YG’s Exit from Actor Management: Why Did It Happen and Where Did Their Stars Go?
For years, YG Entertainment was known not just as a powerhouse in the K-pop industry but also as a rising force in actor management. With an impressive lineup of talented actors under its wing, the company sought to expand beyond music and make a significant mark in the world of K-dramas and films. However, in a surprising move, YG officially shut down its actor management division, leaving many to wonder: Why did YG abandon its ambitions in the acting industry, and where did its actors go?
YG’s Attempt at Actor Management
While YG Entertainment is best known for producing global K-pop superstars like BIGBANG, BLACKPINK, and WINNER, the company also had a substantial roster of actors. Over the years, YG recruited some of the most talented names in the industry, including Kang Dong-won, Cha Seung-won, Kim Hee-ae, Lee Sung-kyung, and Nam Joo-hyuk. The agency managed these actors through its subsidiary, YG Stage, which was established in 2014 to compete with top-tier actor-focused agencies like BH Entertainment and Artist Company.
YG’s ambition was clear: they wanted to leverage their global influence in entertainment to dominate both K-pop and K-drama markets. They invested in film and television productions, securing major roles for their actors in hit dramas and movies. However, despite these efforts, YG never quite achieved the same dominance in acting as it did in music.
The Downfall: Why YG Abandoned the Acting Business
1. Scandals and Reputation Damage
YG Entertainment’s reputation took a major hit due to multiple controversies over the past few years. The Burning Sun scandal in 2019, which involved former BIGBANG member Seungri, severely damaged public trust in the company. Additionally, allegations of illegal activities and mismanagement plagued YG, causing some actors to distance themselves from the agency. Unlike idol groups who are tightly bound by contracts, actors had more flexibility in seeking new representation, and many saw an opportunity to move to cleaner, more specialized firms.
2. Financial Struggles and Restructuring
Managing actors requires a different business model than managing K-pop idols. While idols generate revenue through album sales, concerts, and merchandise, actors rely primarily on drama and movie fees, which are less predictable and slower in return. YG’s primary strength was in music, and its actor management division never became a major revenue driver. As a result, YG Entertainment decided to focus on its core business—music production and idol management—rather than spreading itself too thin.
3. Intense Competition from Actor-Focused Agencies
Unlike SM, JYP, or HYBE, which also attempted to manage actors, YG faced intense competition from industry giants solely dedicated to actor representation. Companies like BH Entertainment (home to Lee Byung-hun and Han Hyo-joo), Artist Company (co-founded by Jung Woo-sung and Lee Jung-jae), and Management SOOP (representing Gong Yoo and Suzy) were far better equipped to handle actors’ careers. As a result, many of YG’s high-profile actors chose to leave for agencies with stronger connections in the acting industry.
Where Did the Former YG Actors Go?
As YG slowly dismantled its actor management division, several of its top stars moved on to new homes:
- Kang Dong-won – Left YG in 2022 and has been focusing on independent projects.
- Lee Sung-kyung – Joined YG affiliate YG Entertainment’s subsidiary but later signed with Kang Daniel’s KONNECT Entertainment in a surprising move.
- Nam Joo-hyuk – Moved to Management SOOP, joining a powerhouse of actors like Gong Yoo and Suzy.
- Kim Hee-ae – Signed with Yoon & Company, an agency specializing in top-tier actresses.
- Cha Seung-won – Left YG and joined A-Man Project, an agency founded to focus on his career exclusively.
What’s Next for YG Entertainment?
With the official closure of its actor management division, YG has returned to its roots: idol management and music production. The agency remains strong with its current artist lineup, including BLACKPINK, TREASURE, and BABYMONSTER. While YG’s brief foray into actor management didn’t pan out as planned, its focus on K-pop continues to thrive.
Would YG ever attempt to return to the actor management business in the future? For now, it seems unlikely. The company appears to have learned a valuable lesson: sticking to what it does best—building K-pop superstars.
Final Thoughts
YG’s departure from the acting industry marks the end of an ambitious yet ultimately unsuccessful experiment. The agency’s struggles with controversy, financial priorities, and competition from specialized actor agencies made it clear that managing actors was not their strong suit. While former YG actors have successfully found new homes, YG itself is doubling down on its strength—music and idol production.
Would you like to see YG re-enter the drama industry? Or is it better for them to focus purely on K-pop? Share your thoughts in the comments!
