regulator-Kakao deal
Regulator to review Kakao's acquisition of SM Entertainment
By Kang Yoon-seung
SEOUL, April 26 (Yonhap) -- South Korea's antitrust regulator said Wednesday it has launched a review on South Korean tech giant Kakao's acquisition of a stake in SM Entertainment, the K-pop agency behind EXO, Aespa, and NCT.
The move by the Fair Trade Commission came a month after Kakao and Kakao Entertainment acquired a combined 39.87 percent stake in SM Entertainment.
"As the merger is expected to give a significant impact on the entertainment industry down the road, including the K-pop sector, we plan to thoroughly examine the deal under the standards and procedures stipulated in the law," the FTC said.
Kakao is a leading IT firm that operates KakaoTalk, the top mobile messenger app here, as well as No. 2 online portal Daum. The company also has music streaming services as well as a webtoon platform under its wing.
The FTC described the deal as "a merger between a general content company and a K-pop firm," noting that their businesses overlap each other.
The reviewing process is expected to take 30 days, although it can be extended up to 90 days, if necessary.
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