JYP to start platform business with Dunamu

JYP Entertainment's corporate logo / Courtesy of JYP Entertainment

By Kim Jae-heun

JYP Entertainment, the agency for big K-pop acts like TWICE, DAY6 and ITZY, is advancing into the platform business utilizing non-fungible tokens (NFT).

The entertainment company said Thursday it has established a strategic alliance with Dunamu, operator of the global cryptocurrency exchange Upbit, to produce digital goods related to K-pop idols and provide additional services including retailing and trading online.

“We plan to combine original content involving our K-pop artists with Dunamu's blockchain-based technology and its global network to create new added value and synergy for our NFT platform business,” a JYP official said.

Dunamu invested in JYP Entertainment by acquiring its old stocks and the two firms agreed to create a joint venture. JYP will provide intellectual properties related to its musicians for the joint business.

In last month, the entertainment firm has spent 21.3 billion won on taking over a 23.3 percent of share of DearU, SM Entertainment's affiliate that operates a fandom-based platform “bubble.” The company expects its K-pop stars to communicate with their fans more often on the channel while developing a future-oriented entertainment business.

JYP Entertainment is taking the same path as Hybe and SM Entertainment, which have already started their own platform businesses in an effort to diversify profit channels.

Lee Hyo-jin, a researcher at Meritz Securities, said there is no doubt for the need for entertainment firms to utilize NFT, which allows them to confirm their possession over the contents of digital assets.

“However, an instant contribution to the rise of the company's stock price cannot be expected and it is a long-term project. JYP Entertainment won't experience the same benefit it enjoyed when it acquired its DearU stake,” Lee said.