The French luxury goods giant, LVMH (Moët Hennessy Louis Vuitton) has decided on its investment of 61.1 billion won (approximately USD 59.7 million) into YG Entertainment, with a possibility of increasing up to 80 billion won (approximately USD 80 million) that could help the entertainment company’s expansion in the fashion and cosmetics industry.

On August 20, YG Entertainment announced that it will sell a total of 61.1 billion won (USD 59.7 million) worth of new shares to LVMH’s Asian trading arm, L Capital Asia.

L Capital Asia is also looking into buying 20.4 billion won (approximately USD 20 million) worth of additional shares from YG Entertainment’s CEO and founder, Yang Hyun Suk. Further details regarding the investment deal will be announced after it is finalized in the shareholders’ meeting that will be held on August 27.

With the 1.25 million convertible preferred shares priced at 44,900 won each that can be converted into common stocks after a year coupled with the additional shares that it is looking into acquiring, LVMH will become the second largest shareholder of YG Entertainment.

According to YG Entertainment’s regulatory filing on August 20, the stake sale is aimed for the company’s long-term development and entry into new business.

Speculations regarding YG Entertainment’s foray into the fashion and cosmetics industry are increasing as YG Entertainment and LVMH are said to be in talks for a strategic partnership according to Eai-Jin Song of YG Entertainment’s investor relations team in a report by Reuters.

According to earlier reports, YG Entertainment is set to launch fashion brand “NONA9ON” by next month. The brand, which is in collaboration with Cheil Industries of Samsung Group’s fashion division, will target the trendy youth and will feature YG Entertainment’s fashionistas BIGBANG’s G-Dragon and 2NE1’s CL as models.

The company has also expanded its business into the cosmetics industry with its collaboration with China’s Guangzhou Huanya Cosmetics Technology and Korea’s COSON last year.