{"id":35392,"date":"2023-04-26T05:00:00","date_gmt":"2023-04-26T00:00:00","guid":{"rendered":"http:\/\/myanmarnewsgazette.com\/?guid=9b21cb51c46975dc981f98b524adf5d1"},"modified":"2023-04-26T05:00:00","modified_gmt":"2023-04-26T00:00:00","slug":"lead-regulator-to-review-kakaos-acquisition-of-sm-entertainment","status":"publish","type":"post","link":"https:\/\/myanmarnewsgazette.com\/lead-regulator-to-review-kakaos-acquisition-of-sm-entertainment\/","title":{"rendered":"(LEAD) Regulator to review Kakao’s acquisition of SM Entertainment"},"content":{"rendered":"
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.<\/P>
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The move by the Fair Trade Commission (FTC) came a month after Kakao and Kakao Entertainment acquired a combined 39.87 percent stake in SM Entertainment.<\/P>
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“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.<\/P>
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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.<\/P>
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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.<\/P>
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For example, as Kakao Entertainment operates South Korea’s top music streaming service, Melon, its merger with SM Entertainment, which releases albums, can be considered a “vertical merger.”<\/P>
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Thus, the FTC will look into possibilities of Melon modifying its algorithms to benefit singers from SM Entertainment.<\/P>
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Additionally, the watchdog will examine the potential for Kakao and SM Entertainment to enhance their market power by jointly launching new products or services, including emojis or other merchandise.<\/P>
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The review process takes 30 days, though it may be extended for up to 90 additional days, excluding any time required for document supplementation.<\/P>
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Source: Yonhap News Agency<\/P>
<\/P><\/p>\n","protected":false},"excerpt":{"rendered":"
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 (FTC) came a mon…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"yoast_head":"\n