YG Entertainment might find itself in serious financial trouble in four months time. What had previously been welcomed as investments will amount to debt if the situation does not improve. Louis Vuitton Moet Hennessy (LVMH) had previously invested over 50 million USD into YG Entertainment. If YG’s stock prices do not improve by October, they will be obligated to pay back the full amount with interest.
Despite Yang Hyun Suk resigning from YG, he is still the majority shareholder with 16.12% of the shares. YG has expanded into many different businesses from food to fashion using their artists’ popularity, but have failed to see success. With the ongoing ‘Burning Sun’ scandal and B.I.’s recent drug scandal, YG has an uphill battle ahead.