The news of former Lee Hi leaves YG Entertainment hit the waves on December 31.

Lee Hi fans, however, are calling it a New Year gift from their favorite singer. In the meantime, Lee Hi and YG Entertainment both have confirmed that they have parted ways.

In a statement, YG Entertainment said: "After discussions with Lee Hi, following Lee Hi's contract expiration, Lee Hi will not be renewing her contract with us."

lee hi

Lee Hi has been with YG for the last seven years. She joined the label in 2012 after being featured on SBS "K-pop Star" Season 1 in 2011.

The South Korean entertainment company - YG Entertainment currently manages Big Bang, CL, Dara besides actors including Kang Dong-won, Choi Ji-woo, Cha Seung-won, Lee Sung-kyung, Nam Joo-hyuk, and Yoo In-na.

"We will continue to support Lee Hi's future endeavors who has been with us for the last 7 years and has been able to build her unique aura," the YG Entertainment said in the statement.

Lee Hi issues statement

The 23-year-old k-pop singer also issued a statement on Instagram where she revealed that she took the decision after long and hard thinking.

Lee Hi said that while she was leaving YG Entertainment with a heavy heart, she will be "prudent" before finalizing on her next agency.

She told millions of her fans that she will soon have "good news" for them.

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안녕하세요 여러분 이하이입니다. 2019년 마지막 날 조금은 낮설고 새로운 소식으로 인사드립니다. 저는 올해를 마지막으로 오랫동안 함께한 YG라는 둥지를 떠나려고 합니다. 돌아보면 함께한 시간이 긴만큼 제게 정말 많은 추억이 있네요. 16살의 저는 어쩌면 무모할만큼 커다란 꿈을 가지고 오디션에 나갔고 어릴적 동경하던 YG란 회사에 들어가 멋진 언니 오빠들의 도움으로 제 첫번째 싱글인 1.2.3.4와 First love 앨범을 완성해 발매했죠. 처음 녹음실에서 제 목소리를 들으며 스스로 신기했던 기억도. 떨리는 마음으로 발매한 앨범 모니터링을 하던 그해 10월도. 모든게 아직도 어제일처럼 남아있어요. 어린 제가 가수가되기까지 그때도 시간은 참 빠르구나 생각했지만 1집부터 최근 발매한 3집까지. 17살의 제가 24살이된 지금까지. 시간은 늘 빠르게 지나가는것 같아 한편으론 조금 아쉬운 마음도 또 한편으론 평생 잊지못할 소중한 추억으로 남아있습니다. 물론 늘 쉽지만은 않았지만 제게는 유난히 행운같은 일들이 많았던것 같아요. 특히 저를 위해 안보이는곳에서 늘 노력해주신 오랜 친구이자 가족같은 고마운 스텝분들과 함께 쌓아올린 멋진일들은 아마 제 평생 잊지 못할것같아요. 하루아침의 결정이 아닌 아주 오랜시간동안 수많은 고민 끝에 내린 결정인 만큼 저의 결정과 새로운 출발을 응원해주신 YG의 많은분들께 진심으로 감사드리며 앞으로 저도 더 좋은 음악으로 보답할수 있도록 노력하겠습니다. 8년이라는 긴 시간동안 저의 성장을 함께해준 회사를 떠나기에 현재 조금 더 신중하게 앞으로 함께할 회사를 고민중이며 여러분께 빠른 시일내 좋은 소식으로 인사드리겠습니다. 새해에는 더 좋은 일만 가득하기를 바라며.

A post shared by @ leehi_hi on Dec 31, 2019 at 12:19am PST

Fans happy on Lee Hi leaving YG

Lee Hi fans have taken the news of the K-pop singer leaving YG entertainment with a relief as many noted that it was a good decision.

A Lee Hi fan said: "Her selling power was way to[o] high to stay in a company that barely allowed new music."

Another observed: "Good. I hope she finds an agency that actually helps her grow as an artist."

A Lee Hi even attacked YG: "After her initial release, she has gotten hardly any support and now they are refusing to release any music for her and also not letting her terminate her contract with them. They were essentially relying on her name value alone as an ex member of 2NE1 to carry her and hardly gave her any support outside of that."