As revealed in a filing on Monday, South Korea's entertainment behemoth CJ ENM is investing 100 billion won ($82.3 million) in KT StudioGenie, the media arm of the domestic telecoms business, in an effort to forge bilateral relations for media output aimed at international audiences.

The two firms signed a memorandum of agreement on the same day, establishing a deadline of 90 days from the announcement for the purchase to be completed. As a consequence, CJ ENM will become a minority shareholder in KT StudioGenie, holding a nearly 10 percent ownership in the company. They stated that they are now in the process of finalizing the terms of the agreement.

As a result of the agreement, KT StudioGenie, a fully owned subsidiary of KT, would be able to have its media material disseminated on CJ ENM's pay television networks such as tvN and streaming media service platforms like Tving. KT's media arm will also collaborate with CJ ENM to generate content based on the intellectual property of KT StudioGenie.

Aside from that, the two firms will examine ways to collaborate further in the digital music sector, including the creation of an investment vehicle and the establishment of a committee comprising of leaders from each company.

KT StudioGenie is a media content management company that handles a variety of industries spanning from content creation to distribution. A few of its ventures are webtoons and web novels, as well as a music streaming service and a satellite TV network.

The announcement comes months after CJ ENM revealed plans to separate its content production division in November, in order to better position the company to target a worldwide audience in its expansion goals. The carve-out proposal, which was announced earlier this year, was said to have been put on hold.

A statement by CJ ENM's chief executive, Kang Ho-sung, claimed the company's partnership with KT will "exploit CJ ENM's move to develop to a worldwide comprehensive entertainment corporation."

The closing price of CJ ENM's stock on Monday was 1.6 percent higher than the previous trading day's closing price. KT's stock price rose by 0.6 percent in the last trading session.