This article was published on July 21, 2025, at 2:53 p.m. on the ChosunBiz MoneyMove site.
The domestic private equity fund (PEF) management company Cheongdam Investment and the KNT Investment consortium have abandoned their acquisition of the entertainment agency KeyEast, bringing the sale back to square one. The deal fell through after the main strategic investor (SI), Asia Holdings Company, withdrew its investment.
According to investment banking (IB) sources on the 21st, the consortium recently pushed for funding to acquire KeyEast but eventually gave up. The transaction involved a 33.71% equity stake in KeyEast held by SM Entertainment's subsidiary SM Studios. The anticipated acquisition price was around 5,000 won per share, with an expected sale price of 37 billion won. The sale was managed by the accounting firm Deloitte Anjin.
Park Geun-beom, chairman of Asia Holdings Company, considered investing directly in the project fund to be established by its subsidiary Cheongdam Investment or through Asia Holdings Company, but suddenly withdrew the plan. This is interpreted as having felt pressured after the news of the acquisition surfaced, shedding light on the connection with the former largest shareholder of Cheongdam Investment.
The predecessor of Cheongdam Investment, which emerged as the acquirer, is Cheongok Snake Investment. Cheongok Company changed its name to its current title after transferring all its equity to Asia Holdings Company in 2023. Currently, the listed company Neo Cremar (60%) and BBC (40%), subsidiaries of Asia Holdings Company, share the equity.
Amid this, there are observations that KeyEast's performance has dramatically declined, causing the sale to be somewhat delayed. A new candidate is currently reviewing the acquisition. KeyEast reported an operating loss of 1 billion won for the first quarter on a consolidated basis, a transition to a deficit, while sales during the same period decreased by 82% to 4.5 billion won. The net loss for the period was also recorded at 500 million won.
KeyEast, a KOSDAQ listed company, is engaged in management and the production of video content, including dramas. Actors Kim Hee-ae, Cha Seung-won, Lee Joo-bin, and Han Sun-hwa are affiliated with the company. It has also produced dramas such as "Voice," "Health Teacher Ahn Eun-young," and "Dream High."