YG Entertainment Corp., South Korea’s high-brand entertainment agency who has Psy as its client, said Wednesday it will sell new shares worth 61 billion won ($69.7 million) to the investment fund arm of French luxury group LVMH, a move seen as paving the way for expanding its fashion business globally.

YG Entertainment said it will issue 1.35 million convertible preferred shares, which are priced at 44,900 won, through a third-party allotment with L Capital Asia, the Asian trading arm of LVMH. The preferred stocks can be converted into common stocks a year later.

“(The stake sale) is aimed at long-term development and entry into new business,” the company said in a regulatory filing without giving further details.

Once the breeding ground of hip-hop musicians, YG Entertainment has grown into one of the top three record companies in South Korea, featuring big-name K-pop stars including Psy, Big Bang and 2NE1. (Yonhap)