This article was published on Jan. 12, 2026, at 3:54 p.m. on the ChosunBiz MoneyMove site.
Game company Krafton is planning a 100 billion won investment in entertainment agency The Black Label.
On the 12th, according to the investment banking (IB) industry, Krafton is negotiating to acquire 100 billion won of newly issued shares by The Black Label. The Black Label's corporate value is estimated to exceed 800 billion won.
The Black Label was founded in 2016 by director Park Hong-jun (Teddy), formerly of hip-hop group One Time and once regarded as a lead producer at YG Entertainment. It initially served as an outsourced record production company for YG Entertainment, but in 2020 expanded into planning its own records.
Of the 100 billion won, 50 billion won may be covered by overseas strategic investors (SIs). A source in the IB industry said, "I understand negotiations have continued with overseas SIs until recently," and added, "If those negotiations ultimately fail, Krafton will invest the entire 100 billion won."
The investment is reported to have been made possible by the ties to game companies of The Black Label CEO Jeong Kyung-in, a former Pearl Abyss executive, and The Black Label chief financial officer (CFO) Jo Seok-woo. The two served respectively as CEO and CFO of Pearl Abyss and led Pearl Abyss's listing on KOSDAQ.
The Black Label proved its record production capabilities by releasing hit songs such as "Apartment" and "Golden." The five-member mixed group ALLDAY PROJECT (ADP) proved its artist development ability by settling into a successful trajectory within six months of debut.
Another source in the IB industry said, "Game companies and entertainment companies have similar business structures because a company's fate can hinge on whether a single intellectual property (IP) succeeds or fails," and added, "Krafton is likely to seek synergies with The Black Label in various areas."