Kakao Entertainment and Melon Music Company are joining forces in an effort to lead the growth of the entertainment industry.

In an announcement made on 15 July, the two Korean entertainment companies revealed their plans on a merger that is set to be finalised this September. This comes as part of Kakao Entertainment's plans to secure a leading role in Korea's competitive entertainment industry. 

Kakao Entertainment is a global entertainment company, known for producing and creating a variety of content like webtoons, TV shows, movies, and more. The company is responsible for hit K-dramas like What's Wrong With Secretary Kim?, Itaewon Class, The Uncanny Encounter, and more. 

While Melon Music owns Korea's largest music streaming platform that currently hosts 33 million users. The company also hosts one of the country's largest annual awards ceremonies, Melon Music Awards. 

As part of the merger, one share of Kakao entertainment is said to be exchanged for 7.8 shares of Melon Music. The music streaming platform is also said to be rebranded to Melon M and will be helmed by Lee Jae Wook, who was previously the CEO of Kakao subsidiary Kakao M. 

Through the merger, Kakao Entertainment is expected to KRW 2 trillion (USD 1.75 billion) in annual sales following the acquisition of Korea's largest music streaming platform. 

Kakao Entertainment plans to maximise Melon Music's business portfolio and continue to lead the entertainment and music industry, both domestically and internationally.