If PSY’s viral sensation “Gangnam Style” wasn’t any indicator for you, maybe this will. Louis Vuitton(LVMH) announced on Wednesday that it is investing up to $80 million in South Korea’s YG Entertainment Inc. With a market value of $690 million, the talent agency and record label is home to acts like K-pop hit-makers stars Big Bang, 2NE1, Epik High, Lee Hi and Akdong Musician, as well as a list of Korean actors.
According to Reuters, both companies are currently exploring opportunities for strategic partnership, including YG’s foray into fashion. LVMH’s private equity branch L. Capital Asia is set to 61 billion won ($60 million) in new preferred shares of YG. Additionally, it is in talks to acquire another $20 million in shares from Yang Hyun-suk, the former K-pop star who founded YG and is its largest shareholder, as a YG report points out, thus becoming YG’s second-largest shareholder. Both entities have worked together on the YG-managed rG-Dragon’s debut solo album in 2009 when Louis Vuitton signed on as the clothing sponsor to the project, which marked the first time that the luxury brand backed a South Korean singer.
See our interview with the YG’s 2NE1 here, and read our conversation with Big Bang’s Taeyang here.
