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Kakao M Corp.
Native name
주식회사 카카오엠
(full)
(주)카카오M
(shortened)
FormerlySeoul Records (1978–2000, 2005–2008)
YBM Seoul Records (2000–2005)
LOEN Entertainment (2008–2018)
Company typePublicJusikhoesa (J.H.)
Industry
GenreVarious
FoundedOctober 1978;46 years ago(1978-10)
FounderMin Yeong-bin
DefunctMarch 2, 2021(2021-03-02)
FateMerged intoKakaoPage,subsequently renamedKakao Entertainment,business and subsidiaries were put up as the Kakao Entertainment M Company division
SuccessorKakao Entertainment
Headquarters
Seoul
,
South Korea
Number of locations
3 (see list)
Area served
Worldwide
Key people
(Until March 2, 2021)
Stephan Kim (CEO)[1][2][3]
Kim Young-suk (EVP/Head of Music Content Company)
Jang Sai-jung (EVP/Head of Video Content Company)[a]
Services
  • Music Production
  • Media Production
  • Record Distribution
  • Licensing
  • Publishing
RevenueIncreaseUS$323.2 million (2014)[4]
IncreaseKRW65.9 billion (2015)
KRW58.4 billion (2014)[4]
IncreaseKRW50.6 billion (2015)
KRW45.7 billion (2014)[4]
Total assetsIncreaseKRW303.8 billion (2014[4])
Number of employees
361 (as of October 2016(2016-10))[4]
ParentYBM Group (1978–2005)
SK Group(2005–2016)
Affinity Equity Partners(2013–2016)[5]
Kakao Corp.(2016–2021)[6][7]
Divisionssee list
Subsidiariessee list
Korean name
Hangul
카카오 M
Revised RomanizationKakao M
McCune–ReischauerK'ak'ao M
Websitekakao-m.com

Kakao M(Korean:카카오M;formerlySeoul Records,YBM Seoul RecordsandLOEN Entertainment) was a South Korean entertainment company established by Min Yeong-bin in 1978. It was one of the largest co-publisher companies in South Korea. The company operated as a record label, talent agency, music production company, event management, concert production company, and music publishing house.

As of 2015,the company was the leading record company in South Korea by net revenue according to the statistics compiled by theKorea Music Content Industry Association(KMCIA) through theGaon Music Chart(30.4%); it was also the second leading company in terms of album sales (25.4%).[8]LOEN Entertainment became a subsidiary ofKakaoin January 2016 and was subsequently renamed two years later.[6]

Online music sales accounted for most of the company's profit, with 93.9% of revenue coming from online music sales. The label also distributed CDs of some other entertainment agencies in South Korea through its branch1theK,but made less than 5% of its revenue through them.[9]

On March 2, 2021, the company became defunct uponmergingintoKakaoPage.[10]The merger resulted in the formation of a new company,Kakao Entertainment.[11]

History

[edit]

1978–2008: Founding of Seoul Records

[edit]

Kakao M was founded as Seoul Records in 1978 by Min Yeong-bin as a subsidiary of YBM Sisa, a company mainly involved in creating language-learning tapes.[12]The company was officially registered in 1982, and in 1984 it began to produce and distribute records of classical and traditional music. It was registered as aventure capitalcompany in 1999 when it began to sell albums while operating an online shop. In 2000, the company's name was changed to YBM Seoul Records and it began to operate onKOSDAQ.The company joined theIFPIin 2003. Korean conglomerateSK Telecombought a 60% share of the company in 2005, and YBM Seoul Records subsequently became part of SK Group.[13]

2008–2016: Name change to LOEN Entertainment

[edit]

As of 2008, the company was known as LOEN Entertainment.LOENstood for:Live On Entertainment Networksand LOve + ENtertainment

LOEN took charge of SK Telecom's online music distribution service,MelOn,in 2009. MelOn is currently the most used online music sales site in South Korea.[14][15]

In 2012, the company signed a deal with streaming siteVikiso that content from their artists (such asIU,Brown Eyed GirlsandDrunken Tiger) would be featured on their site.[16]

In August 2012, the recording artists under LOEN collaborated to release a collaborative EP titledLOEN Tree Summer Storyunder the collective title 'LOEN Tree'.[17]

On July 18, 2013,Affinity Equity Partners,through its subsidiary Star Invest Holdings Ltd., bought 52.56% of LOEN Entertainment's shares, leaving SK Group with only 15%.[5]Five months later, Star Invest Holdings acquiredRealNetworks, Inc.'s 8.83% stake in the company.[18]The company was reorganized to include two labels: "LOEN Tree" (Jo Yeong-cheol) and "Collabodadi" (Shinsadong Tiger).[19]

On December 18, 2013, LOEN Entertainment acquired 70% of shares inStarship Entertainment,making it an independent subsidiary of the company.[20]

