SEOUL - Psy, Big Bang and other YG Entertainment artists have now become shareholders of their own management agency.
YG's main producer Yang Hyun-suk and CEO Yang Min-suk allocated a total of 81,400 shares to 18 of the agency's artists, transferring parts of the preemptive rights they hold as YG's majority shareholders on Tuesday.
In doing so, the two company chiefs became the first ever in the local entertainment industry to transfer exclusive preemptive rights to the agency's artists.
The decision allows the 18 YG artists to have a greater say in the agency's recapitalization and business management process and become more prominent actors in YG's operations.
In February, YG Entertainment's board of directors decided to increase the company's capital by issuing new stocks worth 51.2 billion won. The new stocks will first be offered to existing shareholders, after which the forfeited shares will become available to the public.
On May 7, five days after the payment date on May 2, YG will increase the number of shares owned by new investors and current shareholders by 30 per cent for free.