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YG Entertainment set to report first-ever net profit loss and operating deficit

AKP STAFF
Posted by Sophie-Ha 12 days ago 12,948

YG Entertainment, one of South Korea's "Big 4" K-pop agencies, faced a challenging fiscal year in 2024, marking its first annual net loss in profit.


According to an estimate of the label's financial reports for 2024, YG Entertainment is expected to report approximately 365.8 billion KRW (250.4 million USD) in revenue with an operating loss of 23.9 billion KRW (approximately 16.4 million USD). Overall, the company is expected to report a net deficit of 500 million KRW (approximately 342,268 USD).

YG Entertainment experienced a net income deficit in 2019; however, the company did not record an operating loss at that time. If the current projections hold, 2024 will mark the first time YG Entertainment reports both a net income deficit and an operating loss, highlighting the company's ongoing financial challenges.

In 2025, YG Entertainment plans to make a recovery with a focus on its music sector. YG announced it will phase out its actor management services to concentrate on music production and artist development.

Additionally, YG Entertainment released a list of full group comebacks, including BLACKPINK, with an ongoing global reunion tour for 2NE1 continuing in 2025.

Nevertheless, Korean netizens and K-pop fans have gathered in a popular online community to share their opinions on YG Entertainment's performance for 2024 with many expressing concerns. They commented:

"Aren't all the money-making artists gone? Are there any left? I didn't expect them all to leave."
"It seems like they're really pushing BABYMONSTER's YouTube promotion."
"I’m a BLACKPINK fan, but if they don’t change the leadership, it looks like things will stay hopeless."
"It feels like the company hasn’t worked properly for over 10 years, yet it's still running, which is surprising."
"But personally, I don’t think the large number of members suits YG’s style. When I saw BABYMONSTER during their survival show, I thought a 7-member group would be fine, but now I think it would have been better if they had followed Yang Hyun Suk’s original idea of narrowing it down to a smaller group to gain more attention. Honestly, even 7 members these days don’t feel like a large group, but after seeing 2NE1 and BLACKPINK, I don’t really feel YG’s unique vibe with 7 members. TREASURE is the same..."
"It’s honestly surprising that they haven’t failed yet. They were destined to fail."
"They were covering the past losses with BLACKPINK’s tour."
"It makes sense... now, when you think about YG artists, can you even name any?"
"Big Bang, 2NE1, and BLACKPINK’s glory days were only a few years long, but there's still no proper system in place. Yang Hyun Suk coming out and saying, 'Did I make these decisions?' doesn’t make the company look like it’s operating normally."
"Aren’t AKMU still around? What about G-Dragon and Taeyang?"
"G-Dragon and Taeyang left."
"G-Dragon and Taeyang left, and AKMU doesn’t aggressively do overseas tours like idols, so they can’t carry YG’s overall profits and losses."
"So this is why BABYMONSTER, who hasn’t even debuted for a year, is going on a world tour."
"BABYMONSTER has good skills, but it seems like they’re not being showcased well. The production could be better."
"It’s amazing that a company that should have gone under when the Burning Sun scandal happened is still being supported. Even though Yang Hyun Suk is causing all that trouble, it’s the fans who are keeping it alive."
"That’s because the company hasn’t developed. While SM and JYP have structured and evolved over 20 years, YG is still the same as when Big Bang debuted."

SEE ALSO: PLAVE takes #1 with 'DASH' + Stellar Performances on February 15th's 'Show! Music Core'!

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