■ Program Name: ET Integrated Newsroom
■ Name of the corner: ET WHY?
■ Broadcast Time: November 24 (Thursday) 17:50~18:25 KBS2
■ Performer: Sa Young-gwan, Deputy Manager of Kyobo Securities Smart Sales Department
■ Homepage
https://news.kbs.co.kr/vod/program.do?bcd=0076&ref=pMenu#20221124&1
[앵커]
This person, who is making headlines all over the place these days, is Saudi Crown Prince bin Salman. Not long ago, I met with the heads of large domestic conglomerates and promised business cooperation of 40 trillion won in one day, and this time I hear that they will invest heavily in entertainment. Domestic related stocks are excited along with anticipation for the containment of China’s Hallyu, that is, the rise of the Korean Wave. Let’s take a look at Sa Young-gwan, deputy manager of Kyobo Securities’ Smart Sales Department. Chief, how are you?
[답변]
Hello?
[앵커]
I thought Saudi Arabia was only good at investing, but they were also good at football.
[답변]
OK. As you all know, crude oil prices have skyrocketed recently. As a result, Saudi Arabia’s national wealth also increased rapidly. So, it seems to be an explanation that my stamina also increased at the same time.
[앵커]
The President of the United States Biden once announced that he would do international bullying over empty Salman.
[답변]
OK.
[앵커]
If you look at the current atmosphere, how do you feel about becoming internationally famous these days? What is this feeling?
[답변]
First of all, I think it was classified as an unfriendly country to the United States. In addition, the assassination attempt, based on these things, gave Biden a lot of emphasis on human rights and tried to make him an outsider. However, international oil prices did not move that way. So, even in OPEC, Saudi Arabia is responsible for almost a third. It is a country that clearly holds hegemony in the oil field. I think those are the factors that have suddenly raised the status of Saudi Arabia recently.
[앵커]
So, this time, it was revealed that they would invest in one company, and now domestic investors want something like this, Kakao.
[답변]
OK.
[앵커]
I will invest in cacao. To be precise, I will invest in Kakao Entertainment. Is there any relationship between the hollow man and the founder Kim Bum-soo?
[답변]
Looking at it this way, it seems a bit similar. It seems to be somewhat similar, but rather than a relationship, I think there is a lot of interest in this type of entertainment and media-related industries in Saudi Arabia. Because in the first quarter, we have already invested more than 3 trillion won in NCsoft and Nexon.
[앵커]
game companies.
[답변]
And even after that, CJ ENM and SM were interested in such K-Korean Wave content to the extent that they signed contracts related to the metaverse. So, I think those things were the background that led to the investment in Kakao Enter, which is trying to show a comprehensive approach to an entertainment company in the end.
[앵커]
How big is the investment?
[답변]
About 800 billion is expected. First of all, I think the Investment Authority of Singapore will lead the execution. Therefore, the industry now estimates that the Investment Authority of Singapore and the Saudi National Wealth Fund will invest about 800 billion won.
[앵커]
It looks a bit small because only Salman, who is so empty, released an investment package worth several hundred trillion won this time and made 800 billion won.
[답변]
It looks a bit small.
[앵커]
You say that this is not a small amount for one company anyway.
[답변]
yes That is correct. When I estimated the corporate value, I estimated about 10 to 12 trillion won. However, if it is won 800 billion, securing a share of 8% does not seem like a small investment.
[앵커]
By the way, isn’t this Crown Prince bin Salman also known as a BTS fan?
[답변]
OK.
[앵커]
Then why not invest in Hive, BTS’s agency, Kakao Entertainment?
[답변]
Unfortunately, there was an issue with BTS temporarily suspending group activities. So, I’m not sure if the fact that I can’t see BTS as a complete group is because of my personal fan spirit. However, Kakao Entertainment also has an outstanding star named IU. Overall, I believe that this status, which is reborn as a comprehensive entertainment company that ensures not only dramas and movies, but also audio sources through the acquisition of audio sources and melons, is highly evaluated.
[앵커]
Kakao Entertainment is talking about an IPO next year, right?
[답변]
OK.
[앵커]
Listed on Nasdaq, there is talk of that.
[답변]
There is talk of going public on Nasdaq. In fact, the industry is currently showing moves to list on NASDAQ with JP Morgan as a whole. And they are known to be in touch with foreign investors and private equity funds. In Korea, it seems that we are currently discussing plans to invest about 100 billion won with a first generation indigenous private equity fund called H&G. However, nothing has been confirmed so far.
