On September 22, YG Entertainment announced the beginning of another exciting label under their company, headed by Teddy and Kush.

In a report by Osen, YG Entertainment head Yang Hyun Suk discussed the reasons behind the new label. "These days, there are many people who come to YG to do music. But there is a limit to how many artists the label can house, and even if I had ten additional bodies, I wouldn't be able to take care of all the artists," Yang Hyun Suk explained, translated by AllKpop. "That's why I requested for Teddy to establish a new label." Yang Hyun Suk also called Teddy the producer who has the best taste and makes excellent music.

In addition to praising the producer, Yang Hyun Suk discussed Teddy's importance to him as a friend and colleague. "If I were to retire later, Teddy will be the successor to lead YG's musical sector," the CEO revealed. The synergy [between the companies] will be even greater if Teddy concurrently works under YG as a producer and runs his own label."

Although Yang Hyun Suk has taken care of Teddy since his trainee days, it seems like their friendship is much stronger than their mentor/student relationship. "I'm lucky to have a friend like him," Yang Hyun Suk said towards the end of the interview.

Teddy debuted under YG Entertainment's hip hop group 1TYM in 1998. Since then, he has become one of K-pop's most notable producers along with Kush. The pair have taken part in many of 2NE1 and Big Bang's hits, as well as music for the individual members as well.