During the 3rd quarter of 2019, YG Entertainment’s earnings before taxes only reached 50 million wons.
On Oct 1st, the Korea Herald revealed the earnings of the BIG 3 in the 3rd quarter of 2019. According to the article, SM’s reached 14,3 billion won, JYP’s reached 12,2 billion won and YG’s is 50 million won.
During the past 3 months, JYP Entertainment has had many significant activities such as releasing ITZY’s first mini-album, TWICE’s latest mini-album as well as Stray Kids’ concerts. Their earnings before taxes are 29,1% higher than the 2nd quarter of this year, and 0,4% higher than the same period last year.
As for SM Entertainment, their 3rd quarter’s earnings come from Baekhyun, EXO-SC, NCT Dream and Red Velvet’s albums. This company is predicted to be able to expand in the U.S as well as a chance of collaboration with Marvel. The project boy group SuperM is a major reason for the rise in their stock price.
Comparing to its 2 rival JYP and SM, YG’s situation in the 3rd quarter of 2019 is depressing. Despite AKMU’s recent successful comeback as well as WINNER and BLACKPINK’s activities,…this company failed to raise their sales. YG’s earnings are estimated to be about 50 million won before taxes, which is 98,1% less than that of the same period in 2018. Analysts explained that YG’s sales from concerts had plummeted, while the production team was damaged as well due to a lack of producers.
On theqoo, Korean netizens are in shock by this number of YG. As a member of BIG 3, 50 million won earnings are too low, according to many people. Some even mistook this to be a typo error.
Some comments said: “AKMU should end their contract with this agency soon”; “Both rivals of YG have reached 10 billion won, while YG only has 50 million won. They are falling apart”; “Artists and staff, please leave YG ASAP”; “BLACKPINK’s schedule is so tight that they are working without rest. I feel bad for BLACKPINK”; “50 million won? Isn’t this a typo error?”; “This is why YG must arrange a dome tour for BLACKPINK in Japan later this year”; “BLACKPINK should focus more on promoting in Korea to strengthen their fandom and widen the public’s recognition”; “Even BLACKPINK cannot save YG”…
In 2019, YG has been through a serious crisis that involves Seungri (BIGBANG’s ex-member), B.I (iKON’s ex-member) and Yang Hyunsuk (YG’s former Chief). The agency’s public image is ruined, the stock price plummets, trainees left and many comeback plans were affected.
In September, YG has been charged with an additional 6 billion won in tax by the National Tax Service after the 6-month investigation. In the upcoming Oct 16th, YG will have to return 67 billion won (annual interest included) to the investor LVMH.