Buoyed by the runaway success of "Gangnam Style," the South Korean company behind music sensation Psy is taking on what has been a tricky market for international record labels to crack -- China.

"While our previous activity in China had been putting on concerts occasionally, we will now be setting up an office in China and aggressively pursue the China market," a representative for YG Entertainment told CNN in Seoul.

YG is one of three South Korean companies that have largely been responsible for Hallyu -- the Korean wave of sugary and attractive girl and boy bands that have taken Asia by storm over the past decade.

And China has not been immune to K-pop's allure.