Resilience in Adversity: The Power of Content Fuels YG Entertainment's Recovery

In spite of challenges, YG Entertainment is experiencing a resurgence. After grappling with the Burning Sun scandal that emerged at the end of 2018, the company is riding a wave of recovery, demonstrating an impressive upward trajectory.

This resurgence is clearly visible in the company's stock performance. In March 2020, the stock price had plummeted to 18,950 won but has since surged to 92,000 won (as of the closing price on the 26th). The company's market cap stands at 1.7174 trillion won, poised to soon breach the 2 trillion won mark.

The upward swing has been particularly evident since the end of November last year, revealing an astonishing growth rate. Comparing to the previous stock price of 39,000 won, it rose to 92,000 won in just over six months. This denotes a threefold increase from the 18,950 won it had plummeted to in the wake of numerous crises since 2019.

While stocks of entertainment companies are generally performing well, YG's growth is notably remarkable. The company's stock continues to rise, despite the ongoing trial of executive producer Yang Hyun-suk under charges related to the Aggravated Punishment of Specific Crimes Act.

When Yang Hyun-suk was summoned to the prosecution, there were expectations that it would be challenging for the company to recover. However, YG has fully regained its vitality as a global content company, despite the founder's risk being a significant factor in an industry where image is vital.

The Q1 2023 financial results for YG Entertainment recorded impressive growth, with revenue of 157.3 billion won and operating profits of 36.5 billion won. These figures represent respective increases of 108.3% and 204.7% compared to the same period last year.

Despite adverse conditions, YG's recovery as a global company is ultimately a testament to the power of content. The continued success of BLACKPINK and the curiosity surrounding the globally anticipated debut of new girl group BABYMONSTER later this year have been major boosts.

As the leading artists of K-pop, BLACKPINK has been painting the world pink in 2023. Starting with a concert in Seoul in October last year, they launched a mega-sized world tour, BLACKPINK WORLD TOUR [BORN PINK], performing 14 times in 7 North American cities and 10 times in 7 European cities.

This year, they have encore tours in 16 cities including Australia and Asia, followed by stadium performances in Paris, France, and four cities in North America. Particularly in April, they graced the stage as the first-ever K-pop headliner at the Coachella Valley Music and Arts Festival in the US. They are also set to headline the British Summer Time Festival at Hyde Park in July.

Member Jisoo proved her robust global presence with a successful solo debut along with the world tour. Jisoo released her first solo album [ME] on March 31st, and from that day to April 6th, she achieved 'million-seller' status by selling a total of 1,172,351 copies, setting a new record for the highest first-week sales by a K-pop female solo artist.

BABYMONSTER, the new girl group YG is unveiling seven years after BLACKPINK, has already garnered attention. With a multinational line-up and all-rounded talents, their teaser content has surpassed 400 million views. They broke the record for the shortest period for a K-pop girl group to reach 2 million YouTube subscribers in just 129 days.

Moreover, their pre-debut song 'DREAM' made a remarkable achievement by topping the Billboard 'Hot Trending Songs' chart, an unprecedented feat for a group that has not yet debuted.

While TREASURE, the multinational boy group, might not have the highest recognition domestically, they are acclaimed as top-tier artists in Asia. In 2022, after releasing their first mini-album 'THE SECOND STEP: CHAPTER ONE', they held their first solo concert 'TRACE' in Seoul. They completed their '2022 TREASURE CONCERT IN SEOUL' in November 2022 and embarked on their first tour in Japan two and a half years after their debut. The large-scale concert held in 8 cities for a total of 26 performances drew nearly 300,000 fans. This is the largest scale for a K-pop artist visiting Japan for the first time after their debut.

Since then, TREASURE has crisscrossed Asia, performing in 17 cities, including Taiwan, Malaysia, Indonesia, Thailand, Singapore, the Philippines, China, and Hong Kong, for a total of 40 times, attracting a total of 420,000 fans (including Japan), solidifying their position as a global sensation and showing their true colors as 'performance artists.'

Moreover, G-Dragon of BIGBANG raised the expectations of global music fans by announcing a variety of activities, including a new album, on January 1st of this year. Through the 'G-DRAGON - GUERRILLA DESK: G_Division' video, he said, "I will come to you through various activities. I am preparing an album," and "I will make this year one where I can bring good news."

Along with BLACKPINK, TREASURE, BABYMONSTER, and BIGBANG, WINNER, AKMU, and Sechs Kies have also been with YG for a long time.

Can YG continue this steep growth trajectory? There's a significant variable. The renegotiation of the contract with BLACKPINK, which ends in late August. YG, as an organization that has been together through the entire process from BLACKPINK's incubation to becoming a global content through a large-scale world tour, is expected to be able to re-sign the contract. It is anticipated that YG will make every effort to re-sign with BLACKPINK.

Of course, given BLACKPINK's fame, there are likely to be content companies interested in signing them. In particular, it's said that companies beyond South Korea, even global ones, may show interest in BLACKPINK. However, recruiting the four superstars, who have a strong musical color and exist 'together yet separately,' is not an easy task.

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