By Kang Yoon-seung

SEOUL, April 26 (Yonhap) — South Korea’s antitrust regulator stated Wednesday it has launched a assessment on South Korean tech big Kakao’s acquisition of a stake in SM Entertainment, the Ok-pop company behind EXO, Aespa, and NCT.

The transfer by the Fair Trade Commission got here a month after Kakao and Kakao Entertainment acquired a combined 39.87 percent stake in SM Entertainment.

“As the merger is expected to give a significant impact on the entertainment industry down the road, including the K-pop sector, we plan to thoroughly examine the deal under the standards and procedures stipulated in the law,” the FTC stated.

Kakao is a number one IT agency that operates KakaoSpeak, the highest cellular messenger app right here, in addition to No. 2 on-line portal Daum. The firm additionally has music streaming providers in addition to a webtoon platform below its wing.

The FTC described the deal as “a merger between a general content company and a K-pop firm,” noting that their companies overlap one another.

The reviewing course of is anticipated to take 30 days, though it may be prolonged as much as 90 days, if essential.