On the fashion magazine 'High Cut' website, it has been stated that YG Entertainment - One of Korea's top 3 entertainment companies, will attract 100 billion won (Roughly $886,000 USD) investment from Naver.
Within Korea, Naver is one of the biggest leaders in content and one of the largest Internet companies in the world - host to a global messenger line, and a Korean equivalent of the western world's Wikipedia and Google Search, it is a company that is expected to strengthen and grow in dominance throughout the global market using strategic alliances to exhibit new potential synergies.
YG Entertainment has already attracted 50 billion KRW worth of investment within Naver's third-party allocation of common shares, with Naver becoming the second largest shareholder with a 9.14% stake through the investment. In addition to this, Naver also invested 50 billion KRW within the YG Investment Fund, a subsidiary of YG Plus, as to invest in the mobile ecosystem which includes media content.
Yang Hyun Suk, the CEO of YG Entertainment stated, "Based on the music content business, YG Entertainment has recorded a sales growth of more than 30% each year for the past 10 years, which has continued to expand its content field whilst maintaining the rapid growth. We will continue to grow as a content leader throughout our partnership with Naver, who is a platform leader, whilst expanding our star marketing field and engaging with a large number of broadcasting producers to engage in content planning, recruitment of artists, investment and production capabilities."
In May last year, YG Entertainment invested in Tangent, a leading Internet company within China, and Wuying, a mobile ticketing specialist, to expand the Chinese market - Sadly with THAAD still a big issue for Korean businesses and economics, the effects it has had on this investment is yet to be reported on. But hopefully with the new collaboration and investment between Naver and YG Entertainment, globalisation of YG Entertainment's artist and events - Such as concerts and fan meetings, will not be too far into the future, and possibly something to look forward to.
What are your feelings about this new investment? Do you feel YG Entertainment is a contender for the top 3 Entertainment companies in Korea? Let us know in the comments below!
