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YG, a personal friend of Psy, offered to help when Psy struggled financially.
Trainee G-Dragon and Taeyang had been with the company since they were just thirteen years old. However, Wheesung felt neglected and left the company in 2006. Big Bang debuted as the youngest group at the time (average age of 17) with lukewarm reception.
It took convincing from his wife to revitalize his career and ultimately create the phenomenon known as the "Gangnam Style".
Tablo at the time was suffering from depression, as over 200,000 Korean netizens in an online community called Tajinyo accused him of forging his identity and Stanford academic degree.
His first meeting with YG representative was set up by his wife, then YG actress Kang Hye-jung.
CEO Yang Hyun Suk made his television comeback after ten years as a judge on the reality singing competition K-Pop Star in 2012, and signed the runner up of the show, Lee Hi, to her own record deal.
However, a dating scandal in 2004 with then labelmate model/actress Park Han-byul caused his career to plummet, which led to his 4 year hiatus in Korea and ultimately his US debut without much success.
It was revealed many years later that YG Entertainment had many secret relationships amongst its artists.
The company filed its first annual report in 2012 with a net gross of over 50%.
They Became one of the top three or big three entertainment agency in South Korea.
The label expanded by signing already established acts such as Psy, a renowned rap artist; and Tablo, a lyrical savant from the group Epik High.
In Korea, both were known to be rebellious independent acts and dealt with large controversies.
During their early years, the company put out groups such as Keep Six, Jinusean, and most notably 1TYM (pronounced "One Time"), who was credited with bringing hip hop to the Korean mainstream.