In the following months, Choi Jin-ho (founder and co-CEO) resigned and 30% of the remaining shares were sold for 3.51 billion won.

As a result, it became a wholly owned subsidiary of Kakao M.[3] Fave Entertainment was originally founded in 2012 as LOEN Tree, to manage LOEN Entertainment's recording artists.

It was spun-off as a separate subsidiary label in 2016 and renamed Fave Entertainment.

[4][5] Artists who were transferred to Fave Entertainment included Fiestar, History, IU and Sunny Hill.

[16] On February 7, 2022, IST Entertainment announced the debut of a new boy group in the second half of the year through a reality competition show, The Origin – A, B, Or What?.