YG attracts KRW 81.3 b from Louis Vuitton, “Will create K-fashion”
LVMH Group’s private equity fund, 2nd biggest shareholder of YG
“K-pop & Louis Vuitton’s brand power: Synergy effect within 1-2 years”
In negotiation with Chinese capitalists
[ 한국경제 = 이유정 기자 ]
“Like BIGBANG, the icon of K-pop, I want to create a brand that can represent Korea. I am deeply interested in penetrating the Chinese market, and there are a number of Chinese capitalists looking to invest, so we will be able to show something soon.”
After signing the investment contract with LVMH Group in Singapore on Sept 14, YG’s YANG HYUN SUK commented, “YG Entertainment houses excellent K-wave contents and LVMH owns the distribution network with world’s top fashion brands. The synergy effect will be enormous.”
YG Entertainment attracted an investment of KRW 81.3 billion from LVMH Group’s private equity fund L Capital Asia. After share sale, L Capital will be the 2nd largest shareholder of YG by owning 11.3%.
YANG commented, “We are open to all possibilities like creating a sub-brand or launching a completely new brand, and are in talks with LVMH.”
With Cheil Mojik, YG jumped in to the fashion business by creating Natural9 in 2012. They recently launched NONAGON. YG is in preparation to launch a cosmetics brand. LVMH, apart from fashion, is also in businesses of hotel and resorts.
YG will devote much energy into entering the Chinese market in different areas. “Artists like BIGBANG are much loved in China, and their environment looks positive. We can show some tangible outcomes within 1-2 years in the area of fashion.”
YANG’s younger brother, YG’s CEO, YANG MIN SUK commented, “BIGBANG’s G-DRAGON used a bag from the M brand, which was much loved by the Chinese tourists. With YG’s excellent K-wave contents and LVMH’s brand power, a great synergy affect will be shown in China.” At YG, YANG HYUN SUK creates music while his brother is in charge of management.
YANG turned down the doubts people have about his relentless challenge in a new area. “People ask me the secret behind YG’s success, but I always tell them we only do what we can do. For the last 17 years we thought about doing this and we launched NONAGON after much contemplation and research. I always thought it unfortunate that Korea did not have a brand that represents the country. Just like our music did, I want to spread the Korean culture far and wide.”
Built in 2009, L Capital Asia has been investing in promising business in China and India. This is the first time they invest in Korea. Their management asset reached $10 billion in late August.
2014. 9. 16.
