Posted by emmamadison2411,002 pts Wednesday, September 18, 2019

Industry officials reveal that YG's biggest crisis is the absence of a main "cash cow"


Industry officials are concerned about the status of YG's operating cash flow.

YG Entertainment was recently hit with a 6 billion won additional tax fee after a special investigation completed by the IRS. YG is also preparing to repay 67 billion won to LVMH for their investment in the agency in October 2014 after defaulting on the agreement due to plummeting stocks as a result of the "Burning Sun" scandal.

According to officials, the biggest problem with YG is growth as its earnings have deteriorated. The agency recorded a 2 billion won deficit in the first half of the year and YG artists who have been dominant in the music charts for the past years have been struggling.

Comebacks by Sechskies Eun Jiwon, WINNER and Kim Jin Woo as well as VIINI (Kwon Hyun Bin) all failed to make a big impact on the charts. AKMU is scheduled to make a comeback on the 25th but it's unknown whether they will be dominant enough to reverse the mood.

An industry singer stated, "YG is an agency where former executive producer Yang Hyun Suk was involved in every detail so his removal was a major risk factor. Artists that produce their own songs can release albums but debuts and comebacks will be difficult because the existing production system has been suspended."

Another official stated, "The agency's main source of revenue is overseas performances but it's unclear whether Big Bang will resume activities. Black Pink revenues failed to meet expectations as their "Arena Tour" only brought in 15 billion won in revenues and their American debut was not as big as was expected. Results of investments from business diversification such as cosmetics and food are also insignificant. It's hard to pinpoint YG's main "cash cow" at the moment."

A music official pointed out, "YG has always suffered from moral issues. This is, after all, the problem that's holding them back."

  1. Akdong Musician (AKMU)
  2. Big Bang
  4. iKON
  5. Sechskies
  7. Yang Hyun Suk
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kwinkonic108 pts Thursday, September 19, 2019 24
Thursday, September 19, 2019

that's why they kept on sending iKON to japan....


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trogdorthe8th8,524 pts Thursday, September 19, 2019 8
Thursday, September 19, 2019

I don't think you have to be an industry expert to know that would be a big issue. Big Bang MADE YG, and while other groups have done well enough the numbers don't lie. Even people who went to Black Pink's concerts when they toured over in America and in other countries in the west stated that they weren't sold out, not by a long shot. It will be interesting to see how they can handle this, so many of the members of their main source of income have dealt with scandal that it may not be possible for those remaining in Big Bang to pick up the slack. The only one from the group who HASN'T had a scandal bad enough for people to be skeptical is Taeyang, and while people are of course excited to see G-Dragon and T.O.P. return, some of their scandals are such that I don't know how welcoming K-netizens would be to a return from them. Sure, plenty of international fans are thrilled, but I don't know if it will be enough. The problem is, the Big Bang name in general has taken a large hit due to multiple major scandals now, so it may not hold the same value that it did, not only with fans but also with stockholders.


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