YG Entertainment struggles since 2019 began are finally showing and it doesn’t look good!
While other agencies reported profits, YG Entertainment reported millions of dollars in loss. YG Entertainment recorded 2.1 billion won ($1.76 million) deficit for Q1 and Q2 (the first half of 2019).
In comparison, SM Entertainment reported a profit of 6.7 billion won ($5.6 million). JYP Entertainment scored the highest among the big 3, reporting a profit of 15.2 billion won ($12.7 million).
The biggest agency that reported the biggest profit for the first half of 2019 is Big Hit Entertainment; Big Hit reported a record first half operating profit of 39.1 billion won ($32.8 million) thanks to BTS global popularity.
Even lower tier agencies like FNC Entertainment still reported a profit unlike YG Entertainment. FNC reported an operating profit of 800 million won ($671,200), which is four times greater than the operating profit posted by YG.
YG Entertainment also reportedly had to pay back the 67 billion won ($56.2 million) investment from Louis Vuitton Moe Hennessy (LVMH). YG position in the industry is shaking due the numerous scandals it’s been involved in since 2019 began.
Experts also speculate that Big Hit profit will take a hit once BTS members start enlisting. It is unknown if the agency would be able to bounce back, many compare YG and Big hit to each other, both created legendary Kpop groups. YG wasn’t able to report the same profits since BIGBANG began enlisting in the military as they made up for a good portion of their profit, for now Big Hit relies solely on BTS, TXT only debuted earlier this year and it will take them a while before they begin contributing substantially to the agency like BTS does.
What do you think of this?