YG Entertainment Is On The Verge Of Bankruptcy?

Recently, YG Entertainment drew attention as they revealed the financial report for the second quarter of 2024. In particular, YG’s profit from April to June was only 300 million won, resulting in various speculations about the agency’s performance.

At the moment, BABYMONSTER, TREASURE and AKMU are the most active artists under YG. WINNER member Seunghoon just made his comeback with the solo album “My Type”, and WINNER is also expected to return as a full team when Mino is discharged from the military.

Although YG artists are doing a lot of activities, the profit they earned in the second quarter was considered low compared to other BIG 4 agencies, SM, JYP and HYBE. As such, fans are worrying that YG is facing financial difficulties. According to experts, YG is losing the heat due to BLACKPINK’s hiatus. Since BLACKPINK members are focusing on their solo promotions, fans may have to wait until 2025 to see their group come back. In addition, G-Dragon’s departure from YG at the end of last year also affected the agency significantly.

In response, Korean netizens commented, “To be honest, Yang Hyun-suk did not create YG. It was Teddy and BIGBANG who did it”, “Without BLACKPINK, YG is just a medium-sized company”, “Yang Hyun-suk ruined everything. Where’s BABYMOSNTER and what are they doing?”, “YG is going to struggle like this for a while more. BABYMONSTER is still a rookie group. TREASURE, AKMU and WINNER don’t generate much money”, “I think YG needs to debut a new boy group”, “Will YG go bankrupt?” etc.

However, in general, it is very difficult for a top company like YG to go bankrupt. YG’s market capitalization is 600 billion won, proving that the company is still standing tall even without their ace group. The sudden drop in revenue is just something that any business might experience.

YG is still allowing their artists to promote regularly. BABYMONSTER just proved their concert power by selling out their first Asian fanmeeting tour. Despite earning lower than that during their peak, YG still has a stable source of revenue.

The enormous revenue of 331 million USD from BLACKPINK’s world tour “BORN PINK” is enough to help YG stay in BIG 4. Despite BLACKPINK’s hiatus, YG is still selling merchandise of the members and hinting at the possibility of BLACKPINK’s comeback.