Dawoo Kiwoom Group has been selected as the preferred bidder to acquire Munhakdongne, South Korea's largest trade book publisher. The group, recently named preferred bidder for the JoongAng Ilbo newspaper as well, would reshape the country's media and publishing landscape if it also takes over one of Korea's best-known literary houses.
Founder Kang Tae-hyung, whose legal name is Kang Byung-sun and who is Munhakdongne's largest shareholder, recently informed about 100 employees that Dawoo Kiwoom Group had been chosen as the preferred bidder, according to publishing industry sources on the 24th. Kang said he looked for a buyer that "respects the traditional publishing work Munhakdongne has done so far, has the intellectual property capabilities to expand the scope of literary publishing, and respects and guarantees the rights of writers and employees," sources said.
Four companies submitted letters of intent, and Munhakdongne shareholders have agreed to sell a 100% stake, according to sources. The publisher's audit report shows Kang holds 41.5%, other shareholders 51.8% and treasury stock 6.7%. The shares outside Kang's holding are spread among multiple investors, including editorial board members from the company's founding. The sale price is estimated in the tens of billions of won, and completing the deal is expected to take several months.
Founded in 1993, Munhakdongne is a leading literary publisher whose list includes Nobel laureate Han Kang and other major Korean writers. It posted revenue of 36.9 billion won and operating profit of 7.1 billion won last year.
Dawoo Kiwoom Group's affiliates include the webtoon and web novel platform companies Kidari Studio and Lezhin Entertainment. If the Munhakdongne acquisition closes, the group is expected to expand its business by combining literary IP with its existing webtoon and web novel content operations. Dawoo Kiwoom Group is also pursuing the acquisition of the JoongAng Ilbo through a consortium with CJ Group and Shinsegae.