Top Korean talent agency YG Entertainment will set up a joint corporation with China’s No. 3 cosmetics firm Guangzhou Huanya Cosmetics Technology Co., Ltd.
A press release by YG stated on Wednesday that Yang Min-suk, CEO of YG, took part in a signing ceremony for the establishment of the corporation, with cosmetics manufacturer COSON and Huanya in Guangzhou yesterday.
YG will take part in the establishment in the form of indirect investment through COSON, and COSON and Huanya are set to jointly invest 10 million dollars in the corporation to be set up in Hong Kong.
The new corporation will proceed with a new cosmetics business with each firm utilizing their core abilities: YG, with a number of popular artists including Big Bang and 2NE1, will be in charge of brand marketing; COSON will develop and manufacture cosmetics products, and Huanya will take care of distribution throughout China.
YG’s Yang Min-suk was quoted as saying, “We’re at the point where we’re attempting to integrate YG’s brand, that has become an entertainment business through its artists, with new and various fields.”
YG is also set to launch its first clothing brand in November through a joint venture it established last year with Cheil Industries, an electronic material, chemical and textile unit of the Samsung Group.