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WPP’s Grey Group acquires majority stake in S Korean digital agency

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MUMBAI: WPP’s wholly owned company Grey Group has acquired a majority stake in Vinyl I-Co. Ltd., a creative digital agency based in Seoul, South Korea.

Established in 2000, Vinyl-I has evolved from a web/UX design agency to an award-winning full service digital advertising agency which incorporates new media technology to enhance the user experience, especially in the area of interactive design.

Vinyl-I clients include GS Shop, Intel, L'Oreal, Lotte, Microsoft, Naver, Nike, Samsung, SK Telecom, and SM Entertainment.

For the year ending 31 December, 2014, Vinyl-I reported gross revenue of KRW 12.8 billion, with gross assets of KRW 4.2 billion, as at the same date. The agency employs more than 70 people.

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 digital revenues were $6.9 billion in 2014, representing 36 per cent of the Group's total revenues of $19 billion. WPP has set a target of 40-45 per cent of revenues to be derived from digital in the next five years.

In South Korea, WPP companies (including associates) generate revenues of over $300 million, while in the Asia Pacific region, the figure stands at $5 billion.

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