­vest­ments.”

KDB has also formed an in­vest­ment fund worth 500 bil­lion won for the lo­cal cul­ture in­dus­try. The in­vested cap­i­tal goes to fund growth in ar­eas such as film, mu­sic, me­dia, drama and an­i­ma­tion.

“We have ex­e­cuted in­vest­ments worth 53 bil­lion won out of the fund for the lo­cal movie in­dus­try for the past decade,” the of­fi­cial said.

The bank said it would fur­ther help the cul­ture in­dus­try here by ex­pand­ing its global pro­file through di­rect in­vest­ment and build­ing uni­corn com­pa­nies in rel­e­vant ar­eas.

Di­rec­tor Bong Joon-ho

K-pop boy band BTS

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