Psy agency eyes China presence

YG Entertainment, the record label and agency that represents South Korean pop sensation Psy, plans to expand into the China market by setting up a firm on the mainland this year.

"We now have more confidence after Psy's global phenomenon and Big Bang's world tour [last year]. So probably we can put more resources and invest more into the Greater China market, which we believe will be the next big market next to Japan," said YG chief operating officer Simon Choi Sung-jun.

Last year, the music video to Psy's single went viral to become the most-viewed video on YouTube. It has racked up more than 1.58 billion views. The song was the third-best selling digital single in the world last year, International Federation of the Phonographic Industry figures show.

Psy's label mate Big Bang - a five-member boy band - made a world tour to 24 cities including Hong Kong last year, with a total estimated audience of 800,000, according to Billboard.

Benefiting from its artists' success and the popularity of K-pop, YG reported a 36 per cent year-on-year increase in revenue to 106.55 billion won (HK$757 million) last year. Net income at the South Korean firm, which is listed on the Kosdaq electronic stock market, rose 45 per cent to 18.76 billion won.

Thanks to social media websites such as Facebook and YouTube, Choi said the firm was able to expand its reach to audiences throughout the world.

Outside Korea, Choi said the company previously focused more on the Japan market, but the overwhelming response to Big Bang's concerts in Guangzhou and Shanghai last year boosted its confidence in expanding to the Chinese market.