SHOWBOX Finalizes Disclosure of Contract Termination for Drama Witch Revenue Rights Sale - 13.7 Billion Won Contract Canceled, 8.7 Billion Won Receivable Loss

SHOWBOX has finalized the disclosure of the termination of the drama Witch production investment and revenue rights sale contract signed in December 2022 due to the counterparty's breach.
Out of the total contract value of 13.7 billion won, 5 billion won was received and is non-refundable, but the remaining 8.7 billion won was not received, resulting in a loss. The expected cash inflow has been disrupted.
The counterparty, Thin&Studio Co., Ltd., formerly named Arc Media, changed its corporate name, raising concerns about its reliability and execution capability.
[AI Summary]SHOWBOX lost 8.7 billion won in expected cash inflow due to the termination of a 13.7 billion won revenue rights sale contract. Although the termination occurred in the past, the delayed disclosure after a three-year deferral period now impacts the market. A short-term negative effect on the stock price is anticipated.