After BLACKPINK chose to end individual contracts with YG Entertainment, Korean media showed no expectations for group activities
On December 29, 2023, YG officially announced that all BLACKPINK members did not renew their individual contracts. This led to a significant drop in YG’s stock price. According to Chosun Biz, as of January 5, 2024, YG’s stock price has been declining due to the failure to extend individual contracts with BLACKPINK. The reason is that the majority of the revenue so far has come from BLACKPINK, so the activities of other groups are not considered a factor that would significantly boost stock prices.
The media outlet suggests that YG Entertainment has yet to address its excessive dependence on BLACKPINK. Although the exact percentage of BLACKPINK’s contribution to YG Entertainment’s achievements has not been disclosed, industry experts estimate that BLACKPINK’s revenue and operating profit exceed 80%. Meanwhile, expectations for activities from rookie group BABYMONSTER or boy group TREASURE both remain low.
In reality, industry experts express a lack of expectation for BLACKPINK’s group activities. This is due to the fact that members are likely to have signed with different agencies, making it challenging to coordinate the group’s schedule. Kim Hye Young, a researcher at Daol Investment & Securities, stated, “Because the individual contracts of BLACKPINK were not successful, we have lowered the target stock price from 100,000 won to 70,000 won.”
Furthermore, Mr. Kim Hyeon Yeong, a researcher at Hyundai Motor Securities, believes: “The performance growth in the first half of last year was largely affected by BLACKPINK’s overseas tours. Therefore, the business results for the fourth quarter are also expected to be unfavorable, and this year’s profit is anticipated to decrease compared to last year.”
Source: bizchosun, K14
