[Click e-Stock] "THE E&M Kicks Off 1.8 Trillion Won Cheongna Audiovisual Culture Complex Development"

THE E&M is moving ahead in earnest with the Cheongna Audiovisual Culture Complex development project, which has a total project cost of 1.8 trillion won. Analysts say the approval of the revised development plan as originally proposed has substantially eased concerns about prolonged delays. Development gains from property sales and long-term operating revenue from production facilities are cited as key future growth drivers.

THE E&M is a media platform company engaged in internet and entertainment businesses. In March 2023, it was selected as the final preferred bidder for the Cheongna Audiovisual Culture Complex (SOM) development project, beating a large consortium that included KT and CJ ENM. It received the highest score in the project evaluation for its expertise in the audiovisual industry and its vision for a cluster linking production, post-production and cultural facilities.

As of the first half of 2026, internet accounted for 27.3% of revenue, entertainment for 9.4% and other businesses for 63.2%. Revenue in the first half totaled 13.5 billion won, while the operating loss was 6.2 billion won.

Ji Hu, a researcher at ValueFinder, said, "On October 19, the Ministry of Trade, Industry and Energy's Free Economic Zone Committee approved the revised development plan for Cheongna International City as originally proposed, laying the administrative groundwork for the project." Ji added, "With concerns about delays that had persisted for about four years since the 2022 project bidding substantially eased, approval and construction procedures are expected to pick up speed."

The project execution framework is also taking shape. Hyundai Engineering & Construction and Kumho Engineering & Construction will handle construction, while global studio operator Shadowbox Studios will manage operations. Korea Investment & Securities will design the financial structure and arrange financing.

The total project cost is 1.7894 trillion won, to be covered by 100 billion won in equity from the project financing vehicle (PFV), approximately 776.9 billion won in loans from financial institutions, and proceeds from property sales, among other sources.

Researcher Ji said, "The 1,416 officetel units, which will be built by Hyundai Engineering & Construction under a responsibility-completion guarantee and carry the HILLSTATE brand, are designed primarily as medium-to-large units. They are expected to attract pent-up demand amid restrictions on new housing supply in Cheongna."

THE E&M holds a 30.1% stake in the PFV and has committed to operating the production facilities for 10 years. As the project moves forward in earnest, the company is expected to secure not only development gains from property sales but also long-term revenue from operating the production facilities.

Researcher Ji emphasized, "As the company holds a 30.1% stake in the PFV and has committed to operating the production facilities for 10 years, generating long-term operating revenue alongside development gains will be a key growth driver."

This content was produced with the assistance of AI translation services.