On October 10, YG Entertainment officially announced that the company will be returning 64.7 billion won (approximately $54.1 million) to Great World Music Investment.

Great Music World Investment is a subsidiary of LVMH Moët Hennessy – Louis Vuitton SE (hereafter LVMH). In October 2014, LVMH invested money in redeemable convertible preference shares (RCPS) of YG Entertainment. At the time of investment, LVMH set the option of converting into common stock at 43,574 won (approximately $36.46) per share or a repayment of 67 billion won (approximately $56 million), which includes an annual interest of two percent, after five years.

If YG’s stocks were priced higher than 43,574 won per share, LVMH would have profited by converting their shares into common stock. However, YG’s stock prices have continued to fall due to recent controversies surrounding the company. The agency’s stocks are currently priced at 23,550 won (approximately $19.73), leading LVMH to choose the latter option.

Regarding the payment, YG Entertainment explained, “It was made following the maturity date of the RCPS that was issued on October 15, 2014.”

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