In a strategic move within the entertainment industry, THE BLACK LABEL is making a surprising change. A new report reveals that the prominent music label and production company is set to relocate its main office to Hannam W Office, situated in Hannam-dong, Yongsan-gu, Seoul. This transition, scheduled for the first half of 2024 and potentially as early as next month, marks a significant shift from its longstanding headquarters at the YG Entertainment office in Hapjeong-dong, where it has been based since its establishment in 2016.
Why Is THE BLACK LABEL Moving From YG Entertainment?
The decision to relocate gained approval during a board meeting held by THE BLACK LABEL in June 2023, signifying a pivotal moment in the company’s evolution. Industry insiders perceive this move as a strategic step towards independence, indicating a potential separation from YG Entertainment.
Initially founded by Park Hong Joon, widely known as Teddy Park, the label started as an external record production company collaborating primarily with YG artists. However, recent developments highlight the label’s inclination to diversify its activities, evidenced by the recruitment of various artists and the initiation of auditions to unearth new talents.
The Black Label has begun their moves to become an independent label away from YG Entertainment as they relocates their headquarters to Hannam-dong.
"In reality, the connection with YG Entertainment is decreasing. At the beginning of its establishment , YG Entertainment was the… pic.twitter.com/oxdpyk8M3T
— KLIFE (@8KLIFE) January 12, 2024
The ownership structure further illuminates this transition. In the early stages, YG Entertainment was THE BLACK LABEL’s major shareholder, but the current scenario reflects a reduced stake of approximately 21%. Concurrently, SAEHAN Venture Capital, an initial investor, has been steadily increasing its ownership since 2021. Lee Jung Hoo, the CEO of SAEHAN and an external director at THE BLACK LABEL, plays a pivotal role in steering the label towards independence.
The relocation aligns with THE BLACK LABEL’s broader vision of expansion. Following the move, the company is anticipated to seek additional investments from venture capitalists as part of its strategic plan to recruit new artists and extend its business ventures. Currently, the company boasts a roster of diverse talents, including Zion.T, Jeon So Mi, Taeyang, Park Bo Gum, Lee Jong Won, and more.
🖤 HAPPY BIRTHDAY LEE JONG WON 🖤#LEEJONGWON #이종원#더블랙레이블 #THEBLACKLABEL pic.twitter.com/TgPTdeMha8
— THEBLACKLABEL (@THEBLACKLABEL) December 30, 2023
This significant shift in office location not only underscores the label’s commitment to growth and autonomy but also signals a new chapter in THE BLACK LABEL’s journey within the ever-evolving landscape of the Korean entertainment industry. As it positions itself for further expansion and innovation, the relocation becomes a symbolic and strategic move, reflecting the dynamic nature of the music business.