LVMH is gearing up to enter the K-pop market. The world's largest luxury goods giant – which owns Louis Vuitton, Dior and Fendi – is about to invest $80 million in YG Entertainment, the South Korean hit factory that represents huge stars like 2NE1, BIGBANG and PSY.
According to Reuters, the deal will help YG expand into fashion and the two companies are also considering a strategic partnership. It's just more proof that the South Korean pop culture wave known as hallyu is gathering even more momentum – while there's no doubt that top-tier YG talent like G-Dragon and CL are true style originals, their agency has yet to make a dent in the fashion industry proper.
That look set to change with the LVMH deal. LVMH's private equity branch L. Capital Asia will buy new shares worth $60 million, and is angling to purchase another $20 million of shares from YG founder Yang Hyun-suk. The deal will see the luxury giant become YG's second biggest shareholder.
This isn't the first time LVMH have backed K-pop in a big way – in 2009, Louis Vuitton became the first luxury brand to sponsor a South Korean singer when they partnered up with BIGBANG member G-Dragon for his solo album release.
K-pop fans won't have to wait too long to see what YG Entertainment have in store, though. The business is already set to launch a fashion brand called NONA9ON with Samsung on September 9. Mysterious promo videos haven't revealed much about the label (beyond sending excitable K-pop fans into a frenzy), but early reports say that the line will be inspired by streetwear and hip-hop.
Watch 2NE1's latest video for "Gotta Be You" below:
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