In March 1996, Yang Hyun-suk, a former member of the first-generation K-pop group Seo Taiji and Boys, founded YG Entertainment under the name Hyun Planning (Korean: 현기획).

[13] The agency found success in both Korea and Japan with its first "idol" singer Seven in 2003,[14] who became the company's first artist to attempt to cross over into the US music scene, though his US debut failed to gain momentum.

Despite an initial lukewarm reception, the group's breakthrough the following year and their consistent popularity have made them one of the biggest and most bankable boy bands in the world.

[29][30] The song was credited as the main reason for YG's share prices increasing by more than 60 per cent,[31] with the record label subsequently filing its first annual report in 2012 with profits of over 50%[32] after going public on the KOSDAQ the year before.

[7] That same year, the label signed rapper and producer Tablo, leader of the hip hop group Epik High, relaunching his career after a musical hiatus following his Stanford controversy.

[34] Yang's increased involvement on competitive reality television series led to several record deals with contestants, starting with K-pop Star's first season runner-up Lee Hi.

[36][37] The reality program Win: Who is Next was later launched by YG, in which two teams of male trainees competed against each other for the chance to sign a contract with the label to debut as the company's next boy band.

[41][42][43][44] French luxury giant LVMH's private equity arm, L Capital Asia, later announced that it would be investing up to US$80 million in YG.

[49] In that year, the company also saw the creation of two sub-labels, the first led by Tablo[50] and the second headed by YG producers Teddy Park of 1TYM and Kush of Stony Skunk.

[52] In April 2016, Gong Minji, the youngest member of 2NE1 announced that she had left 2NE1, YG Entertainment stated that the group would continue as a trio.

[53][54] In November 2016, YG announced that CL and Dara had renewed their contracts as solo artists, indicating Park Bom's departure from the agency and the disbandment of 2NE1.

[55][56] On January 21, 2017, 2NE1 appeared as a trio and released "Goodbye" as a farewell song that CL wrote when she heard the news of Minji's departure.

[57] Sixteen years after the group's disbandment, first-generation K-pop boy band Sechs Kies signed a contract with YG in May 2016 to relaunch their career.

[76] Epik High member Tablo announced that his hip-hop group had terminated its contract with YG after six years of working together in October 2018.

Likewise, his younger brother, Yang Min Suk, relinquished his position as CEO of YG Entertainment as a form of accountability.

[91] At the end of December 2019, solo singer Lee Hi announced that YG was no longer her agency, not long after that she released a new album with AOMG.

[113] In October 2024, 2NE1 officially kicked off their much-anticipated 15th anniversary reunion tour, titled "Welcome Back", starting with a concert in Seoul at the Olympic Hall.

GMM Grammy is one of the longest-serving mainstream entertainment companies in Thailand having a number of music labels along with TV and film productions.

[124] Since the partnership, KPlus models have appeared in YG recording artists' music videos, as well as YG-owned brands' advertisement campaigns.

[126] YG first collaborated with Californian concert promotion company Live Nation to produce BigBang's Alive Galaxy Tour (2012).

General Manager of Live Nation Asia, Mats Brandt, said in an interview that the company considered BigBang to have the most potential to become a "global artist".

[127] Asiana Airlines signed a deal with YG in January 2013, providing transportation for its personnel to and from domestic and international destinations in return for advertising.

[133] The label currently houses artists: Meovv, Jeon Somi, Taeyang, Rosé, Bryan Chase, Løren, Vince, and R.Tee.

[134] Announced in March 2015, the label was set up by Yang Hyun-suk under the YG Entertainment umbrella as part of a long-term goal to reach out to the Korean indie and alternative scene.

[135] The company had fostered artists Millic, offonoff, Punchnello, Code Kunst, Way Ched, The Black Skirts, Idiotape, and Incredivle ever since.

[137] The label was registered as a corporate subsidiary in June and marked another chapter in the collaboration between Psy and long-time friend Yang Hyun-suk, as it was revealed that the YG CEO had implicitly promised the creation of a sub-label when Psy had signed on to the company in 2010 amidst personal difficulties, having been encouraged by his wife to work with the YG founder.

Yang Hyun-suk announced, in May 2018, that a subsidiary company called YGX Entertainment would merge with Seungri's DJ label NHR.

[139] In 2020, the label was converted to a full-fledged dance group and academy with all of its actors, recording artists, and producers transferred to YG Entertainment.

[142] In 2013, Yang Hyun-suk made headlines when he donated all of the dividends he received as a shareholder of YG to help young children needing surgery.

[144] In March 2022, YG donated ₩500 million to Hope Bridge Disaster Relief Association to help residents affected by wildfires in Uljin, Gyeongbuk, Samcheok, and Gangwon.