2016–2021: Acquisition by Kakao and name change

[edit]

On January 11, 2016, LOEN Entertainment was acquired byKakaoCorporation.[6][7]

On May 11, 2017, LOEN Entertainment announced its strategicdramaproduction alliance withCJ E&M's drama production subsidiaryStudio Dragon Corporation.Among the plans under the alliance is producing dramas based onweb novelsandwebtoonsonKakaoPageandDaumWebtoons (which copyrights are managed byPodotree,the web literature subsidiary of Kakao).[21](LOEN Entertainment first entered the drama production industry three years ago through the cable-web dramaAnother Parting,which starredSeo In-gukandWang Ji-won.) On August 25, LOEN Entertainment announced that its joint venture with Studio Dragon will be called asMega Monster.[22]

The company has also signed actressKim So-hyunthrough setting up her own independent label,E&T Story Entertainment,which is led by her long-time manager Park Chan-woo.[23]

Upon approval by the company's board of directors in a December 20 meeting, the company is known asKakao M Corporation(Korean:주식회사 카카오엠) since March 23, 2018.[24]The letterMin the new corporate name stands for three things:Melon(the company's flagship online music service),Music(the company's core business) andMedia(another business that the company will advance to in the future). The company will now also have a corporatecatchphrase,We Entertain.[25][26]

Barely a month before the company's relaunch under its new name, Sean Seong-hoon Park resigned from both his positions as CEO of the company and chief strategy officer ofits parent company,and later moved toNetmarble Games.He was replaced by Melon division head Lee Jae-wook.[27]

On February 28, 2021, Kakao M's music was removed fromSpotifyafter its licensing deal with the streaming service expired. They had addressed the removal in a statement, citing the streaming service as the party who had ensued it.[28]On March 11, 2021, Kakao M renewed its licensing deal with Spotify.[29]

In March 2021, Kakao M and KakaoPage merged into a company namedKakao Entertainment,while having its own representative system under the name "M Company" there.[30]

Corporate identity

[edit]

Company name

[edit]

The company name was Kakao M, the letterMstanding for:

  • Melon(the company's flagship online music service)
  • Music(the company's core business)
  • Media(another business that the company would advance to in the future)

Logos

[edit]
  • The company's logos as YBM Seoul Records (2000–2008)
    The company's logos as YBM Seoul Records (2000–2008)
  • The company's logos as LOEN Entertainment (2008–2018)
    The company's logos as LOEN Entertainment (2008–2018)
  • The company's logos as Kakao M (2018–2021)
    The company's logos as Kakao M (2018–2021)

Catalog numbers

[edit]

As of 2015,Kakao M used two types ofcatalog number codesfor its releases: the L10000**** series (later at the -5000 suffix) and the L20000**** series (later at the -1000 suffix).

Controversies

[edit]

Price fixing

[edit]

2011
LOEN Entertainment, along with then-parentSK Telecom,was one of the 15 companies fined and sued by theKorean FTCforprice rigging in 2011.The company was fined $9.6 million for its role in the scheme.[citation needed]

2016
On October 9, 2016, theSupreme Court of Koreahanded out a 100 million won fine each to LOEN Entertainment and its closest competitorGenie Music(then known as KT Music) for colluding in price fixing, dating back to a case filed in 2008. Co-CEO Shin Won-soo, who was the sole CEO at the time being, was also sentenced to pay 10 million won.[31]

Stealing royalties

[edit]

On September 26, 2019, it was revealed that 3 former executives of the company have been charged with stealing 18.2 billion won in royalties from Melon, artists, and producers.[32]

Incrediblepromotion conflict

[edit]

In 2013, LOEN Entertainment made a deal withC-JeS Entertainmentto promote and distributeJunsu's secondstudio albumIncredible.Days before the album's release, C-Jes was reportedly notified by LOEN that they would distribute the album but had scrapped plans for promotional marketing and broadcasting Junsu's upcoming showcase on MelOn, although they would be able to broadcast it onLOEN TV.Promotional banners regarding the album's release on MelOn also disappeared from LOEN's social media accounts. C-JeS subsequently threatened to remove mentions of LOEN from Junsu's upcoming showcase and to file for a civil appeal to theFair Trade Commissionand Anti-Corruption and Civil Rights Commission.[33]

In response, LOEN Entertainment stated that they were still in discussions regarding the album's promotion and that nothing had been confirmed prior to the relevant article's release. They pointed to the showcase event page on MelOn's homepage still being up as evidence that promotions were going ahead as planned. C-JeS responded saying that they had begun receiving pre-orders for the album and entries for the showcase event without a response from LOEN.[34][35]

Following media attention, the two companies met on July 8 and resolved the dispute.Incrediblewas promoted and distributed by LOEN as planned.[36]

