ID :
197236
Tue, 07/26/2011 - 11:02
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https://oananews.org//node/197236
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Eximbank funds S. Korean cinema chain's takeover in Vietnam
SEOUL, July 26 (Yonhap) -- The state-run Export-Import Bank of Korea (Eximbank) said Tuesday it has provided a US$58 million loan to top local cinema chain CJ CGV to acquire Vietnam's leading industry player.
The loan to CJ CGV, a subsidiary of South Korean food and entertainment conglomerate CJ Group, will be used for the company's takeover of Megastar Media Co., Eximbank said, adding the amount marks its biggest financing for the culture and entertainment sector.
CJ CGV said it has decided to tap into Vietnam for its high percentage of young people and strong economic growth and will capitalize on lessons from operating multiplex cinemas in China. The company currently has three large movie theaters in the world's most populous country.
Eximbank's extension of the loan comes as the popularity of Korean pop culture in Southeast Asia, dubbed the Korean wave, has become a fresh growth engine for the domestic entertainment industry.
"The loan represents a successful example of combining Eximbank's financing knowhow with CJ CGV's overseas push," a bank official said. "We will spare no efforts to support the establishment of related infrastructure so that the Korean wave can bear economic fruit."
Since 2009, the state trade lender has been active in lending money to companies engaging in cultural content business, with its cumulative loans reaching 206.1 billion won ($195 million) as of this month.
The loan to CJ CGV, a subsidiary of South Korean food and entertainment conglomerate CJ Group, will be used for the company's takeover of Megastar Media Co., Eximbank said, adding the amount marks its biggest financing for the culture and entertainment sector.
CJ CGV said it has decided to tap into Vietnam for its high percentage of young people and strong economic growth and will capitalize on lessons from operating multiplex cinemas in China. The company currently has three large movie theaters in the world's most populous country.
Eximbank's extension of the loan comes as the popularity of Korean pop culture in Southeast Asia, dubbed the Korean wave, has become a fresh growth engine for the domestic entertainment industry.
"The loan represents a successful example of combining Eximbank's financing knowhow with CJ CGV's overseas push," a bank official said. "We will spare no efforts to support the establishment of related infrastructure so that the Korean wave can bear economic fruit."
Since 2009, the state trade lender has been active in lending money to companies engaging in cultural content business, with its cumulative loans reaching 206.1 billion won ($195 million) as of this month.
