Saudi Arabia mulling 800 billion won investment in Kakao Entertainment

Saudi Arabian Crown Prince Mohammed bin Salman Al Saud is the chairperson of the country's Public Investment Fund (PIF). [JOINT PRESS CORPS]

Saudi Arabia is mulling investing up to 800 billion won ($591.8 million) in Kakao Entertainment, according to local media outlets Tuesday.

Kakao Entertainment, a content subsidiary 73.6 percent owned by Kakao, runs webtoon and webnovel services, as well as music businesses.

The Public Investment Fund (PIF) of Saudi Arabia may invest 700 to 800 billion won in the local company with Singapore’s sovereign wealth fund GIC, according to local reports quoting investment bank sources.

Kakao Entertainment did not confirm the reports, saying that “nothing has been decided yet.”

Kakao Entertainment is inviting pre-initial public offering (IPO) investments for business expansion, especially for possible mergers and acquisitions. The goal is to attract some 1 trillion won before the IPO next year, though the schedule may be delayed due to unfavorable market circumstances.

Saudi’s PIF is making equity investments in content businesses such as game companies to lower the country’s dependency on oil.

PIF acquired a 9.14-percent stake in local game company Nexon for 2.42 trillion won, to become the second-largest shareholder. It is also the second-largest shareholder of NCSoft with an 11.9 percent stake.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]