1996–2005: Hip-hop roots, early success and first generation K-pop

In March 1996, Yang Hyun-suk, a former member of the first-generation K-pop group Seo Taiji and
Boys, founded YG Entertainment along with his younger brother Yang Min-suk. [5][7] The company's
first artist was the hip-hop trio Keep Six. When they failed to attract popularity, Yang turned his focus
to the duo Jinusean and in 1998 to the debut of 1TYM. Both were successful artists that Yang
credits for bringing YG and the hip hop genre into mainstream Korean music. [5]
In 1999, YG's artists released a collaborative album under the name YG Family. The label followed
with releases from artists such as Perry, Swi.T, Big Mama, Lexy, Gummy and Wheesung. It also
established the "YG Underground" label, which housed 45RPM and Stony Skunk. In 2001, a second
YG Family album was released. Among others, it featured the 13-year-old G-Dragon, who was then
a trainee.[8]
The agency found success in both Korea and Japan with its first "idol" singer Seven in 2003,[9] who
became the company's first artist to attempt to cross over into the US music scene, though his US
debut failed to gain momentum.[10]

2006–2011: Mainstream breakthrough

Big Bang is YG's most successful artist and was responsible for more than half of YG's albums sold in Korea
from 2014 to 2017.[11]

Following Se7en's success, YG formed its first idol group Big Bang in 2006. Despite an initial
lukewarm reception, the group's breakthrough the following year and their consistent popularity have
made them one of the biggest and most bankable boy bands in the world. [12] This was followed by
YG's first successful girl group 2NE1 in 2009,[13] who, prior to their split in 2016, were considered one
of the most successful and popular girl groups in South Korea. [14][15] Similarly to Seven, both groups
conducted successful careers in Japan.[16][17][18]

2NE1 debuted in 2009 as the first major girl group under YG and became the first group to achieve nine
number-one songs on the Gaon Digital Chart.
In 2010, YG made a highly publicized move into a new building, while the old headquarters became
a training facility.[19][20] In the same year, the company unsuccessfully applied for listing on the stock
exchange; it was suspected that this was because the company had too few active music groups
and an unstable cash flow, despite an increase in earnings in 2009. [21] Later that year, the label
signed established artist Psy.[22]

2012–2015: International recognition and business expansion

2012 brought YG international recognition when Psy's "Gangnam Style" gained worldwide popularity
as a viral video. On August 21, it charted at number one on the iTunes Music Video Charts. This feat
was a first for a South Korean artist.[23] By November 24, "Gangnam Style" had become the most
viewed video in YouTube history, and the first video to surpass a billion views.[24][25] The song was
credited as the main reason for YG's share prices increasing by more than 60 per cent, [26] with the
record label subsequently filing its first annual report in 2012 with profits of over 50% [27] after going
public on the KOSDAQ the year before.[6]
That same year, the label signed rapper and producer Tablo, leader of the hip hop group Epik High,
relaunching his career after a musical hiatus following his Stanford controversy.[28] Tablo's band Epik
High later transitioned into the record label following his success. [29]
Yang's increased involvement on competitive reality television series led to several record deals with
contestants, starting with K-pop Star’s first season runner-up Lee Hi.[30] Other participants on the
show were signed as potential members of the label's future boy groups. On the second season of
the show, both the winners, sibling duo Akdong Musician as well as runner-up Bang Ye-dam, signed
under the agency.[31][32] Additionally, the reality program Win: Who is Next was later launched by YG,
in which two teams of male trainees competed against each other for the chance to sign a contract
with the label to debut as the company's next boy band. The conclusion of the reality series saw the
formation of Winner.[33]

Winner successfully debuted in 2014 and became the fastest K-Pop group to win #1 at music shows. They
grabbed their first music show win just six days into their debut.

In 2014, YG acquired T Entertainment's staff and actors including Cha Seung-won, Im Ye-jin,

and Jang Hyun-sung.[34] Additionally, through the acquisition of modelling agency K-Plus, it expanded
its acting division through the acting debuts of models Lee Sung-kyung and Nam Joo-hyuk.[35] YG
also signed a contract with actress Choi Ji-woo.[36][37][38][39] French luxury giant LVMH's private equity
arm, L Capital Asia, later announced that it would be investing up to US$80 million in YG.
Headquartered in Singapore, L Capital Asia would become the second-largest investor in YG with an
11.5% stake, second only to Yang Hyun-suk's 28%. [40] In 2014 YG also expanded into the beauty
industry with the creation of its cosmetics brand Moonshot. [41][42]
In 2015, YG invested nearly US$100 million in a new Gyeonggi-do-based industrial complex which
was slated to be complete by December 2018.[43] Real estate in Seoul worth ₩16 billion (US$14
million) was also purchased for the purpose of expanding their headquarters. [44] In that year, the
company also saw the creation of two sub-labels, the first led by Tablo [45] and the second headed by
YG producers Teddy Park of 1TYM and Kush of Stony Skunk.[46] Additionally, the members of the
losing team from the reality series WIN: Who is Next regrouped and debuted as iKon, along with a
new member.[47]

iKon debuted in 2015. Their 2018 single, "Love Scenario", broke several records at the time; including the
longest run as the top-charting song, the most hours of 'perfect all-kills,' and the first song to be certified
Platinum by the KCMA.