BTS Partners with CJ to Launch Entertainment Firm
Hyo Jin Lee, Aug. 1, 2018, 8:02 a.m.
K-pop boy band BTS' management agency, Big Hit Entertainment, is teaming up with an affiliate of the entertainment and retail conglomerate CJ Group to launch an entertainment venture, industry sources said Tuesday.
Bit Hit and CJ E&M, an entertainment and shopping company under CJ Group, have recently submitted their plan to set up a joint company to the Fair Trade Commission, according to the sources.
Under the plan, CJ E&M and Big Hit will respectively hold 52 percent and 48 percent shares of the company. It will have a starting capital of 7 billion won (US$6.3 million) and is tentatively named Belief.
Following approval from the government commission and further discussion between the two firms, the new venture is likely to set sail in the near future.
CJ E&M is at the forefront of the local entertainment content production industry, having produced two of the most famous local talent recruit reality shows -- "Superstar K" and "Produce 101".
The new venture is intended to combine CJ E&M's expertise in the entertainment industry and its global networks with Big Hit's producing systems in order to develop new artists.
The joint company is reportedly planning a global auditioning program with a view to nurturing artists from around the world.
The deal is also likely to propel the growth of Big Hit, a relatively small player in the K-pop industry dominated by the big three companies -- SM, YG and JYP Entertainment.
"Both companies have agreed on the establishment of a new joint venture," a CJ E&M official said, confirming the decision. Another official at Big Hit also verified it: "(The two) have been in fact discussing the joint company, but there still are many processes to be overcome."