Business

[edit]

Kakao M had three companies, a concept known as a "company in company" (CIC). The company also planned to set up another one in the future.[37][38]

Melon Company

[edit]
Further information:Melon (online music service)

Melon Company[39](Korean:멜론컴퍼니;RR:mellon keompeoni) was Kakao M'sonline music servicecompany, operatingMelon(short formelody on),[40][41]the most popular music service in Korea, with 59% of all users in South Korea as of November 2013.That yearSoompiranked MelOn as the third most influential entity in the K-pop industry.[42]

Music Content Company

[edit]
The logos of LOEN Music and 1theK

Music Content Company[43](Korean:음악컨텐츠컴퍼니;RR:eum-ak keontencheu keompeoni) was Kakao M's music content production company, which included the music content brand1theK(which was known as LOEN Music before February 2014), the ticket selling portalMelon Ticket[44]and distributed over 300 titles per year, working with independent agencies to invest in music production. The name '1theK' indicated its aim of creating one source for worldwide K-pop content.[45]

Multilabel

[edit]
Further information:List of Kakao M labels

Kakao M managed its artists within the companies under its Music Content Company, includingLOEN Tree(2012) andCollabodadi(2014). Collabodadi artists were moved to LOEN Tree in September 2015 and later LOEN Tree was renamed asFave Entertainmentin February 2017.

Kakao M acquired independent labelStarship Entertainmentin 2013 and Cube Entertainment subsidiaries labelA Cube Entertainment(which later was renamedPlan A Entertainment) in 2015, as well asKing Kong Entertainment(which was acquired by Starship in 2015).

In June 2016, Kakao M established an independent labelMun Hwa In.

In December 2017, Kakao M established a one-person agencyE&T Story Entertainmentfor actressKim So-hyun,which was led by her long-time manager Park Chan-woo.[46]As January 2018, Kakao M's independent label Plan A Entertainment has taken over the agency.

On June 27, 2018, Kakao M made strategic investments and created partnerships with three actor management agencies BH Entertainment, J.WIDE Company, Management SOOP, and Korea's leading advertisement model casting agency, Ready Entertainment in order to globalize its content.[47]

On January 13, 2019, Kakao M acquired independent labelBlossom Entertainment.[48]

On February 13, 2019, Kakao M released a statement thatPlan A EntertainmentandFave Entertainmentwill be merging intoPlay M Entertainmenton April 1.[49]

On January 6, 2020, Kakao M established a new label,EDAM Entertainment,to manage their long-time soloistIU.[50]

Video Content Company

[edit]

Video Content Company[51](Korean:영상콘텐츠컴퍼니;RR:yeongsang keontencheu keompeoni) was Kakao M's media production company, which includedKrispy Studio(a web content production company) andMega Monster(formerly Story Plant, adramaproduction company that Kakao M co-owned withCJ E&MsubsidiaryStudio Dragon Corporation).

Just almost a week after its name change, Kakao M (through Krispy Studio) acquired a majority (65.7%) stake inNylon Media Korea,publisher of theKorean editionof beauty and fashion magazineNylon,from Seoul Cultural Publishers.[52]

Others

[edit]

In April 2018, Kakao M andits parent companyformed theCSRventureKakao Impact Foundation.[53]

Subsidiaries

[edit]

As of 2021,the following companies were the subsidiaries of Kakao M:[54]

Locations

[edit]

Awards

[edit]
Name of the award ceremony, year presented, category, recipient of the award, and the result of the nomination
Award ceremony Year Category Recipient Result
DigitalThe Chosun IlboAwards 2011 Most Trusted Brand (Online Music Service) MelOn Won
App Awards Korea Best Entertainment Application Won
DigitalThe Chosun IlboAwards 2012 Most Trusted Brand (Online Music Service) Won
Korean Digital Business Innovation Awards Grand Prize (Digital Contents) LOEN Entertainment Won
Gaon Chart K-Pop Awards 2013 Music Distribution (Online)[62] Won

See also

[edit]

Notes

[edit]
  1. ^He is also theCEOof subsidiary Mega Monster
  2. ^formerly Krispy Studio
  3. ^Founded in 2014 by celebrity stylistHan Hye-yeon[ko]
  4. ^Formerly LOEN Tree, Fave Entertainment, Plan A Entertainment, Play M Entertainment and change to IST Entertainment after merging with Cre.ker Entertainment
  5. ^FormerlyStory Plant;was affiliated underCJ E&M
  6. ^formerly House of Music
  7. ^Main office,same with GRAYGO and EDAM Entertainment
  8. ^All subsidiaries under the Music Content Company excluding EDAM Entertainment and Flex M
  9. ^Flex M
  10. ^Mega Monster

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[edit]
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