Louis Vuitton's Business Group Invests In YG Entertainment

K-Pop fans may expect future collaborations between Louis Vuitton and Big Bang and 2NE1.

On August 20, Reuters reported that Louis Vuitton's company, LVMH (formally LVMH Moët Hennessy • Louis Vuitton,) will invest up to $80 million in YG Entertainment. This will be one of the largest investments into a Korean entertainment company from outside of the country.

YG Entertainment made international headlines with Psy's "Gangnam Style," but its artists like Big Bang and 2NE1 are known in Asia as fashion icons. YG has sought fashion partnerships before, including working with Korean and Chinese fashion and makeup companies.

LVMH is the world's largest luxury goods maker, and it is the sponsor of L. Capital Asia, which will invest around $60 million to buy shares in YG Entertainment. L. Capital Asia is also in talks to buy $20 million in shares from YG's CEO Yang Hyun Suk, which will make L. Capital Asia (and LVMH) the second-largest shareholder of YG Entertainment.

As Korean media becomes more popular throughout the world, international brands are realizing the worth of creating relationships with Korean companies. By chance, Yves Saint Laurent and Jimmy Choo products made headlines when fans of the drama You Who Came From The Stars frantically purchased lipstick and shoes that characters of the show wore.

YG Entertainment has set itself up not only as an entertainment company, but the company has also successfully diversified to make fashion branding synonymous with its image.

International companies find YG Entertainment more attractive because of this.

LVMH has been working with YG Entertainment since 2009, when Louis Vuitton was the clothing sponsor of Big Bang's G-Dragon's solo album, "Heartbreaker."

Even though YG Entertainment has seen its share of scandals in South Korea recently, leading to stock prices dropping, the news of LVMH's investment led to an immediate rise in the value of YG's shares. By the end of the day in Korea on August 20, YG Entertainment was valued at $690 million.

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