Korean webtoon maker YLAB aims to go public, become IP specialist

YLAB Chief Executive Officer Shim Joon Kyung announces at the press conference in Seoul on July 3. [Photo by Yonhap]

Korean webtoon production company YLAB Corp. is accelerating its footsteps to expand its business areas to intellectual property (IP) from content production by going public.

“As a studio production company with strength in webtoon and drama production and IP, we will build a business model where IP royalties and license revenues exceed content revenues,” said YLAB Chief Executive Officer Shim Joon Kyung on Monday during the press conference that took place ahead of the company’s initial public offering.

Founded by famous cartoonist Yoon In-wan in 2010, YLAB started as a webtoon production company and has grown into a comprehensive content production company over the past decade by developing capabilities in TV series and movie production and potentials in IP. Unlike most webtoon companies that operate on an agency-based structure, YLAB follows a studio production company model, vertically integrating the webtoon-related value chain.

It has global content companies such as Naver Webtoon Ltd. and CJ ENM Co. as strategic collaboration partners. Naver Webtoon is also the second-largest shareholder, holding a 12.02 percent stake in the company, while CJ ENM holds a 12.01 percent stake as the third-largest shareholder. The founder and producer, Yoon In-wan, holds the largest stake in the company at 22.13 percent.

The company generated 29.8 billion won ($22.8 million) in sales revenue last year. With an average annual sales growth rate of 135.5 percent between 2020 and 2022, the company is seeking a special listing with growth potential.

YLAB’s desired IPO price is set in the 7,000 to 8,000 won range. Based on the desired price, the company’s market capitalization after listing is estimated to be between 110.8 billion won and 126.7 billion won. Bookbuilding to forecast institutional investors’ interest will be held for two days from Monday and receive subscription for two days on July 10 and 11. The listing will be managed by Korea Investment & Securities Co.