[Edaily Reporter YUN GI BACK ] YG PLUS(037270)is partnering with FNC ENTERTAINMENT Co., Ltd.(173940)(FNC) to expand its influence in the album and digital music distribution business. Going beyond a simple distribution agreement, the companies are broadening their scope of cooperation to include merchandise planning (MD) and concert operations, accelerating efforts to diversify revenue streams using K-pop intellectual property (IP).

YG Plus announced on the 22nd that it has established a strategic investor (SI) relationship with FNC and, starting on the 1st of this month, will exclusively handle the distribution of new and back catalog albums and digital tracks by FNC-affiliated artists.
Under this agreement, YG Plus will distribute the music catalogs of FNC-affiliated artists, including FT Island, CNBLUE, N.Flying, P1Harmony, AMPERS&ONE, and SF9. By securing not only new albums but also previously released works, the company is expected to expand both its distribution volume and the scale of digital tracks it handles.
YG Plus already holds a significant market share in the domestic album distribution market. According to Circle Chart, the company ranked first in the industry with a 44.5% share of album distribution in the first half of this year and second with a 25.4% share of digital music distribution. With the addition of FNC’s music catalog, YG Plus is expected to further strengthen its competitiveness in the digital music distribution market as well.
A key aspect of this partnership is the expansion of business areas. The two companies have agreed to collaborate not only on physical album and digital music distribution but also on the production and sale of artist merchandise, as well as domestic and international concert operations. The plan is to leverage the artist IP and fan engagement secured through music distribution to drive sales of merchandise and concert business.
This demonstrates that the business model of K-pop distributors is evolving. While the traditional model centered on selling physical albums and digital tracks to earn distribution commissions, the scope has recently expanded to generate additional revenue from various music-based ventures, such as merchandise and live performances.
YG Plus also has a strategy to expand its K-pop IP business by combining its global distribution network with its merchandising capabilities. However, the actual investment amount and the specific revenue-sharing structure for each business segment have not been disclosed.
A YG Plus representative stated, “We are honored to partner with FNC Entertainment as strategic partners,” adding, “Building on our distribution capabilities for physical albums and digital tracks, we will expand our collaboration into various business areas, including merchandise and concerts.”