Subscribe
E-Paper
.jpg/dims/resize/740/optimize) |
| A popup store of YG Entertainment's cosmetic brand Moonshot at Lotte Young Plaza, in Myeong-dong, central Seoul. / Courtesy of YG Entertainment |
By Kim Jae-heun
Korea's top talent companies, such as YG Entertainment and S.M. Entertainment, have recently been diversifying their businesses to expand their influence into the fashion, sports and food industries.
YG has aggressively stretched its business into various industries over the past four years, now holding 13 subsidiaries although many of them are still unfledged and not yet generating profits.
Music is still the main source of income for the entertainment company, which also operates subsidiary labels like HIGHGRND owned by Epik High member Tablo and The Black Label owned by Teddy and Kush.
" src='https://img.koreatimes.co.kr/upload/newsV2/images/16-04(276).jpg/dims/resize/740/optimize' /> |
| An outer view of "PLAY KPOP" located in Seogwipo, Jeju Island. / Courtey of YG Entertainment |
YG first entered the fashion market by launching luxury streetwear brand NONA9ON in early 2012 with former Samsung textile subsidiary Cheil Industries, which has merged into Samsung C&T and formed a fashion group. The brand currently sells its products through popup store at retailers, such as 10 Corso Como in Cheongdam and Beaker in Cheongdam and Hannam. Following its early success in the domestic market, the brand launched international popup stores in Milan, Shanghai and Hong Kong.
In February 2014, the entertainment company acquired Korean model management company K-Plus that has contracts with around 170 fashion models. Eight months later, the model company changed its name to YGKPlus and is currently operating under the management of CEO Ko Eun-kyoung. Under the partnership, YGKPlus models appear in music video of YG acts and the entertainment company's fashion and beauty ads.
" src='https://img.koreatimes.co.kr/upload/newsV2/images/16-05(139).jpg/dims/resize/740/optimize' /> |
| An inside view of the YG Entertainment's K-pop museum "PLAY KPOP" located in Seogwipo, Jeju Island. / Courtey of YG Entertainment |
YG continued its expansion in the beauty business in the same period, launching cosmetic brand Moonshot, targeting women in their 20s and 30s. Half a year after, it opened YG Golf Academy and a restaurant Samgeori Butcher in the trendy Hongdae district of western Seoul. YG nurtures talented golfers and hosts a tournament. It also aims to be a culinary leader in pork restaurants, opening two more franchise restaurants in Yeouido and Myeong-dong, both in Seoul.
Media and advertising company YG Plus Inc. is YG's most anticipated business. It was established after a takeover of Bogwang Group's advertising subsidiary Phoenix Holdings Inc. CEO Yang Min-suk, the second major shareholder of the company and brother of YG CEO Yang Hyun-suk, acquired the ad firm to further expand YG's profits beyond the music business and create synergy with other cultural content fields.
" src='https://img.koreatimes.co.kr/upload/newsV2/images/16-06(74).jpg/dims/resize/740/optimize' /> |
| The Inner view of S.M. Entertainment newly opened cafe "SUM" in Samsung-dong, Seoul. / Courtesy of S.M. Entertainment |
Meanwhile, SM has gone into the gaming and food businesses, expanding its new business based on its original content and signed performers. In September 2014, SM launched the mobile game "SuperStar SMTOWN," in which players tap along with the rhythms of songs released by SM. The six-story building of SMTOWN Coex Artium is a cultural space that sells merchandise related to the entertainment company's musicians.
Another subsidiary, S.M. Culture & Contents (SM C&C), is a travel agency and TV production company established in May 2012. It offers travel products, attracting tourists to Korean musicals and other cultural performances. In May, SM signed an MOU to collaborate with E-mart on launching private label (PL) products like sparkling water, ramen or popcorn branded with promotional pictures of EXO or SHINee.
Like YG, SM is also running its own premium tapas restaurant SMT Seoul and cafe SUM.
