YG Plus, a YG affiliate listed on Korea’s secondary bourse KOSDAQ, revealed in a regulatory filing last Friday that it will issue 845,588 shares to G-Dragon and 110,294 shares to Taeyang -- for 2,720 won per share -- as part of its capital raising efforts.
YG Plus announced the same day its nonlisted subsidiary Codecosme International, the operator of YG’s cosmetics brand Moonshot, will issue 200,000 new shares to G-Dragon and 60,000 new shares to Taeyang -- for 5,000 won per share.
|Taeyang (left) and G-Dragon of Big Bang (YG Entertainment)|
As a result, G-Dragon will be investing about 3 billion won and Taeyang about 600 million won in the two YG affiliates. The payment deadline is Jan. 29.
The two Big Bang members “took the investment decision given the foreseen growth and vision of YG Plus and its various business segments,” an agency official was quoted as saying.
YG Plus, acquired by YG in November 2014, oversees a number of YG’s side businesses including cosmetics (Codecosme), dining (YG Foods), modeling agency (YG K Plus), golf management and merchandising.
While YG Entertainment focuses on managing its artists, YG Plus is responsible for YG’s intellectual property rights management and new business segments.
Moonshot, operated by Codecosme, currently stands at the helm of YG’s expansion into new business areas outside the entertainment arena.
Launched in September 2014, Moonshot opened stores at various key locations in Seoul including the main Lotte duty-free store and the Lotte Young Plaza in central Seoul.
The brand opened 25 stores in Singapore and Malaysia through Sephora, a French cosmetics retailer chain operated by LVMH, in September last year.
Despite its fast entry into various marketing channels, Moonshot’s sales, however, remained below par in 2015, according to market watchers.
Equipped with a new pricing system and product lineup, Moonshot -- which picked G-Dragon as its lead model this year -- is awaiting approval for entry into China, and is geared for further visible expansion in 2016.
By Sohn Ji-young (firstname.lastname@example.org)