South Korean TV series producing company Raemongraein Co. will use the proceeds from the Kosdaq initial public offering in December to bolster intellectual property rights as the riches in original scripts and others define the content power, according to its chief executives.

“Intellectual properties play a critical role in adding value to content business,” Kim Dong-rae and Park Ji-bok, co-CEOs of Raemongraein, said during their recent interview with Maeil Business Newspaper.

Raemongraein is a production company in Korea, famous for the 2010 TV series “Sungkyunkwan Scandal” starring Park Min-young, Park Yoo-chun, Yoo Ah-in and Song Joong-ki and the 2019 TV series “Extraordinary You” starring Kim Hye-yoon and Rawoon.

Raemongraein earns 89 percent of its revenue from content production and 10 percent from non-production business including the sale of content license, OST and goods. In 2020, Raemongraein delivered an operating profit of 3.7 billion won ($3.1 million) on revenue of 34.7 billion won.

Raemongraein, founded in 2007, is considered a pioneer among Korean content producers in generating income from IPs.

A majority of content producers in Korea hand over the IP rights of their creations to platform companies and lose additional revenue sources from non-production businesses, Kim noted. If producers pay some of the production costs, however, they can have part of the IP rights or all.

“Companies with a production capacity and strong network with platforms can have the negotiation power. Raemongraein as an industry pioneer secured the entire IP right for the “Sungkyunkwan Scandal” even in 2010,” Kim emphasized.

He also expects great synergy with Raemongraein’s partnership with Wysiwyg Studios, its largest stakeholder with 25 percent.

“Wysiwyg Studios has its own content value chain and strong capital positions. The overseas network of its parent Com2uS is expected to help us make inroads into overseas markets,” said Park.

Contents names have recently been warmly met by investors.

RBW Inc., the label behind K-pop star Mamamoo, last month opened its debut day at doubled from its IPO price closed the day at its daily ceiling.

Raemongraein is offering 1.2 million initial shares at a desired price band of 11,500-13,000 won ($10.94) to raise total 13.8-15.6 billion won. Book-building is due on Dec. 2-3, and retail offering is on Dec. 7-8. Lead underwriter is IBK Securities.

By Kang In-seon and Lee Ha-yeon

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]