Krafton invests $89 million in Spoon Labs, expanding into the short-form video market

Krafton has announced an investment of KRW 120 billion (approximately $89 million) in Spoon Labs, a rising player in the short-form video space. This marks KRAFTON’s largest move to date outside of gaming as it seeks to diversify its portfolio and tap into the rapidly growing market for short-form dramatic content.

Spoon Labs, led by CEO Hyukjae Choi, first gained recognition for its global audio platform, Spoon, which has built a strong user base across multiple regions. Building on that success, the company has ventured into the short-form video segment with its new platform, Vigloo, which focuses on hosting short dramatic videos. The platform offers curated content based on regional preferences and supports seven languages, including Korean, English, Japanese, and Spanish, making it well-positioned to cater to a global audience.

Krafton’s decision to invest in Spoon Labs stems from the growing demand for short-form video content, particularly in regions like the U.S., Japan, and China, where the market is valued at KRW 7 trillion. With Vigloo, Krafton sees a unique opportunity to leverage Spoon Labs’ stable platform technology and expand into the international short-form drama space. The company also views the platform as a potential source of valuable intellectual property (IP), which could create synergies with its existing content businesses.

The short-form drama market has been experiencing rapid growth, and Krafton is betting that Vigloo can capture a significant share of this emerging segment. By combining Spoon Labs’ expertise in content curation and Krafton’s resources, the two companies aim to establish a dominant presence in the global market. Krafton CEO CH Kim noted, “Spoon Labs has already demonstrated its capability in global markets with Spoon, and we believe Vigloo has the potential to revolutionize short-form video drama, extending the reach of Korean content even further.”

Spoon Labs has ambitious plans to expand its video platform into new regions, with a particular focus on the U.S. and Japan. The company has already collaborated with production houses to release 60 exclusive pieces of content on Vigloo, with plans to release a total of 120 by year-end. The upcoming launch of original Japanese content signals the company’s aggressive marketing efforts, which will be ramped up in both the U.S. and Japanese markets.

CEO Hyukjae Choi of Spoon Labs expressed enthusiasm about the collaboration, stating, “Our goal is to create a new global standard for short-form drama, and with Krafton’s support, we are well on our way to doing that. We are confident that our expansion into video content will build on our success with Spoon and set the stage for future growth.”