[
THE INVESTOR] Despite the seemingly limitless rise of Korean entertainers in and out of country, their companies are still finding it difficult to go public.
The most recent bad news came from DreamT Entertainment. The management company of popular band Girls Day has withdrawn its plans to merge with
Golden Bridge SPAC No.4 and list the firm, according to data released by Korea Exchange on July 25.
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DreamT Entertainment's popular band Girls Day |
Although the company posted 16.1 billion won (US$14.16 million) revenue last year with net profit of 800 million, “KRX has pointed out that it is not big enough to shift from KONEX to KOSDAQ,” the country’s secondary bourse, according to a source with knowledge of the IPO preparations.
Boy band Beast’s
Cube Entertainment successfully listed on KOSDAQ last year on its second attempt after it withdrew the application when told its control over the company is too weak.
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Cube Entertainment's boy band Beast |
“Entertainment is a high-risk high-return industry and the bourses are applying a strict set of criteria to protect investors,” said a securities expert.
Drama production company Creative Leaders Group 8 also canceled its merger with Dongbu SPAC No.4 in May, giving up plans to be listed. As a production company’s success hinges on whether a single project makes it into the three major broadcasting company’s programs, it can be a hindering factor for investment, experts say.
By Hwang You-mee (
glamazon@heraldcorp.com)
