YG Entertainment to be listed on KOSDAQ

After a failed attempt at becoming a public company back in 2010, YG Entertainment has now successfully passed the initial screening to be listed on KOSDAQ, a stock exchange established in South Korea. Amongst the top entertainment companies in South Korea, YG Entertainment will become the second to be publicly owned, after SM Entertainment went public several years ago.

In 2010, YG Entertainment generated $44.7 billion won ($41.0 million USD) in total sales and $9.7 billion won ($8.9 million USD) in net profit, in comparison to SM Entertainment’s $86.4 billion won ($79.2 million USD) in total sales and $21.8 billion won ($20.0 million USD) in net profit. Through the initial public offering, where the public is able to have a first chance at buying shares of the company, YG Entertainment is looking to raise $35 billion won ($32.1 million USD).

In regards to the business move, Yang Hyun Suk, who is the founder and currently holds approximately 48% of the company’s shares, commented that his intention is not to sell his own share of the company for profit, but rather to help YG Entertainment in becoming a more stable and internationalized company.

This move was completed after much controversy surrounding Big Bang’s schedule. Fans of the group had complained that the company forced the group to continue their tour in Japan despite the earthquakes and nuclear situation in the area, solely because the success of the business move was dependent on the success of the tour.

As YG Entertainment becomes public, it is expected that its financial performance, as well as business operations, will become more transparent as the company will be required to disclose certain information to the public in order to facilitate and ensure fair trading. Being the top two companies in terms of revenue and profits generated in the previous year, it is expected that more comparisons will be drawn between YG Entertainment and SM Entertainment in the future.

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