A fund backed by French luxury giant LVMH plans to make a rare $60 million investment in a South Korean entertainment agency that counts "Gangnam Style" star Psy among its clients, the agency said Wednesday.
Under the deal with YG Entertainment, L Capital Asia, the investment fund arm of the LVMH Group -- known for its luxury brand Louis Vuitton -- will buy YG's new preferred shares worth 61 billion won ($59.6 million), YG said in a regulatory filing.
The Seoul-based YG has under its umbrella top names in South Korea's thriving K-pop industry -- including Psy, G-Dragon, the boyband BigBang and the girlband 2NE1, all of whom have massive followings across Asia.
The company, listed on a Seoul stock market, was valued at 690.8 billion won Wednesday.
The deal is to be finalised in a shareholders' meeting on August 27, YG said.
The fund is also in separate talks to acquire additional shares worth $20 million in YG, it added.
L Capital Asia was set up in 2009 to capitalise on "high consumption growth in Asia," by investing on Asian firms in luxury and other lifestyle industries, the firm said on its website.
The fund most recently raised funds worth $950 million in August 2013, it said.
South Korea's K-pop industry has taken Asia by storm for the past decade with its sleek production and dance moves infused with military precision.
It has in recent years garnered increasing number of fans beyond Asia, particularly following the global success of Gangnam Style -- the most popular video of all time on YouTube, with more than two billion views.