YG Revealed 40 Billion Won Of Contract Renewal Fee Are Not Just For BLACKPINK
YG denied paying each BLACKPINK member ten billion won for the team contract.
According to the Financial Supervisory Service’s electronic disclosure system business report, YG acquired about 41.2 billion won in exclusive down payment for intangible assets last year.
In the case of listed entertainment companies, the artists’ exclusive down payment is usually recognized as an intangible asset and then recognized as an expense by applying a flat-rate method (calculating a certain amount each year) according to the contract period.
Therefore, some speculated that YG may have paid a large amount of 10 billion won per BLACKPINK member to renew the group’s team contract.
However, YG explained, “Last year, not only BLACKPINK but also multiple IP contracts were renewed and new contracts were made,” adding, “We can’t tell you about all the details of the contract, but the amount is not a down payment only for BLACKPINK.”
Meanwhile, all four members of BLACKPINK have renewed their group contract with YG while doing their solo activities under a new home. The team is planning to release a new album and have a world tour.
