Future of YG Entertainment may lie in new girl group Babymonster

YG Entertainment has a lot to prove this year. While some of its most prominent stars are leaving the agency, the company's scandal-ridden founder Yang Hyun-suk made an unofficial comeback on New Year's Day after supposedly stepping down as ...

A captured image of a video titled “YG Next Movement" released by YG Entertainment teased the debut of girl group Babymonster on Sunday. [SCREEN CAPTURE]

YG Entertainment has a lot to prove this year.

While some of its most prominent stars are leaving the agency, the company's scandal-ridden founder Yang Hyun-suk made an unofficial comeback on New Year's Day after supposedly stepping down as the CEO four years ago, receiving mixed reactions from market watchers on the future of the company.

YG Entertainment on Sunday released a video titled “YG Next Movement,” where Yang and other artists from YG Entertainment introduced the agency’s upcoming girl group, Babymonster. The group was hinted at a week earlier with only a picture of seven silhouettes, and on Sunday their faces were shown for the first time, though no other details were given.

The video did not explain anything about Yang’s return to the agency, either, and only introduced him as the YG Chief Producer.

“They have the YG soul,” he said in the video. “We hope the stars wow the world like they’ve been surprising us with each monthly test. We ask that you judge them based on what you see and hear.”

This is the first time in three years and six months for Yang to make a public appearance as a key figure of the agency since stepping down as the de facto head of the agency.

On June 14, 2019, Yang uploaded a post on YG Entertainment’s website saying that he will “let go of all duties at YG Entertainment” due to “degrading and insulting words being circulated like truth."

Yang Hyun-suk is introduced as YG Chief Producer in a video titled “YG Next Movement" released by YG Entertainment on Sunday. [YG ENTERTAINMENT]

Yang Hyun-suk, founder and largest shareholder of YG Entertainment, leaves the Seoul Central District Court after being ruled not guilty for allegations of blackmailing an informant on Dec. 22. [NEWS1]

Yang was reported to the police in 2019 for allegedly providing prostitutes to potential investors and blackmailing an informant, known to be a former trainee at the agency. The prosecution did not file charges on the sexual solicitation allegation and the Seoul Central District Court found Yang not guilty of threatening the information on Dec. 22.

But Sunday’s video does not signal an official comeback by Yang, according to YG Entertainment. He is still the largest shareholder of the company with 16.9 percent but has not held any official position within the company since, a company spokesperson said.

“He has not been reported as a manager of the company since 2011,” the spokesperson said. “His involvement with Babymonster is restricted to the role of music producer; he is not a company manager.”

The stock market reacted positively to Sunday’s news, as analysts had been betting on the new girl group’s debut for the future of YG Entertainment. YG Entertainment’s shares closed at 48,050 won ($37.75) on Monday, up 9.6 percent compared to the previous trading day.

“The company’s shares had been falling due to its dependence on a single artist, Blackpink, and it is unclear as to whether they will renew their contract with the agency,” said Park Ha-kyung, an analyst at Korea Investment & Securities. “The growth of [boy band] Treasure and the success of the new girl group will be the momentum the company needs to recover.”

The two bands, Treasure and Babymonster, will have big shoes to fill indeed, as some of the agency's biggest names have recently bid their farewell.

All six members of boy band iKON left YG Entertainment last month and signed with 143 Entertainment on Sunday. [YG ENTERTAINMENT]

Girl group Blackpink [YG ENTERTAINMENT]

Actor Gang Dong-won and boy band iKON announced last month that they will leave YG Entertainment. The actor did not announce his new agency yet, but iKON said Sunday that all six members signed with 143 Entertainment, home to Mashiro of girl group Kep1er and Yeseo of girl group Limelight.

Daesung of Big Bang also left YG Entertainment last month, and Taeyang of the same band changed his management from YG Entertainment to the company’s affiliate, The Black Label. Girl group Blackpink will have to decide to renew, or not, their contracts this year, with seven years having passed since the members’ debut in August 2016.

Treasure will embark on its Asian tour starting in March. It will hold eight concerts in seven cities including Taipei, Kuala Lumpur, Jakarta and Bangkok.

“We will work on accelerating our artists’ activities in the global scene, especially with the debut of our new group Babymonster,” the agency said.

Details of the new girl group have not been confirmed yet, including the debut date. The number of members has also not been officially confirmed, despite the seven silhouettes given in the poster image.

“We will work on accelerating our artists’ activities in the global scene, especially with the debut of our new group Babymonster,” the agency said. BY YOON SO-YEON [yoon.soyeon@joongang.co.kr]