Yang Minsuk, CEO of YG Entertainment, resigned from The Black Label’s board, ahead of IPO push.
YG Entertainment is still a major shareholder with 14.55% stake, after Teddy Park (42%) and Saehan Startup Investment (28%)
An industry official said, “CEO Yang Minsuk’s resignation from the board is a strong signal that THE BLACK LABEL is no longer inside YG Entertainment’s management system,” and added, “Based on independent board decision-making, aggressive investment for maximizing IPO valuation will continue.”
THE BLACK LABEL will potentially become the first former Kpop subsidiary to go public independently.
After its establishment, for the first time in 10 years, no executives from YG Entertainment are on THE BLACK LABEL’s board of directors.
Analysts see this as THE BLACK LABEL beginning to restructure its governance ahead of an Initial Public Offering (IPO), removing the influence of its former parent company and moving toward a fully independent path.
Kpop fans often read business moves like personal fanwars; who hates who, who got mistreated, who left the tribe in anger. Most of the time, it’s simply corporate strategy.
THE BLACK LABEL (TBL) removing YG Entertainment (YGE) executives from its board does not automatically mean there is conflict.
What it strongly suggests is that TBL is preparing for an IPO. If it happens, it would be one of the first former K-pop sub-labels to go public on its own.
Why this move matters for an Initial Public Offering (IPO), when a private company opens itself to public investors.
1. Who’s in control of THE BLACK LABEL
Investors want clarity on who makes the final decisions. If YGE personnel still sit on the board, it creates doubt over who really controls THE BLACK LABEL.
2. Independent companies are worth more
A company with its own identity, artists, and future profit potential is usually valued higher than one still seen as operating under another company as a sub-label. That perception can limit how much investors are willing to pay.
3. Less conflict-of-interest risk
Public investors watch closely for business deals between connected companies. If TBL looks too tied to YGE, investors may question whether decisions are truly independent.
4. Global investors care about governance
THE BLACK LABEL is reportedly appealing to large global investors like US-based BlackRock, so board independence and governance structure matter heavily. Good governance builds investor confidence.
Before asking the public for money, a company has to show that it belongs to itself, not that it is still an extension of its former parent. If the former parent remains on the board, investors may question whether decisions are being made fairly for all shareholders, or whether the parent company is benefiting from the same pool of invested money.
To appeal to the public market, THE BLACK LABEL has to show investors that it is independent and that all shareholders are treated fairly.
THE BLACK LABEL Timeline (2016 → Present)
2016 — Founded under YG Entertainment
Founded by TEDDY as a YGE sub-label.
Focus: production for YGE artists and selected projects.
Early board heavily tied to YGE.
Hwang Bo Kyeong (then YGE executive) involved in board leadership.
2016–2019 — YGE-controlled subsidiary
YGE held 45% + 1 share.
Officially treated as a subsidiary.
YGE had both ownership and board influence.
Legally and structurally a YGE subsidiary
2020 — Start of independence
Reclassified from subsidiary to affiliate.
Started expanding beyond producing for YGE artists.
Began artist recruitment and independent management.
2021 — Outside capital enters;
External investments begin.
YGE ownership starts diluting.
Yang Minsuk joins TBL board as internal director.
Ownership diversifies, still under YGE governance.
2022 — IPO-type executive hiring starts
Jeong Kyung In joins as CEO.
Known for leading Pearl Abyss’s public listing.
Yang Minsuk shifts from internal to non-executive board role.
Operational leadership shifts toward public-market experience.
2023 — YGE stake drops
YGE ownership falls to 27.6%.
Less ownership, less control.
2024–2025 — IPO infrastructure builds
CFO Cho Seok Woo joins (also ex-Pearl Abyss).
Investment discussions with BlackRock and Tencent.
YGE stake falls further to 14.55%.
Capital structure becoming more global.
2025/2026 — Final board separation
Yang Minsuk steps down.
No more YGE executives on TBL board.
Final governance separation.
