YG Entertainment Announces They Will Repay ₩67 Billion KRW To Louis Vuitton

They have paid it all back.

YG Entertainment has announced today (October 10) that they will repay ₩67.4 billion KRW ($56,490,636 USD) to Great World Music Investments and Louis Vuitton.

The company made a short statement regarding the required repayment.

This is due to a scheduled repayment of redeemable convertible preference shares that were issued on October 15, 2014.

— YG Entertainment

Great World Music Investments is the investment company for LVMH (LVMH Moët Hennessy, also known as Louis Vuitton SE). They invested ₩61.05 billion KRW ($51,599,154 USD) into YG Entertainment in October 2014.

At the time of the investment, LVMH had it written into the agreement that at the end of 5 years, they would be able to convert their redeemable convertible preference shares into regular shares at the price point of ₩43,574 KRW ($36.83 USD) per share, or they could receive their entire ₩61.05 billion KRW investment back, along with 2% interest for a total of ₩67.4 billion KRW ($56,490,636 USD).

Due to a myriad of scandals surrounding YG Entertainment, from the Burning Sun scandal to Yang Hyun Suk’s alleged gambling charges, YG Entertainment’s stock value has significantly plunged. Just weeks before the scandal broke out, YG Entertainment’s stock was valued at ₩47,500 KRW, which meant that if that value held out today, LVMH would be able to receive a profit on their investment.

Source: SBS