[Aju News DB]
South Korea's web service provider Kakao will issue global depository receipts in Singapore to secure a fund of up to one billion US dollars for investments in technology-related businesses or for the acquisition of contents platforms.
Kakao said in a statement on Friday that the GDR plan has been endorsed by its board. "We made this decision to prepare for competition with global ICT companies and secure future growth engines."
GDR is a bank certificate issued in more than one country for shares in a foreign company. GDRs enable a company to access investors in capital markets outside of its home country.
Kakao, which runs South Korea's leading messaging app operator, has posted brisk sales in its contents business including mobile games and music since it acquired Melon, a leading music streaming label of Loen Entertainment, last year.
In an effort to diversify its portfolio, the group has spun off mobile content, payment service, and artificial intelligence businesses as subsidiaries.
reporter
Lim Chang-won
cwlim34@ajunews.com
