YG Entertainment's Yang Hyun Suk is investing in a cosmetics company that targets the Asian market.

According to sources, YG is planning to buy 5 billion Won (about 4.5 million US Dollars) worth of convertible bonds for CosOn on August 12. Convertible Bonds are bonds that can be converted into stock after a certain period of time.

According to industry officials, YG is planning to make a deal with CosOn and enter the cosmetic industry, targeting the Asian market. YG sources have confirmed that they have made a purchase of that amount, but they said they couldn't reveal any specific details. A CosOn source confirmed and said that the funds will be used to operate the company.

CosOn was a tin (Sn) trading company that was established in 1999 and included in the Kosdaq Index in October of 2003. President and CEO of cosmetic brands MizOn and NabiOn Lee Dong Kun purchased CosOn late last year, changing the name from 3H to CosOn. CosOn added cosmetics as the new focus of the company, and is currently working toward that end. CEO Lee previously worked with the Amore Pacific (Tae Pyung Yang) as a researcher.

CosOn signed and paid for a land lease contract with LH Constructions for a 6180m^2 piece of land in Kyung Ki Do, O-san City, GaJang 2 Industrial Zone, for the construction of a cosmetics factory. They plan on completing construction by September.

CosOn made 19.5 billion Won (about 17.5 million US Dollars) in sales and 98.23 million Won (about 88,000 US Dollars) in operational income by K-IFRS standards.