WPP Group expands South Korea interests

WPP Group - through its wholly-owned Grey Group subsidiary - expanded its Asia operation on Wednesday, with the purchase of a majority stake in Vinyl-I Co.

The FTSE 100 advertising and communications agency reported its purchase to the market by describing Vinyl-I as “a leading creative digital agency based in Seoul, South Korea”.

Vinyl-I reported gross revenue of KRW 12.8bn (£7.3m) in the year to 31 December 2014, with gross assets of KRW 4.2bn. It employs more than 70 people.

The agency was originally established in 2000 as a web and UX design firm, and has evolved to a fully-fledged advertising agency specialising in digital and new media, according to WPP. Key clients include GS Shop, Intel, L’Oreal, Lotte, Microsoft, Naver, Nike, Samsung, SK Telecom, and SM Entertainment.

“This acquisition marks a further step towards WPP’s declared goal of developing its networks in fast growing markets and sectors and strengthening its digital capabilities”, WPP’s board said in a statement.

“In South Korea, WPP companies (including associates) generate revenues of over $300m (£204.8m) and employ around 1,500 people. In the Asia Pacific region, WPP companies generate revenues of $5bn and employ around 50,000 people”, it added.

The purchase was a step towards WPP’s stated goal of generating 40-45% of its revenues from digital in the next five years.