Company says spin-off will allow each business unit to strengthen its expertise, operate more independently
Image via Manhwa Family’s website
© Manhwa Family
CJ ENM, one of the biggest entertainment conglomerates in Korea, is moving to spin off its webtoon production label Manhwa Family into a separate entity, as part of a broader strategy to focus on its core live-action content business.
According to a regulatory filing on April 21, CJ ENM Studios, one of the production arms of CJ ENM, will carry out a physical split of its webtoon production and comics publishing division to establish a new subsidiary, tentatively named Manhwagajok. The proposal was put to a shareholder vote on April 30, with the split scheduled to take effect on June 2.
CJ ENM initially invested 29 billion Korean won (approximately US$20 million by current conversion) in Manhwa Family in 2021 before fully acquiring the company in 2022 and integrating it into CJ ENM Studios alongside seven other production labels. The studio had aimed to build a multi-label production system, but the decision to separate Manhwa Family comes roughly four years after the integration.
Unlike the remaining labels under CJ ENM Studios — such as Bon Factory, Vlad, Yong Film, JK Film, Mmakers, Moho Film, and Egg Is Coming that focus on film, drama, and variety content — Manhwa Family specializes in webtoons and animation. The company said the spin-off will allow each business unit to strengthen its expertise and operate more independently.
“CJ ENM Studios is concentrating on its core capabilities in live-action content production,” a company official said, adding that the separation would enable Manhwa Family to pursue its own specialized business strategies with greater autonomy.
However, according to Korean financial media outlet The Bell, the industry observers suggest the move could also be a precursor to a potential sale. A physical split structure allows the parent company to attract external investment or divest shares more easily without diluting ownership.
The speculation is further fueled by CJ ENM’s recent participation in the acquisition bid for local streaming platform Watcha, as the company appears to be reshaping its portfolio around video-focused assets while potentially divesting non-core businesses.
Analysts say the restructuring could help CJ ENM Studios sharpen its focus on film and series production, while also improving financial flexibility through the possible monetization of its webtoon business.
Source: YNA (Ji-min Seo)
