News YG Reportedly Preparing To Repay 67 billion Won Investment From Louis Vuitton (1 Viewer)

[Darkyoda47]

YG reportedly preparing to repay 67 billion won investment from Louis Vuitton

Translated Korean entertainment news from Korea's Naver

dailynaver.blogspot.com

Article: Burning Sun Butterfly Effect...YG to repay 67 billion won to Louis Vuitton

Source: Maeil Business

YG Entertainment is reportedly preparing to repay the 67 billion won investment from Louis Vuitton Moe Hennessy (LVMH).

According to sources, YG is preparing to make the payment using their own cash flow as they're having difficulties converting their own stock due to the recent stock price plunge. The reason for this difficulty is because of YG's declining stock price of over 40% in 6 months as a result of the ongoing prostitution scandal and tax investigations involving its former executive, Yang Hyun Suk as well as 'Burning Sun gate'involving artist and Big Bang member 'Seungri.'

YG Entertainment received a total of 61.15 billion won from Louis Vuitton in October 2014 with a promise to convert the shares to stock or cash 5 years later. The 135,99688 shares will be converted at a price of 44,400 won. If LVMH chooses not to convert the shares and requests a repayment, YG will have to repay 67 billion won plus 2% annual interest.

According to an investment banking (IB) expert on the 11th, "YG Entertainment announced that they're raising funds for LVMH's convertible preferred stock and have reportedly began the process. YG Entertainment is reported to be looking for a redemption request and not a stock conversion after an official request from Louis Vuitton due to the stock price decline."

He stated, "even if Louis Vuitton executives decided against redemption and went for a conversion instead with a request for damages, YG will nonetheless be subject to a felony penalty at that point and as a result end up having to repay the investment anyway so this repayment requirement was only a matter of time."

According to the IB official, "YG has been struggling to deal with the investment ever since the beginning of the year when 'Burning Sun' scandal broke. As a result of the constant news in the media and the declining stock price, Louis Vuitton sent YG Entertainment a preliminary letter requesting a repayment if the situation doesn't improve. The actual official repayment request is expected to be sent to YG Entertainment by the end of July or August as is customary."

YG Entertainment has stated that even though they're required to pay back this investment this will not affect the company's financial condition.

Stay tuned for updates.

1. [+4,946, -57] Naver is their 2nd largest shareholder though so Yang Hyun Suk will never be investigated...
2. [+2,052, -66] Honestly businesses like YG that have no social awareness need to be put out of business...they can adversely affect society if they don't fulfill their corporate social responsibilities...
3. [+1,059, -19] Are you kidding? Naver is their 2nd largest shareholder and they'll never want to mess with the national pension...just by looking at that alone you can imagine the result..
4. [+919, -50] Things wouldn't have gotten this bad if he didn't debut with Seo Taiji..Yang Hyun Suk is just a natural born thug..
5. [+712, -15] The most angry ones are the shareholders of the National Pension..
6. [+171, -0] YG accounts for 5.5% of the national pension...the public's blood must be boiling right now..
7. [+72, -1] Why our national pension invests in such a trash company is insane!! Just collect all of it at this point and invest it in growing industries and corporations instead..
8. [+65, -2] They'll go broke soon..just wait..don't even think about coming out on TV!!
9. [+60, -2] They have a lot of luxury sponsors so they'll just pimp out all their artists..
10. [+37, -2] Isn't this bankruptcy??..
11. [+31, -2] Time to close the pharmacy's doors!!
12. [+29, -1] Big Bang are the ones that fed them though..

 

[Darkyoda47]

So lemme get this straight. The government effectively invested 5.5% of the public's pension plan into an entertainment company fully knowing it is a high risk investment? What the actual fuck? That means, if YG goes bankrupt, 5.5% of the South Korean public's pension plan goes down the drain... Motherfucker.

 

[Darkyoda47]

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[Mayday]

I don't even know what I want to happen anymore. Every possible situation is terrible.

 

[Darkyoda47]

I don't even know what I want to happen anymore. Every possible situation is terrible.

Like I said, Motherfucker....

 

[potato]

So lemme get this straight. The government effectively invested 5.5% of the public's pension plan into an entertainment company fully knowing it is a high risk investment? What the actual fuck? That means, if YG goes bankrupt, 5.5% of the South Korean public's pension plan goes down the drain... Motherfucker.

I feel like something was going on behind the scenes to make this happen. I don't think any government would be stupid enough to do such a thing unless corruption was involved. All those poor people who work so hard though... I hate the fact that the Korean public have to suffer for something that they had no control against.

 

[Mangoey]

good lord, what was the government even thinking when they invested in them???

