Kakao Entertainment business profile: K-pop, webtoons, and anime-adjacent IP
Kakao Entertainment's webtoon and IP operations touch anime, but its public disclosures group them under much larger content segments.
Published: 2026-08-19. Updated: 2026-08-19.
Short answer: Kakao Entertainment Corp. is a South Korean entertainment company majority-owned by Kakao Corp. Its business spans music, story, and media divisions. For 2024, it reported sales of KRW 1.81 trillion and operating profit of KRW 80.6 billion, a 16.5% operating profit increase despite a 3.2% sales decline. Kakao Entertainment holds webtoon and web novel IP that is adapted into anime, drama, and film, but it does not report a separate anime segment. Its major shareholders are Kakao Corp. at 66.03%, Anchor Equity at 12%, and GIC, PIF, and Tencent as minority investors.
What Kakao Entertainment is and who owns it
Kakao Entertainment Corp. is a subsidiary of Kakao Corp., the South Korean technology company behind the KakaoTalk messaging platform. Kakao Corp. holds a 66.03% stake in Kakao Entertainment. Other shareholders include Anchor Equity Partners at 12%, a special-purpose company set up by Anchor and Singapore's GIC at 6.73%, Saudi Arabia's Public Investment Fund at 5.1%, and Tencent at 4.5%.
The company was formed from Kakao's content assets and has grown through acquisitions, including a majority stake in SM Entertainment and the 2021 acquisitions of U.S. storytelling platforms Tapas Media and Radish Media. It operates music labels, the Kakao Webtoon platform, film and drama production studios, and artist management.
How Kakao Entertainment is organized
Kakao Entertainment reorganized into three divisions after merging with Melon, Korea's leading music streaming platform. The Story division covers webtoons and web novels. The Music division covers record labels, artist management, and the Melon streaming service. The Media division covers film, drama, and variety production.
The company says its strategy is to strengthen the competitiveness of each business area and produce global IP. Anime enters the picture mainly through the Story division: Kakao Webtoon and Tapas titles are adapted into animated series, and the company licenses IP for cross-media development.
Revenue and profit
For 2024, Kakao Entertainment reported sales of KRW 1.81 trillion, down 3.2% from the previous year, and operating profit of KRW 80.6 billion, up 16.5%. The profit improvement came from shedding loss-making units and reducing costs, even as total sales declined.
The company has been divesting unprofitable music labels and digital content platforms. By the end of 2024, its net borrowings had halved to KRW 347.0 billion. Kakao Entertainment has also explored a sale of a majority stake or an IPO, but those plans have been on hold amid market conditions and debt from its acquisition spree.
Kakao Entertainment 2024 financial highlights. Source: Korea Economic Daily.| Metric | 2024 result | Year-on-year change |
|---|
| Sales | KRW 1.81 trillion | down 3.2% |
| Operating profit | KRW 80.6 billion | up 16.5% |
| Net borrowings | KRW 347.0 billion | halved from prior year |
Anime and webtoon-to-animation strategy
Kakao Entertainment does not break out anime revenue. Its anime-adjacent activity sits inside the Story division, where webtoon and web novel IP are developed for animation, drama, and film adaptations. Titles linked to Kakao Entertainment include Solo Leveling, which originated on the company's platforms before becoming a major anime production.
The company's Tapas platform in North America and Kakao Webtoon in Korea and other Asian markets serve as IP incubators. Kakao Entertainment has said it aims to generate more than 30% of total revenue from overseas, which would rely partly on exporting webtoon-based animation and live-action adaptations.
What public disclosures do not show
There is no publicly available segment called 'anime' in Kakao Entertainment's financial statements. Revenue from IP adaptations is grouped with the broader Story or Media divisions, and any animation-specific income is not separated from drama, film, or publishing revenue.
Investors and analysts therefore estimate Kakao Entertainment's exposure to anime indirectly, through webtoon IP pipelines, announced adaptations, and platform performance. The company's direct financial contribution from anime remains undisclosed.
Anime segment not reported: Kakao Entertainment reports music, story, and media divisions, but it does not disclose a separate anime segment. This article reports only the consolidated figures the company has made public.
Frequently asked questions
Who owns Kakao Entertainment?
Kakao Corp. owns 66.03% of Kakao Entertainment. Other shareholders include Anchor Equity, GIC, Saudi Arabia's PIF, and Tencent.
What are Kakao Entertainment's main businesses?
Music, Story, and Media. Music includes labels and Melon. Story includes webtoons and web novels. Media includes film, drama, and variety production.
How profitable is Kakao Entertainment?
In 2024, Kakao Entertainment reported operating profit of KRW 80.6 billion on sales of KRW 1.81 trillion.
Does Kakao Entertainment report anime revenue?
No. Anime-related activity is part of the Story and Media divisions and is not broken out separately.
Sources and methodology
- Kakao Entertainment scraps IPO, seeks new buyer, Korea Economic Daily. 2024 sales of KRW 1.81 trillion, operating profit of KRW 80.6 billion, ownership structure, and shareholder list.
- K-Pop and media giant Kakao Entertainment secures $966m investment from sovereign wealth funds, Music Business Worldwide. Description of Story, Music, and Media divisions and the company's content IP strategy.
- Kakao Entertainment Accelerates Inroads Into Global Music Markets in Second Half of 2024, Kakao Entertainment. Company statement on global IP production, multi-label system, and overseas expansion.