LVMH Moet Hennessy Louis Vuitton, the parent company of luxury fashion brands Louis Vuitton, Marc Jacobs and more, is planning to invest more than 100 billion won ($97.2 million) in local entertainment firm YG Entertainment.

The amount is about 17 percent of YG’s market value, which is estimated to be 600 billion won.

“YG is in high demand as K-pop stars have huge influence over the Chinese market, which is considered a gold mine for luxury fashion companies,” a Hong Kong-based investment bank was quoted as saying. “Other financial firms are expressing their interest in YG.”

YG is one of Korea’s most influential showbiz agencies, representing K-pop stars such as Psy, Big Bang, 2NE1 and others.

By Um Yoon-sun (uys@heraldcorp.com)