YG Entertainment to establish a company in China

YG Entertainmentis reported to be preparing for further advancement in China by opening up a company.

YG Entertainment stated,“In order to expand our business ventures ingreaterChina, we are planning to start a separate company there… We are currently cooperating with our partners to create a company, but we are unable to mention the specific details on what it will be like as of now.”

According to Hong Kong’s South China Morning Post, YGE gained confidence to enter the Chinese market from the success ofPsyandBigBang‘sworld tour. The agency predicts that it will be difficult to make profit from online downloads and physical album sales in the country, so they plan to focus its business on concerts and events.