A Chinese private equity fund Gold Finance Group acquired majority stake and management rights of Korean management agency Fantagio Entertainment for 30 billion won ($26.6 million), the agency said Thursday.

Fantagio announced early Thursday morning that the Chinese firm became the largest shareholder, holding a 27.56 percent stake in the company, and in doing so acquired management rights.


“Chinese firms have expanded their presence Korea’s entertainment business as leading investors. However the latest acquisition marks the first time that a Chinese company has obtained management rights of a major Korean entertainment agency listed on the Kosdaq market,” said Yoo Sung-man, analyst at HMC Investment Securities.

Following the official announcement, the agency’s shares opened slightly higher at 2,520 won, a 2.02 percent increase from a day before. 


Fantagio Corporation is a leading Korean entertainment company that represents 29 artists ranging from actor Seo Kang-joon, who starred in the hit Korean drama “Cheese in the Trap,” to members of popular project K-pop girl group I.O.I.

The private equity fund, which mainly focuses on city infrastructure-related services, said it chose to buy the agency as part of its project to develop Zhangjiajie, located in the northwest of China’s Hunan province, into a global tourist attraction.

“Recognized tourist destinations have unique characteristics. We believe that China’s Zhangjiajie city can advance to a cultured city tied with Korean cultural contents,” said Wei Jie, chief executive of Gold Finance Group, at the 17th World Knowledge Forum in Seoul.

Gold Finance Group is a private equity fund established in 2008, based in Hangzhou, China. It runs an operating fund estimated to worth 30 trillion won, and has branches in 50 cities across five countries, including four listed companies in Hong Kong and China.

“Although we will have to see how things proceed, as for now, the inked deal is welcome news for Korea’s entertainment industry, which has been hit hard by the country’s frosty ties with China. Investments by Chinese firms will begin to bounce back up from early next year,” Yoo said.

Relations between South Korea and China has been chilly, after the Korean government’s decision to deploy an US anti-missile defense system in the country. Korean actors have reportedly been dropped from Chinese productions. 

By Kim Bo-gyung (lisakim425@heraldcorp.com)