[앵커]
So I wonder if Bin Salman’s intention is to secure a stake in the business in another area, such as entertainment, with the money he earned from the oil business.
[답변]
OK.
[앵커]
What specifically do you want to achieve? What Bin Salman wants to take by investing in Korean entertainment stocks.
[답변]
I do not know. In fact it is not an easy decision to invest in this type of entertainment in these difficult times. Because it is classified as a high growth stock, it can be difficult to invest in these times when there is not much liquidity in the market and where there is concern about an economic recession. However, I believe that this is the right time to invest such a large amount. Because the valuation of the company itself used to be up to this point when liquidity was abundant. However, he seems to have decided that he could secure more shares with the same amount in a situation where his eye level has now dropped to some extent. Does Saudi Arabia not expect the economic recession that everyone is predicting will not come?
[앵커]
So, despite the recession, there is something promising for these high-tech platforms like NFTs and metaverses.
[답변]
OK.
[앵커]
Do you think this judgment is included?
[답변]
Probably, when an economic downturn or something like this does not come as much as we are concerned about it, the market situation will be ready for liquidity to turn to risky assets in the market once again. When that happens, entry companies will probably expand their business areas into these NFTs and metaverses that can receive high value. I think you rated those parts highly.
[앵커]
Isn’t there a rumor in the industry that Kakao will take over SM Entertainment?
[답변]
OK.
[앵커]
Is it not possible that Bin Salman made such an investment plan by considering the SM?
[답변]
I think there are enough possibilities for me to consider. Because, as I said earlier, we preemptively signed business agreements with entertainment companies such as CJ ENM and SM. It is believed that such parts may eventually lead to a real contract.
[앵커]
So, including the SM Entertainment stock that you just mentioned, entertainment stocks, media stocks, and content stocks yesterday and today almost reached the top limit yesterday, and today they are very hot.
[답변]
OK. The stock price trend was good today.
[앵커]
Does all this translate into a hollow salman effect? Or is there another factor?
[답변]
There was definitely a hollow Salman effect, I think it’s hard to deny these parts. But recently, I heard news that the Chinese OTT side, these parts, and the Korean Wave will be broadcast again.
[앵커]
OTT, Chinese OTT will broadcast Korean movies?
[답변]
OK. So, was it not because the Korean content was released a little and the Hallyu ban was lifted These expectations seem to have been a factor in the sudden rise in the stock prices of entertainment stocks and media stocks, which has been difficult . so far.
[앵커]
This is a story of the Korea-China summit, that is.
[답변]
Yes That is correct.
[앵커]
Our government made an announcement.
[답변]
Yes, we did.
[앵커]
Riverside Hotel is OTT in China?
[답변]
Yes That is correct.
[앵커]
It was made in 2018, but this movie is coming soon. Are you already showing now? Do you broadcast?
[답변]
I know it hasn’t aired yet. I know that once this contact was made, discussions regarding the distribution of this film to global OTT and Chinese OTT were aligned.
[앵커]
But why did China choose this film, a film four years ago that was not so successful at the box office?
[답변]
I do not know. I don’t know exactly why either. First of all, the director Hong Sang-soo is considered a representative Korean director. So, I think there was a part where I thought it would be a bit meaningful to screen a director’s work for such people.
[앵커]
OK. However, just because this movie aired, the Hallyu ban was lifted Is it right to have such excessive expectations? Because this kind of raising the Han-Korean law is meaningful only when it comes from the Chinese authorities, right? There is no mention of it in the Chinese media.
[답변]
There was no mention in the media. Another is that China is suffering too much from the US right now. There are appearances of trying to exclude China entirely from various semiconductor and other fields. In the end, these things hurt so much when Russia started the Ukraine war and was hit with this sting. That is why the United States completely rejects China, thinking that it would be difficult if China’s uppercut really came. In such an atmosphere, Korea plays a very important role in China when it comes to memory semiconductors. Since we do a large part of the export volume, I think he is trying to release it little by little with this part of the ban on Korea, which is mixed with China’s concerns and concerns about the semiconductor parts that blocked at source.
[앵커]
Therefore, excessive expectations for raising the Hallyu Law should be avoided.
[답변]
I still think so.
[앵커]
Because of that, it can be a bit hasty to link the investment directly to entertainment.
[답변]
It could be.
[앵커]
OK. At times like this, I think you need to judge yourself well and decide if this is a theme or a performance-based stock that is expanding. So far, I have been with ET WHY, the deputy commissioner. Thank you for your words today.
[답변]
Thank you
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