'Parasite' and 'Spring in Seoul' Investor with the 'Midas Touch'... Now Taking Over the Living Room

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'Extreme Job', 'Parasite', 'Spring in Seoul', 'Exhuma'

These box office hits share one commonality: they were all invested in by venture capital firm Solare Partners. In particular, 'Extreme Job,' which drew 16 million viewers, generated a record-breaking return of over 300%, while 'Spring in Seoul' also achieved profits exceeding 100%.

The figure leading this glamorous portfolio investment is Lee Young-jae, CEO of Solare Partners. A former KT executive, he previously served as the head of film investment and finance (CFO) at Psy the S FNH, a major domestic film production and distribution company. He possesses deep insight into both the physiology of the telecommunications industry and the capital flows of the film industry.

Lee (CEO) cites the scenario as the first principle of film investment. He stated, "While actors and directors are important, the scenario takes top priority." He added, "If the scenario is good, we take the lead in packaging work that directly connects producers, distributors, and actors."

Solare Partners' pioneering approach stems from an intense internal screening system. Reviewers, including Lee (CEO), each examine scenarios individually, selecting only those deemed promising to discuss investment decisions. 'Spring in Seoul,' a film that had faced difficulties due to rejections by distributors, was also discovered through this process.

Film fund operations are broadly divided into main investments and partial investments. Solare Partners runs 3 to 4 main investments and 5 to 6 partial investments annually to maintain portfolio balance. Partial investment involves funding already-set projects and sharing profits under the leadership of a distributor.

In contrast, main investors assume the role of a 'control tower,' taking responsibility for funding and coordinating all issues with stakeholders. They become deeply involved in overall planning and production beyond mere capital execution. From the scenario development stage, they exchange multiple rounds of revision feedback to enhance quality, while also meticulously overseeing on-site filming checks and reviewing edited versions.

Lee (CEO) explained, "Main investment is structured to take responsibility for all processes, from marketing to verifying settlement statements." He added, "We go beyond being mere financial investors (FI) chasing profits; we act as partners who create works together."

Commercial success is not the only criterion; the social impact of films is also a key investment standard. Representative examples include 'The World's Master,' an independent film that surpassed 200,000 viewers, 'Next Sohee,' selected as the closing film of the Critics' Week at the Cannes Film Festival, and 'Man and Fish,' which addresses elderly poverty issues. Lee (CEO) stated, "Films are media that convey social messages beyond being a means to make money." He added, "If a work can generate meaningful impact, we make bold investment decisions."

Solare Partners manages a 40 billion won 'IPTV Strategic Fund,' jointly funded by three IPTV providers: KT, SK Broadband, and LG Uplus. Since the COVID-19 pandemic, the structure has shifted where theatrical films are released directly on OTT (online video services) or are produced exclusively for OTT from the start. In this process, IPTV revenues plummeted sharply.

Lee (CEO) stated, "This fund is not just about producing and investing in films; it serves as a litmus test to re-strategize the distribution channels of the collapsed media ecosystem." The core strategy of the fund is the normalization of 'Holdback.' Holdback refers to the grace period between theatrical release and the transition to subsequent media platforms like IPTV.

Lee (CEO) explained, "In the past, we maximized revenue at each distribution stage by generating sales in theaters first, then creating a blackout (a period where content is not exposed) to build audience anticipation before releasing it on IPTV." He continued, "However, since the pandemic, films have moved directly to OTT, breaking this formula. This has not only damaged IPTV revenues but also caused a concurrent decline in theatrical earnings."

Solare Partners plans to strategically adjust the holdback periods for works where they serve as main investors. Lee (CEO) stated, "We will invest primarily in genres preferred by IPTV users, such as action and thrillers, to select competitive works tailored for IPTV." He added, "Since the three private IPTV companies are participating as anchor investors, we expect to be free from constraints and focus thoroughly on commercial success and strategic goals."

Among the highly anticipated releases this year is director Kim Han-min's 'Sword of Gudu-mak.' Starring Park Bo-gum in the lead role, this work transcends traditional historical dramas, belonging to the historical action genre reminiscent of 'Gladiator.' Lee (CEO) introduced it as a "global project targeting not just the Korean market but all of Asia."

Furthermore, to overcome the limitations of the narrow domestic market, Solare Partners is also preparing for global co-productions, such as planning a horror thriller with renowned Thai director Banjong Pisanthanakun.

[MoneyToday Startup Media Platform Unicorn Factory]