YG spent more than 700 billion to retain BLACKPINK, twice as much as HYBE renewed with BTS, is it true?

Recently, both the media and the online community couldn't help but stir at the figure of 760 billion that YG spent to retain BLACKPINK. Immediately, the company spoke up about this issue.

On March 21, Korean media reported that YG Entertainment had to spend a "huge" amount of money to retain BLACKPINK. Specifically, according to YG's business report published on the 21st, the amount of exclusive contracts the company acquired was listed as 41.185 billion won (about 760 billion VND).

According to estimates, extending Hac Huong's contract will cost about 40 billion won and the contract renewal fee for each member is estimated at about 10 billion won (about 186 billion VND).

This caused Korean media to stir and quickly contact YG Entertainment to confirm the incident. On the morning of March 22, talking to Yonhap News, a company representative said:

"Last year, there were renewals and new contracts not only with BLACKPINK but also with many other IPs (intellectual properties). Although we cannot reveal all contract details, this amount of money cannot be considered. is a deposit only for BLACKPINK".

The YG representative also revealed: "BLACKPINK's group activities will be carried out in collaboration with YG as before. We are planning to release a new album and a world tour."

Also according to Korean media, BLACKPINK's contract renewal fee was confirmed to be the highest in the industry. Daol Investment & Securities estimates that the amount of money HYBE spent on BTS members is about 21 billion won, only half that of YG's "pet chicken".

However, the company's actual report shows that the amount can be up to 43 billion won. But each BTS member only received 6 billion won, lower than BLACKPINK. But instead, the boys received shares from HYBE as a gift, which far exceeded the cash renewal fee.

Regarding BLACKPINK's contract, many people question whether the figure of 41 billion won is appropriate for the status and popularity of the members? And according to records, this global music group has the ability to bring huge profits to the company.

During 7 years under YG Entertainment, Hac Huong gradually rose to a leading position in Korea and became famous internationally. The group has many sources of income from releasing music products, selling albums, attending events, being brand ambassadors, world tours...

In the Born Pink world tour alone, BLACKPINK has visited 24 countries, 34 cities, and held more than 40 performances. Korean reporter Kang Sung Hoon said that the 4 girls earned 350 billion won after this tour.

That number only counts sales proceeds. As for revenue, the group is likely to earn $163.8 million, becoming the highest-grossing tour by a female artist since 2010.

After deducting expenses and shares given to the management company, BLACKPINK also "pocketed" a large amount of money. Not only that, members also have income from many personal activities.

Previously, by the end of 2022, each girl's net worth was estimated to be about 20 million USD (about 475 billion VND). Compared to the personal assets and revenue that BLACKPINK brings to YG Entertainment, the amount of money to renew the contract is only a small part.

However, Korean media said that 10 billion won for maintaining BLACKPINK's name and activities is a large, attractive amount of money, enough to convince the members to sign a group contract. In addition, the 4 girls will also continue to receive additional money from YG Entertainment for future group activities.

After the business report of the Korean entertainment industry giant was announced, domestic securities experts speculated that the contract term would be 4 years if depreciation is distributed semi-annually.

However, the initial payment of more than 5 billion won was disbursed in Q4 and left a balance of 35 billion won. If depreciation is allocated quarterly instead of semiannually, this indicates that the exclusive contract lasts only 2 years.

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