YG Entertainment has got an opportunity for another growth and new trial.
YG proclaimed its full-fledged launching in China’s performance market, with 100 billion won of investment from China’s conglomerate Tencent group. YG is already recording remarkable growth as an unrivalled entertainment company in Korea. Now, people are paying keen attention to what kind of synergy YG will create based on the big investment from China.
YG Entertainment officially announced on May 27, “YG has got 85 million dollars (approximately 100 billion won) of investment from Tencent Group and Weying that is the No.1 mobile ticketing company in China. YG will keep doing its best to establish the infrastructure to expand our business, discover and nurture local artists, and to launch a full-fledged business in China’s performance market”.
YG is the home for famous musicians including BIGBANG, WINNER, iKON, and 2NE1 and it has recently expanded management business for actors and actresses, recruiting famous actors and actresses including GANG DONG WON, KIM HEE AH, CHOI JI WOO, and CHA SEUNG WON. Furthermore, actor LEE JONG-SUK who is drawing big popularity in China has recently joined YG, to even further enrich YG’s entertainment business.
The investment agreement with a Chinese conglomerate is definitely another good opportunity for YG. YG will be able to carry out business for its artists with a better strategy customized to the local environment, by establishing a joint venture company in China. For the past 10 years, YG has recorded 30 percent or higher growth in its sales and the investment agreement is expected to play an important role in keeping the momentum of such growth, as it provides a platform for YG to more actively carry out its business in China in not only the music industry but also in a wider variety of entertainment fields. Plus, as YG will discover and recruit Chinese local artists, the company will be able to further consolidate its status in the country.
Notably, YG artists are famous for the quality of their performances. The investment agreement will also help YG to further enhance the quality of performance by starting a full-fledged business in China’s performance market. BIGBANG has held multiple China tours so far and Chinese fans always show keen interest and support for BIGBANG’s performances. Now, the investment agreement with Tencent and Weying will give YG a bigger momentum by improving YG’s understanding of the Chinese market. When YG launches its business in China’s performance market, the company will have an opportunity to become the leader of the global contents market as well.
Weying also expressed its big anticipation for investment in YG, saying, “With the remarkable synergy to be created by Weying and Tencent along with global contents leader YG, the value of contents in the new market will grow by more than 10 times”.
YG that celebrates its 20th anniversary of establishment this year has nurtured leading K-pop stars, produced outstanding contents, and consolidated the platform for Korean actors for their global career. Now that YG has attracted the large-scale investment, the company got another springboard for further growth. As such, people are paying keen attention to the growth and achievement that YG will garner in the Chinese market based on such synergy.