[THE INVESTOR] Keyeast, one of the nation’s largest entertainment agencies owned by actor Bae Yong-joon, has decided to drop its planned launch of a new cosmetics brand for teenagers, Chosun Biz reported on March 27.

The report said the company has given up the plans due to China’s retaliatory measures against Korean firms following the THAAD deployment and saturated market overall. 

Keyeast CEO and actor Bae Yong-joon

Keyeast had reportedly recruited a former Amorepacific executive to set up a new business division in order to launch the new brand.

The company has also been reducing its stake in The OOZOO, a mask pack manufacturer, where the company became the largest shareholder with 33.3 percent stake in 2015.

Keyeast posted an operating loss of 6.88 billion won (US$6.18 million) last year, marking its first deficit since 2013.

By Alex Lee (alexlee@heraldcorp.com)