사진 확대

Cube Entertainment (Cube Entertainment) announced in a public announcement on the 28th that it has signed a contract to distribute records and contents with Kao Entertainment (Kakao Entertainment).

The total contract amount is 130 billion won (including VAT), far exceeding the contract amount of 80 billion won signed by Cube Entertainment and Kakao Entertainment in 2022.

This is close to 60% of Cube Entertainment's consolidated sales of 218.2 billion won in its 2024 audit report.

According to the disclosure, the contract period is five years, and with this contract, Cube Entertainment will secure 80 billion won in a fixed amount in the name of advance payments, and will receive an additional 50 billion won depending on the conditions.

An official from Cube Entertainment said, "We have signed an additional advance payment contract by offsetting all 80 billion won in advance of the distribution contract signed with Kakao Entertainment in 2022 far earlier than the actual contract period of five years. This contract also has a five-year contract period, but if we expect the performance of our artists, including (G)I-DLE, who are still popular, and rookies to be unveiled in the future, we expect it to be fully offset within the contract period."

The official added, "As of the end of December last year, we will be able to secure about 240 billion won in funds up to the stock value of VT Co., Ltd., which currently owns 12%, including cash equivalents, and the confirmed advance amount to be paid through this contract."

"Based on the secured funds, we are able to secure liquidity, lay the foundation for flexible response to rapidly changing industrial environment changes amid the recent friendly signals of cultural exchanges between Korea and China, and have sufficient capacity to invest and support new artists as well as existing artists," he said.

He added, "As Kakao Entertainment is expanding its influence with global competitiveness in various business areas, synergy through additional cooperation is also expected."

Reporter Lee Sang-gyu