Naver's metaverse operator Naver Z's $190mn funding joined by K-pop labels

[Image courtesy of Naver Z]

Naver’s metaverse platform Zepeto operator Naver Z has bagged 223.5 billion won ($189.7 million) funding from financial investors and South Korean entertainment labels amid hype over metaverse economy.

The company raised 175 billion won, 80 percent of the total funding, from SoftBank, according to the sources from the investment banking industry on Wednesday. Mirae Asset Group, in charge of operating Naver’s overseas venture funds, chipped in 20 billion won.

The rest of the fund was raised by the country’s major K-pop agencies. Hybe behind BTS bought 903 shares of Naver Z which are priced at 7.8 million won apiece, and YG Entertainment and JYP Entertainment took over 909 shares each. Naver Webtoon also acquired 909 shares.

3D avatars of Blackpink [Image courtesy of Naver Z]

“SoftBank’s participation is largely expected because it is in partnership with Naver under Z Holdings, but what’s noticeable is the joining of Korean K-pop labels,” said an official from the industry. “Intellectual properties of famous K-pop stars such as BTS and BlackPink may join the platform.”

Some market analysts, however, said the fundraising was half-successful as it failed to draw foreign strategic investors beyond SoftBank despite the company’s wishes.

Still experts agree the company has a huge growth potential in the global stage as it has secured about 250 million users for its metaverse platform Zepeto of which 90 percent of them is from foreign countries. They believe it will soon unveil strategies to broaden its presence in North America and Europe.

[ㄏ Maeil Business Newspaper & mk.co.kr, All rights reserved]