Middle Hand
Chinese capital invested upwards of 3.3 trillion won (US$2.8 billion), taking over a big chunk of the Korean cultural content industry. Some industry experts insist that the Korean government quickly grasp the current state and devise effective countermeasures.
On Sept. 11, Rep. Kim Hak-yong of the Saenuri Party who is on the Education, Culture, Sports and Tourism Committee of the National Assembly, called for the ministry’s countermeasures against an influx of Chinese capital from China during a parliamentary inspection of the administration in Sejong City, claiming that Tencent was taking over Korean game companies by increasing its investments based on profits Tencent earned through the distribution of Korean games in 2007. Tencent has been publishing the Korean game Crossfire in China since 2007. In 2014, the company posted about US$7.2 billion in 2014, accounting for 8.6 percent of world game sales.
In Korea, the Chinese company invested 530 billion won (US$449 million) in CJ Games (currently Net Marble Games), 20 billion won (US$17 million) in Party Games, and about 130 billion won (US$110 million) in 4:33 Creative Lab.
Chinese capital is getting their hands not only on Korean games but also on Korean films. Hong Kong-based private equity fund Affinity Equity Partners took over the Korean entertainment agency Loen Entertainment by securing 52.56 percent equity. Chinese portal site Sohu.Com became the second largest shareholder of Keyeast Entertainment by investing 15 billion won (US$13 million) in the Korean entertainment company. These facts are indicative of Chinese capital expanding its influence over the Korean entertainment industry. Besides, China’s Wanda Media inked an MOU for cooperation and development in the film and video industry.
In the case of Chorokbaem Media, famous as the producer of “Oh My Ghost” and “Producer,” the company received 12 billion won (US$10 million) in investment from Hong Kong-based Entertainment Company Juna International, and transferred its managerial rights to the Chinese investor.
Rep. Kim also pointed out an outflow of excellent creators in the Korean cultural content sector such as talented TV drama producers, seasoned film directors, and screenwriters as a key issue worth paying attention to in addition to an influx of Chinese money.