 

[Hajima]

So lemme get this straight. The government effectively invested 5.5% of the public's pension plan into an entertainment company fully knowing it is a high risk investment? What the actual fuck? That means, if YG goes bankrupt, 5.5% of the South Korean public's pension plan goes down the drain... Motherfucker.

That's why a lot of shady people from the government are trying to help him get away with it ... It's not only the police The whole government is currpet.. They could give a damn about their country all they care about is not losing their money...

 

[Darkyoda47]

I feel like something was going on behind the scenes to make this happen. I don't think any government would be stupid enough to do such a thing unless corruption was involved. All those poor people who work so hard though... I hate the fact that the Korean public have to suffer for something that they had no control against.

good lord, what was the government even thinking when they invested in them???

Apparently, it's not just YG, SM has 4.5% of the public's pension plan invested into them.
I mean, it's like this guys, the investments are high risk but they also have high returns. In SM's case, the government is probably getting a lot back. However, the fact that they're high risk should be enough reason for any government to reject the investment.

 

[Darkyoda47]

That's why a lot of shady people from the government are trying to help him get away with it ... The whole government is currpet

I mean for good reason though? Imagine they don't bail out YG? Like, that's probably millions of dollars down the drain. This is people's lives we're playing with right now.

 

[yeji]

this is insane omg

 

[potato]

Apparently, it's not just YG, SM has 4.5% of the public's pension plan invested into them.
I mean, it's like this guys, the investments are high risk but they also have high returns. In SM's case, the government is probably getting a lot back. However, the fact that they're high risk should be enough reason for any government to reject the investment.

What was the government thinking

Maybe it's because the companies are so influential they never predicted that one of them would go down in such a way? Both companies have gone through a number of scandals (before this whole fiasco) but it didn't seem to affect the pension then so I guess the government decided that it would be okay? Or maybe SM did some dirty business in this area too? I'm trying to think of a reasonable explanation and these are the only ones I can think of atm.

 

[Poetry]

Public pension involvement is not new news. I've known about it for months. At least since April, probably before.

 

[blueberries]

Some of the business talk just goes over my head But it doesn't look good for YG at all, kinda weird for them to get investement like that though, it jsut sounds so risky. I guess they didn't prepare for stock fall at all.Though maybe I shouldn't be surprised, it seems like YGE has been living on edge a while now.

 

[Darkyoda47]

What was the government thinking

Maybe it's because the companies are so influential they never predicted that one of them would go down in such a way? Both companies have gone through a number of scandals (before this whole fiasco) but it didn't seem to affect the pension then so I guess the government decided that it would be okay? Or maybe SM did some dirty business in this area too? I'm trying to think of a reasonable explanation and these are the only ones I can think of atm.

I don't know man but this is crazy. I can't imagine what's going through the head of the Korean public. They must be so bad. That's their hard earn money...

 

[Darkyoda47]

Public pension involvement is not new news. I've known about it for months. At least since April, probably before.

It's news to me. I mean I know my government doesn't invest in entertainment companies.

 

[Poetry]

It's gonna be similar to the Wall St. bail out except more scandalous due to sex, violence, and drugs being explicitly involved. "Too big to fail."

 

[blueberries]

It's news to me. I mean I know my government doesn't invest in entertainment companies.

Kpop is one of major exports of Korea so it makes some sense. Like for comparison Poland has been pouring money on CD Projekt RED ages now for making Witcher series ^^; But buying stocks, mm it is pretty risky and sounds fishy, i think usual way goverment invests sth is developmental funds.

 

[Poetry]

YG Investors Have Lost 170 Million - K-Pop Source — Keeping the K-Pop Forum Spirit Alive

Investors in YG Entertainment including the National Pension Service have suffered losses of around 200 billion won ($169.2 million) over the past six months, according to Korea Exchange data. Broken down, the NPS lost around 20 billion won, while some 20,000 minority shareholders lost about...

www.kpopsource.com

It's news to me. I mean I know my government doesn't invest in entertainment companies.

I alluded to it in at least one of my posts. Idk if it was here or on another forum though. I use the same username throughout.

I did a search. It wasn't on this forum. It was probably akp or OH.


Edit: I remember how I personally found out the national pension was an investor. It was a while ago. A news story mentioned the offspring of some Naver bigwig being involved in Burning Sun, so I looked up YGE's investors to see why YGE would want to protect Seungri and BS if YGE was not directly involved in BS.

 

[VillageIdiot]

So lemme get this straight. The government effectively invested 5.5% of the public's pension plan into an entertainment company fully knowing it is a high risk investment? What the actual fuck? That means, if YG goes bankrupt, 5.5% of the South Korean public's pension plan goes down the drain... Motherfucker.

SM has 4.5% of the public's pension plan invested into them.

This explains so much