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THE BLACK LABEL is implementing a startling shift as part of a calculated strategy in the entertainment sector. On January 13, 2024, Chosun Biz reported that the well-known record label and production company is preparing to move its main headquarters to the Hannam W Office. The headquarters is located in Hannam-dong, Yongsan-gu, Seoul.
As soon as the news broke out, fans of several K-pop groups, such as BLACKPINK, BIGBANG, 2NE1, and more, expressed their delight on X.
Since its inception in 2016, THE BLACK LABEL's long-term base has been at the YG Entertainment office in Hapjeong-dong. The shift is planned for the first half of 2024 and may occur as early as next month.
"No one wanna be with YG anymore": Fans and netizens show their support over THE BLACK LABEL's decision
Although it formerly owned the majority share in THE BLACK LABEL at 45%, YG Entertainment has currently come down to hold only a 21% share in the company. SAEHAN Venture Capital, another of THE BLACK LABEL's original investors, has consistently accumulated business shares since 2021. Additionally, the label has appointed SAEHAN CEO Lee Jung Hoo as an independent director.
Zion.T, Jeon Somi, BIGBANG's Taeyang, Park Bo-gum, and other celebrities are currently signed with the company. The label has constantly been broadening its operations, which resulted in an 88% rise in sales to 22.4 billion won in 2022 from the previous year and an increase in operating profit from 200 million won.
Analyses suggest that THE BLACK LABEL is starting to operate independently as an entertainment firm, moving past its status as a label under YG Entertainment. The label was established in 2016 by Park Hong-jun (Teddy), who previously served as producer representative for YG Entertainment.
Initially, the label produced albums for YG Entertainment vocalists remotely. However, it has since broadened its horizons to support up-and-coming musicians. After the move is finished, the company anticipates approaching venture capitalists for more funding to secure more contracts, sign more artists, and strengthen its label.
As a result of this massive move, fans and netizens did not hesitate to express their views on Park Hong-jun, aka Teddy's business strategy. K-pop enthusiasts noted that the most promising artists, groups, and now even a subsidiary have parted ways with YG Entertainment in the past few months.
More about THE BLACK LABEL's move to Hannam W Office
The headquarters were relocated mostly due to the impact of SAEHAN Startup Investment. THE BLACK LABEL's move to Hannam-dong was directly overseen by SAEHAN Startup Investment CEO Lee Jeong-hoo.
SAEHAN Startup Investment is the second-most significant stakeholder (33% ownership) in Neovalue PFV, having invested over 1.3 billion won. CEO Lee Jeong-hoo is an independent director of THE BLACK LABEL as well.
According to industry sources, the label's choice to relocate is advantageous for its goal of separating from YG Entertainment. However, as of late, the entertainment company has taken steps to broaden its scope, hiring various performers and holding open casting calls to find fresh talent.
This move comes right at the heels of BLACKPINK members choosing not to renew their individual contracts with YG Entertainment and Jennie establishing her own independent label. On top of that, G-Dragon's exit from the company has shaken the foundation of YG Entertainment. The company's stock price declined after the aforementioned artists parted ways.
South Korean media outlet Chosun Biz noted that the change of location becomes a tactical and symbolic move that reflects the changing character of the music industry as it positions itself for greater development and innovation.
Meanwhile, YG Entertainment reportedly removed G-Dragon, BIGBANG, and the solo profiles of BLACKPINK members Jisoo, Jennie, Rosé, and Lisa from its official company website. On January 12, 2024, fans noted that the artist profiles had been quietly removed following G-Dragon's exit from the company and BLACKPINK terminating its solo contract with YG Entertainment as well.
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