Mattel Inc. finalized strategic relationships with Choirock Contents Factory Co. Ltd. and Sonokong Co. Ltd., two Korean toy industry leaders, to strengthen its presence in key areas throughout Asia.
Under the terms of an agreement with Choirock, Mattel will serve as master toy licensee for the Turning Mecard franchise, currently the No. 1 toy franchise in South Korea in sales. Under the terms of the deal, Mattel will manufacture, distribute, and market a variety of toys and products inspired by the franchise, including vehicles, action figures, and other items. Choirock will continue to distribute and manage the Turning Mecard franchise in Korea, while Mattel will hold the rights 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 percent equity stake in Sonokong, a publicly traded company listed on the Korea Exchange (KRX). The transaction is expected to be completed later this month.