CJ ENM STUDIOS Spins Off Webtoon Division... Establishes New Entity 'Manhwa Family'

CJ ENM's content production corporation, CJ ENM STUDIOS, is spinning off its webtoon and comic business division to establish a separate new entity.

CJ ENM STUDIOS announced through a public disclosure on the 20th that it has decided to physically spin off its webtoon production and comic publishing business division to establish a new corporation named 'Manhwa Family Co., Ltd. (tentative).' This split will be conducted as a simple physical spin-off, where the spin-off company receives the total number of issued shares of the newly established company. Following the split, CJ ENM STUDIOS will remain as the surviving corporation, and the new entity, Manhwa Family Co., Ltd., will become an unlisted corporation.

The company explained that the purpose of this spin-off is to enhance management efficiency and improve corporate value through the specialization of each business division. This is interpreted as a strategy to respond agilely to the rapidly changing webtoon market by building an independent decision-making system. After the spin-off, the surviving company, CJ ENM STUDIOS, will maintain a capital size of approximately 11.75 billion won and focus on its existing video content production business, such as broadcasting and movies. The newly established Manhwa Family Co., Ltd. will launch with a capital of 50 million won and will be exclusively responsible for webtoon production, the comic business, and the development and supply of digital content.

Regarding the main schedule, the spin-off is expected to be completed on June 2 after receiving approval at the general shareholders' meeting on April 30. The period for creditors to submit objections has been set from May 1 to June 1. As this case is a simple physical spin-off of an unlisted company, appraisal rights for shareholders will not be granted. Additionally, the name of the newly established company may be changed during future processes such as the inaugural meeting.

The content industry expects that through this spin-off, CJ ENM STUDIOS will further strengthen its professional capabilities in the webtoon business as an original IP source, and maximize synergy with its video production business.