THE REPUBLIC OF KOREA CHEONG WA DAE

HOME | TRAVEL & CULTURE | CULTURE | KOREAN WAVE NEWS

KOREAN WAVE NEWS

K-pop entertainment agencies branch out into other industries

Dec 08, 2014

Big Bang, Girls Generation, Super Junior.
They are a few K-pop stars who have taken the world by storm, capped off, of course, by Psy and his YouTube hit, "Gangnam Style."
Behind every great act in Korea is an entertainment agency that cultivates and promotes them.
Leading the pack is YG Entertainment, one of the powerhouses driving the so-called Hallyu or Korean Wave.
Founded in 1996, it created a success formula with idol groups like Big Bang and 2NE1, and went public on Korea`s tech-heavy Kosdaq stock market three years ago.
YG now boasts annual revenue of some one-hundred-four million U.S. dollars, more than 2-hundred-50 employees and more than 20 artists under its belt.
On the back of their success, entertainment giants are now branching out to other businesses.
In September, YG launched apparel brand Nonagon using its fashionable artists who influence fans all over the world to market it.
Through pop-up stores in Italy, Hong Kong and China, it aims to rake in 90 million U.S. dollars by 2017.
(Kor)
"I`ve always thought that fashion and music go together. When we think of Big Bang and 2NE1, we think of their songs, but behind the performances, it`s their styling and fashion that make them whole."
It even jumped on the popularity of Korean cosmetics with its own line, Moonshot targeting K-pop fans with Asian facial features.
Recognizing YG`s growth potential, French luxury goods giant LVMH has announced it will invest up to 80 million dollars in the company.
While YG may be at the top right now when it comes to branching out, it`s not the first.
SM Entertainment, a hallyu pioneer, started diversifying its business two years ago.
It acquired travel agency BT&I, offering music fans special concert tours in Korea.
And last year, SM collaborated with publisher Design House to release the lifestyle magazine "The Celebrity," printing an average of 80-thousand copies a month.
(Eng)
"SM and YG are entering these businesses, they could probably see some synergy when they utilize their artists in those areas and from customer`s stand point, they get more touch points."
Market watchers say it`s important for them to keep their capital flowing as it`s too early to call these ventures a success.
To promote their new businesses, it`s also vital to keep the K-pop boom going.
(Kor)
"In addition to reaching out to other industries, it`s important that they stick to their original source of profit, producing good music to expand their fan base worldwide."
(stand-up)
"If YG and SM`s new business ventures enjoy the same success that K-pop has, it will not only provide a new source for profits, it will also give a boost to a new kind of Korean wave.
Connie Kim, Arirang News.
Reporter : ***