DRX attracts USD 10M investment

On the 16th of July, DRX (CEO, Choi Sang-in) announced that it has attracted a large scale USD 10M investment.

The investment is participated by JS Corporation (KRX: 194370), a KOSPI-listed global exporter of luxury handbags, as well as companies with solid financial stability such as Seoul Investment Partners, Quantum Venture Korea, Shinhan Capital, Wonik Investment Partners, and Devsisters Ventures. Rather than a conditional investment commitment to the selection of franchises, the investment and payment were executed in advance, believing in the growth potential of DRX.

The companies that participated in the investment have decided to invest due to DRX’s strong global fandom, the systematic big-data based player discovery system, and its potential for unrivaled growth. In particular, the fact that the company is building and strengthening its own business model before the launch of the franchise seems to have also played a significant role.

With this investment, DRX is fully prepared financially for the launch of Legends Champions Korea (LCK) franchises. This will make DRX as one of the LCK teams with most cashable assets. The investment will be used in various fields such as improving infrastructure and welfare facilities for players, creating global content and marketing.

It is also notable that Bae Yong-joon, aka “Yonsama” who won the Korean Hwa-Gwan Order of Culture Merit in recognition of his contribution to the spread of the Korean Wave, joined as a DRX shareholder. Bae Yong-joon is a celebrity from the early stage of the Korean Wave celebrity boom, and he will serve as an advisor to DRX’s strategy to strengthen its global branding.

In addition to this investment of USD 10M, DRX announced that ATU Partners and its parent company Kibo Steel will invest an additional USD 12.5M in the future. ATU Partners is a general partner (GP) who exclusively oversees investment and operation of private equity funds, ATU eSports Growth Fund No.1, the largest shareholder of DRX.

Kibo Steel is a family company of DRX’s Chairman and ATU Partners CEO Park Jung-moo, and is a steel manufacturing and distribution company that celebrates its 21st anniversary. As of the end of last year, the company has solid financial stability of USD 420M in revenue and USD 182M in total assets, and is a prestigious company that won the Presidential Award and the National Tax Service Commissioner Award.

With this massive investment attraction, the financial soundness of DRX has become even more robust as ATU Partners and Kibo Steel have pledged to continue to invest. DRX is realizing its specific plans to become a ‘top global esports company’ with a healthy business structure and super-fandom brand.

DRX’s CEO Choi Sang-in said, “I sincerely thank all the investors. They believed in DRX’s value and its growth potential and executed investment and payment in advance before the franchise is finalized. I hope this investment will help not only DRX but also the entire LCK to continue its significant growth.”