K-pop singer-rapper Psy has parted ways with his agency of eight years, YG Entertainment said Tuesday.

"We have decided, through a deep conversation, to end the contract to respect Psy's thoughts on taking on new challenges," the company said in a statement.

South Korean singer Psy poses for a photo during a publicity event in Seoul on May 10, 2017, to unveil his eighth album featuring 10 songs, including the title track "New Face" and the first track "I Luv It." (Yonhap)

The singer has led a successful music career with the label, which culminated in the breakout success of "Gangnam Style" in 2012.

"Our close relationship with Psy will continue forever regardless of a contract. We will support his new start," it said.

Psy is expected to found his own management firm. (Yonhap)