BTS creators ally with top entertainment firm to set up joint venture

Park Sae-jin Reporter Posted : 2018-08-01 09:40 Updated : 2018-08-01 09:40
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[Courtesy of Big Hit Entertainment]

SEOUL -- Helped by the explosive global popularity of K-pop band BTS, the group's agency has forged an alliance with CJ ENM, a top player in South Korea's entertainment market, to set up a joint venture.

Big Hit Entertainment was credited with nurturing BTS as a global K-pop band, but it still stands far behind the country's three heavyweights -- SM, YG and JYP -- in terms of brand power and revenue.

CJ ENM and Big Hit have agreed to establish an entertainment joint venture with an initial capital of 7 billion won ($62 million), according to Yonhap News Agency. CJ ENM would own 52 percent with the rest controlled by Big Hit.

The joint venture will be launched this month at the earliest if the two partners win approval from the Fair Trade Commission, a state corporate watchdog, Yonhap said.

CJ ENM, a top entertainment and mass media company in South Korea, has been the frontrunner in the expansion of Hallyu (Korean cultural wave). It has talent recruit reality shows including "Superstar K" and "Produce 101".