이 기사는 2021년 07월 08일 08시07분 thebell에 표출된 기사입니다

Kakao Entertainment has injected capital into one of its drama production units, Baram Pictures, which is expected to generate its first revenue this year.

Baram Pictures, which is wholly owned by Kakao Entertainment, said in a regulatory filing on Monday that it had raised 21 billion won ($18.5 million) in a rights issue, the largest fundraising since its acquisition by the entertainment giant in August 2020.

Given concerns about an unclear path to profitability, Kakao Entertainment has so far provided financial support to the company by giving it short-term loans. Founded in February 2017, Baram Pictures has not yet recorded revenue, with an operating loss widening to 2.2 billion won in 2020.

But the company is finally expected to start to generate revenue this year as two highly anticipated dramas produced in collaboration with other studios are set to be released in the second half of the year.

“Kingdom: Ashin of the North,” which starred popular actress Jun Ji-hyun, will be released on Netflix this month. Another drama starring Jun, “Cliffhanger,” will be aired on tvN in October. The company may even swing to an operating profit depending on the extent of the dramas’ success.

Kakao Entertainment acquired Baram Pictures to strengthen its ability to create original content. The studio is home to Kim Won-suk, director of many successful Korean dramas including “Misaeng: Incomplete Life” and “Arthdal Chronicles,” and drama writers including Park Hye-ryun, who wrote “I Can Hear Your Voice” and “While You Were Sleeping”.

Any improvement in the company’s earnings is likely to have a positive impact on its parent company, which is preparing for an initial public offering.

Apart from Baram Pictures, Kakao Entertainment owns several other drama and film production studios including Moonlight Film, Sanai Pictures and Story & Pictures Media. All of them except Story & Pictures Media recorded losses last year. (Reporting by Pil-woo Choi)