JYP Entertainment (JYPE), one of Korea's largest talenthouses founded and run by famed singer-producer Park Jin-young
, will become the largest shareholder of Asian pop sensation Rain
's entertainment firm J.Tune Entertainment next year.
J.Tune announced through a regulatory filing on Monday that they have decided to increase their capital by issuing about 6.37 million new stocks worth a total 8.5 billion won, equivalent to almost 7.4 million dollars, to 19 subjects including JYPE, Park and JYPE CEO Jung Wook on January 20.
When the new stocks are issued, JYPE will hold 18.54 percent, or over 4.07 million J.Tune shares to become its largest shareholder. Kim Yoon-chul, the current owner of J.Tune, holds a 3.06 percent stake in the company.
The news has been welcomed by J.Tune's investors and fans of the two parties -- J.Tune, whose stocks had been suffering since Rain
sold off all of his shares in the company on July 19 of this year, closed at 1,780 won on the junior KOSDAQ market, up 14.84 percent from its last trading day on December 24.
, whose real name is Jung Ji-hoon, had set up J.Tune in 2007 by investing 4.7 billion won in the agency to make him largest shareholder.
He had also left JYPE to make the move, arousing speculation that the two would be on bad terms since Park made Rain
the superstar he is today in the Asia region.
However, today's announcement confirmed the two's strong relationship, further backed by a separate press release by JYPE stating that Rain
had proposed Park manage J.Tune.
"Rain asked Park to become in charge of managing J.Tune since he wants to focus solely on his singing and acting career until he enters the military next year", JYPE explained.
"JYPE will provide its utmost support to Rain so that he may pursue his career more freely and actively", JYPE vowed in its statement.
Jessica Kim jesskim@