LVMH Invests $80 Million in K-Pop Giant Behind Psy
The luxury goods group is expected to help South Korea's YG Entertainment accelerate a push into fashion
French fashion and luxury goods powerhouse LVMH Group has invested $80 million in South Korea's YG Entertainment, the K-pop giant has announced.
L Capital Asia, the private equity arm of LVMH, has paid $60 million for preferred shares, which can be converted into YG common stock after a year. The firm also plans to purchase an additional $20 million of stock from YG's founder, former musician Yang Hyun-suk.
This is the first time L Capital Asia is investing in a Korean company. The two parties signed the agreement during a ceremony in Singapore over the weekend.
"The partnership with L Capital Asia will be a jumpstart for YG as it grows and spins out new trends," said Yang.
Observers predict that the joint venture will help YG move into the fashion and cosmetics business. YG's artists have been recognized as regional fashion icons, while the company also recently launched a popular clothing line, NONAGON, with Samsung's Cheil Industries.