South Korean short-form entertainment company Korai Flix has agreed to go public in the United States through a merger with APEX Tech Acquisition Corporation that values Korai at $3.5 billion before the transaction.
The companies announced the definitive agreement on October 21, 2026, in a press release filed with the US Securities and Exchange Commission. If the deal closes, the combined company will be renamed Krflix Group and its shares are expected to trade on the New York Stock Exchange, subject to approval of its listing application.
Deal targets a first-quarter 2027 closing
The transaction is expected to close in the first quarter of 2027, subject to approvals from shareholders of both companies, regulatory clearances and other customary conditions. The announcement said the transaction does not include a minimum cash condition.
Korai’s existing shareholders are expected to roll all of their equity into the combined company. The merger consideration will consist of shares in a dual-class structure, according to the filing. The companies did not disclose the amount of cash expected to remain in the SPAC trust at closing, any additional financing commitments or the percentage ownership expected for each shareholder group.
Those variables matter because redemptions by SPAC shareholders can reduce the cash that an operating company receives. The $3.5 billion figure is a pre-money valuation supplied by the parties and is not the same as cash proceeds or the final market value after listing.
AI-backed short dramas anchor the pitch
Korai Flix operates a mobile entertainment platform built around short serialized dramas. The company said its products also include artificial-intelligence companion avatars and tools designed to help creators produce and distribute content.
The company reported approximately 26 million registered users across 15 Asian countries. That user figure comes from Korai and was not independently audited in the transaction announcement. The filing did not disclose revenue, profitability, paid subscriber numbers, user retention or content costs.
Korai is positioning its combination of short video and AI features as a way to serve mobile audiences across multiple languages and markets. Short dramas typically use episodes lasting only a few minutes, making them easier to consume on phones and enabling platforms to release stories in frequent installments.
Reuters reported that the microdrama format has been expanding beyond China and cited industry data indicating rapid growth in viewing. The broader trend gives Korai a large addressable market, but it also brings competition from established streaming groups, social-video platforms and other short-drama applications.
Execution and disclosure will shape the listing
The next phase will require a registration statement and more detailed financial and operating disclosures. Investors will be able to assess the company’s historical results, revenue mix, acquisition costs, content economics and risks once those filings become available.
The transaction also depends on APEX Tech maintaining sufficient shareholder support and meeting listing requirements. SPAC deals can be renegotiated or terminated before closing, while redemption levels and market conditions can materially change the amount of capital available to the combined company.
For Korai, a successful listing would provide a public-market platform for funding content, technology and regional expansion. Its ability to convert registered users into durable revenue, manage production spending and demonstrate that its AI features improve engagement or operating efficiency will be more important than the headline valuation.
The companies said their boards unanimously approved the merger. Until the conditions are satisfied and the transaction closes, Korai will remain a private company and the proposed NYSE listing is not assured.