Kakao Entertainment raises $930M from Saudi's PIF and others

Korea-based anime giant Kakao Entertainment has raised $930 million from investors, including Saudi Arabia's Public Investment Fund (PIF). This is one of the largest financing rounds in Korea, at a time when there is funding slump.

The company is raising $1.2 trillion by issuing over 2.26 million shares at $255,116 won a piece to Pwarp Investment and PIF. The deal follows Saudi Arabian Crown Prince Mohammed Bin Salman's visit to Seoul in November 2022.

Kakao Entertainment runs a slew of apps that publish online shows and novels, and has produced a few shows for Netflix. The capital will be used to expand its content.

The company has been planning for a New York IPO since 2021, and has been expanding its businesses overseas by acquiring the likes of Softbank-backed Radish and Tapas Media.

Meanwhile, Saudi Arabia has been increasing its investments and business ties with Korean companies. The fund has also become a major shareholder of NCSoft Corp. as well as Tokyo-listed Nexon Co.

The Middle Eastern sovereign wealth funds will be stronger in the current market conditions, the Global SWF's 2023 annual report stated earlier this month. According to the report, the funds doubled their investments in Western economies—the United States and Europe—from $21.8 billion in 2021 to $51.6 billion in 2022.