Life Is Peachy

Korn teamed up with Robinson once again for their second album, Life Is Peachy, released on October 15, 1996. Musically, it was similar to the first album, but also showed more of a funk influence on tracks like "Porno Creep" and "Swallow". The album included two covers, War's "Low Rider", with Davis' bagpipes and Welch on vocals, and Ice Cube's "Wicked", with guest vocalist Chino Moreno of Deftones. To help promote their new album, Korn opened for Metallica, and utilized the Internet. Life Is Peachy sold more than 106,000 copies in its first week and reached #3 on the Billboard 200. The first single, "No Place to Hide", spawned a Grammy nomination for Best Metal Performance. "A.D.I.D.A.S." was the second single and only music video, which also did well. The band gained more popularity after co-headlining the Lollapalooza music festival in 1997 with Tool. However, Korn was forced to drop off the bill after Shaffer was diagnosed with viral meningitis. Also that year, Korn augmented their growing crossover appeal by collaborating with Los Angeles-based production and remix duo the Dust Brotherson the track "Kick the P.A.". This track appeared on the motion picture soundtrack of the film Spawn.

In late 1997, Korn formed their own record label, Elementree Records. The first signing was Videodrone, whose singer, Ty Elam, is credited for giving Jonathan Davis singing lessons.Orgy, however, released their debut album prior to Videodrone's, giving Elementree its first Platinum certification. Orgy's guitarist, Ryan Shuck, is known for playing alongside Davis and Elam in the band Sexart. Over the next few years, Korn signed other acts like rapper Marz and Deadsy.