Executives from South Korean record label and talent agency YG Entertainment have announced plans to set up offices in China later this year.

The label is home to K-pop icons Psy, Big Bang and 2NE1.

"We now have more confidence after Psy's global phenomenon and Big Bang's world tour [last year]," YG Entertainment CEO Simon Choi Sung-jun told the South China Morning Post on Monday.

"So probably we can put more resources and invest more into the Greater China market, which we believe will be the next big market next to Japan."

K-pop already has a strong presence in China. On a tour to the country last year, Big Bang played to 800,000 fans in 24 cities, according to Billboard Magazine.

Based on the international growth of K-pop, and of YG Entertainment itself (the company saw a 35 percent increase in revenue in 2012) the company will now look to corner the Chinese market for the genre.

But those within the Chinese music industry shouldn't fear, Choi says, because YG wants to work with those already immersed in the local scene.

"We are going to open up a new dedicated entity in mainland China within this year...by collaborating with local partners," he said. "We hope to get a dedicated and China-oriented strategy."

The company is considering Shanghai and Beijing as possible office locations.

Although YG Entertainment has been seeing eyebrow-raising growth as of late, Choi admits it is still difficult for a record label to turn a profit in the current music scene.

For that reason, Choi says YG Entertainment is looking for other revenue streams beyond just selling records.

"It'll be very hard to generate income from physical and digital downloads [in China]," he said. "So we are thinking of...things such as concerts and events that people can enjoy."

Yet considering the YG Entertainment CEO's claim that half of his company's revenue came from overseas last year (primarily from Japan), there is a strong reason to believe the company's push into China could potentially be a profitable one.

Later this week, Big Bang rapper G-Dragon will perform two sold out shows in Hong Kong.

After the tickets were snatched up in minutes, concert promoters ELF ASIA called the shows the "most sought-after solo K-pop concert in Hong Kong!"

"We are delighted to see the overwhelming response to the first ever solo concert of G-Dragon in Hong Kong," said a statement from the promoters. "G-Dragon will definitely bring the most superb concert experience."