Mattel expands presence in South Korea
Strengthening its presence in key geographies throughout Asia, Mattel announced that it has finalized strategic relationships with Choirock Contents Factory, Co., Ltd. and Sonokong Co, Ltd., two of Korea's most successful and established toy industry leaders. Under the terms of an agreement with Choirock, Mattel will serve as master toy licensee for the hugely popular Turning Mecard franchise, currently the number one toy franchise in South Korea by sales1. Under the terms of the deal, Mattel will manufacture, distribute and market a wide variety of toys and products inspired by the franchise, including vehicles, action figures, games and other items. Choirock will continue to distribute and manage the Turning Mecard franchise in Korea, while Mattel will hold the right to introduce the franchise in markets throughout the world. Separately, Mattel and Sonokong have entered into a strategic agreement in which Sonokong will serve as Mattel's primary distribution partner in South Korea, with responsibility for sales and product distribution. The agreement applies to Mattel's entire product portfolio, excluding games. Mattel has also entered into a definitive agreement to acquire a 12% equity stake in Sonokong, a publicly-traded company listed on the Korea Exchange. The transaction is expected to be completed later this month.