Last year, the K-pop industry was abuzz when YG Entertainment failed to secure contracts for BLACKPINK members’ solo activities. After their contracts expired in August, uncertainty loomed over the group’s future as there was no news of renewals with YG Entertainment.
The label consistently assured fans that negotiations were ongoing. In a much-anticipated announcement in December 2023, YG Entertainment confirmed BLACKPINK’s renewal under the label for group activities.
However, individual members opted to pursue solo endeavors elsewhere. On March 21, the Financial Supervisory Service released YG Entertainment’s business report, detailing the company’s assets and expenses in 2023.
Drawing from the report, netizens inferred the cost YG Entertainment incurred to renew the contracts of BLACKPINK members for their group activities.
One netizen shared in a popular online community,
“Upon reviewing intangible assets, it appears that a new acquisition cost of 41.185 billion KRW (30.86 million USD) in advance payments was made in 2023.
Considering the significant amount of approximately 41.2 billion KRW (30.9 million USD) in advance payments acquired through new exclusive contracts between YG and YG artists in 2023, it is highly likely that the majority of this sum pertains to BLACKPINK’s renewal fees rather than new agreements with BABYMONSTER.”
The netizen continued,
“If you examine the artist list, you can narrow down who signed new exclusive contracts with YG and renewed contracts with YG in 2023.
Given the roster of artists that YG Entertainment managed in 2023, identifying those who either entered into new exclusive contracts or whose contracts were renewed could offer further insights.
From what is known, BLACKPINK and BABYMONSTER were the only artists with contract activities last year.
So it’s estimated that BLACKPINK’s renewal fees alone would exceed at least 30 billion KRW (22.5 million USD).”
The netizen added,
“The annual amortization cost of KRW 5.5 billion (4.1 million) suggests a prediction that these renewals could span a 7-year contract term.”
The poster estimated that YG Entertainment renewed the group contract with BLACKPINK for approximately 10 billion KRW per member (7.5 million USD).
