Musicow Inc. Pushes 40 Billion Won Music IP Fund, Jump-Starts Early Growth of Fractional Investment OTC Exchange

[Sportschosun Baek Ji-eun] Musicow Inc. is opening a new chapter in cultural finance.

Musicow Invest, Musicow Inc.'s dedicated financial subsidiary, recently signed a memorandum of understanding with Shinhan Investment & Securities for the acquisition of music IP and a strategic partnership. Based on its expertise in music IP valuation and sourcing high-quality assets, Musicow Inc. will select commercially viable music IP targets, while Shinhan Investment & Securities will serve as the GP for the project fund. Together, they aim to establish a music IP fund and secure strong underlying assets that could determine the market's success, leading the early activation of the OTC exchange.

The two companies plan to form the first music IP fund worth about 40 billion won, secure high-quality music IP, issue it as a fractional investment product through Musicow Inc., and distribute it on the OTC trading platform. Their first goal is to complete the acquisition of music IP in the second half of the year and finish issuing the fractional investment products before the exchange opens.

If a circular structure is established, from music IP acquisition to the issuance and distribution of fractional investment products, followed by recovery and reinvestment, it could provide strong momentum for the early growth of the fractional investment and STO ecosystems. It would also make it possible to deliver productive cultural finance by injecting large-scale funding into the broader cultural industry, which has struggled to raise capital. The two companies plan to gradually expand their collaboration model with music producers, platforms, and copyright holders, while building a long-term roadmap for a continuation fund of more than 100 billion won, based on the performance of the first fund and a broader range of investment targets.

A Musicow Inc. official said, "We expect that combining Musicow Inc.'s strengths in music IP sourcing and valuation with Shinhan Investment & Securities' IB capabilities will create synergy for the early establishment of the fractional investment and STO ecosystems." The official added, "We believe this music IP acquisition project will serve as an opportunity to prove the positive role of music investment by supplying healthy capital to the cultural industry and energizing the creative ecosystem. We will provide investors with attractive, high-quality assets and inject vitality into capital circulation in the cultural sector to create a model of mutual growth in the new financial market."

Baek Ji-eun, Sportschosun, silk781220@sportschosun.com