[NEWS] YG ENTERTAINMENT TO GO PUBLIC

‘When we obtain the additional revenue through the public listing, we will be able to do far better than what we have achieved over the last 15 years.’

Korean talent agency YG Entertainment, which manages the popular boy band Big Bang and girl group 2NE1, will officially list on the Kosdaq on Nov. 23.

With YG shares expected to begin trading in less than two weeks, investors will be able to trade stocks of the country’s three big entertainment firms, SM, YG and JYP, which are leading the spread of K-pop across the globe.

“So far, YG has been leading the trend,” said YG Entertainment CEO Yang Min-suk in an interview with the JoongAng Ilbo on Tuesday. “Going public on the Kosdaq shows our belief that the company will continue to grow in value in the future.”

YG, the nation’s second-largest entertainment firm after SM Entertainment, was founded in 1996 by Yang Hyun-suk, a former member of Seo Taiji & Boys.

The former K-pop star is currently chief producer and president of the company. Min-suk is his younger brother.

While the older brother is now in charge of nurturing celebrities and producing music, Min-suk takes care of managing the company.

“Our roles are clearly divided,” said Min-suk, who earned a master’s degree in business management at Yonsei University. “My brother doesn’t know all the minute details involved in running the company.”

YG’s sales last year jumped to 44.8 billion won ($40 million) from 18.5 billion won in 2008. YG’s operating profit last year was 10.3 billion won, and its net profit over the same period was 9.8 billion won.

It has been so successful this year that sales in the first half almost match those for the whole of 2010.

“When we obtain additional revenue through the public listing, we will be able to do far better than what we have achieved over the last 15 years,” the CEO said.

[NEWS] BIGBANG AND 2NE1 EVOLVE THE INTERNATIONAL FACE OF KPOP

K-Pop has been laying down its foundation and quietly deepening its roots within the global music industry. snsd and Kara in Japan, Wonder Girls in America, the whole SM Family and JYJ in Europe, it is without a doubt that K-Pop has increasingly globalized.

The driving force behind the mass accumulation of fans for K-Pop are the large entertainment companies that train and invest in their idol groups for a long period of time. Powerful performances and amazing vocal abilities have widely captured the hearts and ears of those who are tuned into mainstream K-Pop culture and have even contributed to the universal pop genre with new sounds and a distinct style. Social networking services have helped disperse K-Pop to different countries all over the world.

In the midst of the K-Pop diaspora all around the world, YG's Big Bang and 2NE1 have made a big jump in receiving awards in renown American and British music award ceremonies. They have proven that other genres such as hip hop (a little different from general K-Pop market) are also making waves and becoming a competitive force in foreign countries.

Already known for their record selling music as a group and solo artists on iTunes, Big Bang received the award for "World Wide Act" at the MTV Europe Music Awards.

Big Bang, representing the Asia Pacific, was up against other global artists such as Lena representing Europe, Britney Spears representing North America, Abdelfattah Grini representing the Middle East and Restart representing Latin America. Competition seemed tough, but Big Bang came out on top. The fact that they surpassed Britney Spears in this category is a huge feat, and proves that K-Pop stars are no push overs in the global market. Although a scattered one, Big Bang's achievement proves that K-Pop has a solid fan base all over the world.

Similarly to Big Bang's feat 2NE1 surpassed other global musicians that represented nine different countries such as America, Mexico, Malaysia, Australia, New Zealand, and Venezuela. Not only did fans from Korea pitch in to vote, but fans from all over the world made this possible for 2NE1. Most of 2NE1's votes came from America and the Philippines, not Korea.

Big Bang and 2NE1 are both groups that have their own style of music and sense of expressing themselves, something that is different from the milieu of other K-Pop groups. They have something more to offer other than another group of cute and sexy girls/boys that come with catchy tunes.

Their achievements in the global market reached another milestone for K-pop as a whole, as well as open the world to a different face of K-Pop. The day K-Pop sits down with a confident niche in the global sphere doesn't seem too far off.

Source : Soompi

[NEWS] YG ENTERTAINMENT SALES INCREASE DUE TO BIGBANG

It was recently revealed that YG Entertainment‘s stock price will only be worth 80% of SM Entertainment‘s.

Shinyoung Securities reported on the 14th that once YG Entertainment is registered with KOSDAQ on the 23rd, their estimated stock price will be roughly $58 USD per share. Considering that YG has had less promotions overseas and restricted group member promotions, they inevitably came up 20% short in comparison to SM Entertainment.

However, it was also reported that YG was the second most successful entertainment agency, boasting a sales boost of 55.5% from 2008 to 2010, and a 173% increase in business profits. Their sudden jump in profit is mainly credited to their boy band, Big Bang. Reviewing the first half of 2011, Big Bang alone brought in 52% of YG Entertainment’s income; 60% if you include each member’s solo projects, and their albums are now selling over 4 times more compared to back in 2009. YG’s girl group 2NE1 currently brings in 40% of what Big Bang brings in for total earnings, but with their escalating fame, it is estimated that they will be able to bring that percentage up to 70% by this time next year.

Shinyoung Securities also reported that the agency managed to earn a high profitable income this year compared to their lack of artist promotions and credited their success to the bond between the YG Family artists. It’s beneficial but risky at the same time that manpower is the drive behind YG’s success, however, the chances of YG artists surviving competition were predicted to be high.

Source: Herald via Nate (via allkpop)