YG Entertainment to sell controlling stake in Studio Plex

YG Entertainment, the K-pop agency behind Blackpink and BabyMonster, will divest its controlling stake in its production studio, Studio Plex, to prioritize its core music business.

The sell-off of a 60 percent stake will be completed within this year, according to the company’s electronic disclosure released last month.

Local media outlets reported on Tuesday that the company is attempting to sell a portion of Studio Plex’s shares to a production company, but a YG Entertainment spokesperson declined to confirm the reports.

Studio Plex was founded in 2017 as part of a business portfolio expansion by YG, which holds a 99.86 percent stake in the studio. With the intended divestment, the entertainment agency will retain the remaining 39.86 percent stake while transferring management rights to the buyer.

Studio Plex was behind the drama series “A Cautionary Note” (2018), “Mr. Queen” (2020-21) and “Joseon Exorcist” (2021), the latter two of which faced severe backlash for historical inaccuracy.

For “Joseon Exorcist,” public criticism became so strong to the point that the show was cancelled after airing two episodes.

“We are committed to enhancing profitability through a sound and competitive business structure focused on our core business,” a YG spokesperson said. “We expect that this move will improve Studio Plex’s production environment and secure financial stability.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]