Exclusive
Operator of Golfzon's 'Strikezon' closes, business transferred to new entity with the same name

[비즈한국] Golfzon Newdin Holdings121440, the holding company of Golfzon Group, changed its name to Golfzon Holdings on March 28. This move is interpreted as a result of the closure of its affiliate, Newdin Contents. Newdin Contents is the entity that operated the screen baseball brand 'Strikezon' and the screen tennis brand 'Tennis Pot.'

In its business report, Golfzon Holdings stated that it transferred the business operated by Newdin Contents last June and filed for business closure in October. It did not specify exactly where the business was transferred. An investigation by BizHankook revealed that the business of Newdin Contents was transferred to another entity that shares the same name, Newdin Contents.

The transfer of the Newdin Contents business by Golfzon Holdings is seen as being influenced by poor performance. According to the Golfzon Holdings business report, Newdin Contents recorded 3.6621 billion won in revenue and 1.43372 billion won in net loss in 2023. In the first half of last year, Newdin Contents also recorded 900 million won in revenue and a 900 million won net loss. As of the end of June last year, the total capital of Newdin Contents reached a deficit of 14 billion won. Although Golfzon Holdings invested a total of 500 million won into Newdin Contents through two capital increases last year, the financial structure did not improve.

The new Newdin Contents entity was established in March of last year. It shares the same name as the Golfzon Group affiliate, Newdin Contents. Golfzon Holdings transferred the Strikezon and Tennis Pot businesses to this new entity.

The Strikezon website introduces itself as having "spun off from Golfzon Holdings." A spin-off refers to a company separating a business unit or subsidiary into an entirely independent firm. Typically, shares of a new entity created through a spin-off are distributed to the parent company's shareholders. If Golfzon Group distributed the shares of the new Newdin Contents entity to Golfzon Holdings shareholders, the family of Kim Young-chan, chairman of the Golfzon Foundation, would become the largest shareholder of the new entity. Golfzon Holdings held a 100% stake in the original Newdin Contents entity, and Chairman Kim Young-chan's family are the largest shareholders of Golfzon Holdings.

However, Golfzon Group stated that it has no equity relationship with the new Newdin Contents entity. A Golfzon official explained, "The new Newdin Contents entity is unrelated to Golfzon Group," adding, "We have confirmed that there is no managerial or equity-based connection." A representative for the new Newdin Contents entity also stated, "It is a new, independent entity unrelated to the existing Golfzon affiliates."

Nevertheless, the CEO of the new Newdin Contents entity, identified as Mr. Noh, is a former Golfzon employee. This suggests that the management of the new Newdin Contents entity is not entirely disconnected from Golfzon Group. BizHankook inquired with Newdin Contents regarding its shareholders and personnel composition, but a company official responded, "It is difficult to comment due to internal reasons."