In this article, I apply to Kakao Entertainment Inc. the externality-endogenous growth model and the new product-endogenous growth model, and examine the feasibility of the models in real business. The endogenous growth models provide theoretical justification for continuous economic growth even with increasing capital accumulation. The empirical tests, however, do not show consistent results. Even though R&D activities and new products of individual firms serve as cornerstones for building the theories, the authors fail to demonstrate business level examples. This case study is, thus, an attempt at filling the gap by applying the real business activities to the theories. Across the world, the entertainment industry witnesses convergence among various service products and concentration of market share resulting in the advent of a few large dominant players. The widespread use of internet and mobile services and the increased consumption of intellectual properties having the one-source-multi-use advantage, all contribute to widening the economies of scope in the industry. Kakao Ent., coping with the environmental change, acquires many businesses in order to create an integrated organization covering the whole IP value chain. Kakao Ent. can serve us as a good example of endogenous growth in three dimensions. First, Kakao Ent. seeks growth not through pumping in more productive factors but by trying to enhance productivity and creativity. Second, Kakao Ent. attempts to grow with new products that the newly integrated organizational form is believed to deliver. Third, Kakao Ent. uses M&A skills to release and maximize the target firms’ externality within the range of the premises, thus to grow. Kakao Ent. shows us, in real life example, how the constituents of the economy are mindful of keeping the return from falling as capital stock rises, and find a way to do so through developing new products and getting the better of externality. Such analysis has policy implications. The current business regulations based on the number of affiliates and subsidiaries of a firm has serious limitations. The government can better cope with externality problems by rather giving private sector a chance to handle them. It can be achieved if the government allows tax breaks and ease the accessibility to capital market for the industries which are believed to have high positive externality.