How much did YG Entertainment pay the BLACKPINK members to renew their group contracts? Details explored as agency clarifies rumors

On March 21, 2024, YG Entertainment's financial report unveiled the lucrative renewal contracts for BLACKPINK members, each set to receive between $30m-$37.5m, totalling $120m-$150m for the group.

An upfront payment of approximately $7.5m per member has already been disbursed, constituting 20%-25% of the total contract value.

Last year, the K-pop industry buzzed with speculation as YG Entertainment struggled to secure contracts for the group's activities following the expiration of their previous agreements.

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However, in December 2023, the agency confirmed the renewal of BLACKPINK's group activities under its label. In a strategic move, YG Entertainment allocated a substantial sum, around $30.7 million (41.2 billion won), towards "intangible asset prepayment contracts" for the quartet's future commitments.

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YG Entertainment's investment in BLACKPINK: A breakdown of renewal contracts and solo ventures

The investment by YG reflects the agency's confidence in the group's commercial viability. While the group renewed their contract with YG Entertainment, each member—Jennie, Lisa, Jisoo, and Rosé—opted to pursue solo ventures.

Establishing their agencies—Odd Atelier, Lloud, BLISSOO, and an independent path, respectively—underscores their desire for individual creative expression.

Despite the focus on group activities, YG Entertainment emphasized that the contract sum also includes investments in other intellectual properties (IPs), not solely the group.

This clarification aims to dispel any misconceptions about the allocation of funds.

Drawing insights from netizens and industry analysts, it's estimated that the member's renewal fees account for a significant portion of the reported investment.

The renewal contracts are believed to be valued at around USD 7.5 million per member, totalling billions in South Korean won.

The decision to invest heavily in group activities signals YG Entertainment's commitment to fostering the quartet's success.

With a sizable upfront payment and renewed contracts, the agency aims to facilitate extensive activities for the group in the coming years.

In December of the previous year, YG Entertainment secured an exclusive contract for BLACKPINK's group activities, underscoring its status as its flagship intellectual property.

According to the Financial Supervisory Service's report, YG Entertainment recorded significant intangible assets exclusive contract fees in 2023, totalling approximately 41.2 billion won.

This figure represents the down payment for future commitments, including BLACKPINK group's activities.

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As the members embark on a new chapter with YG Entertainment, each member's solo endeavors add diversity to their portfolio. The establishment of personal agencies reflects their autonomy and ambition in shaping their careers beyond the group.

Despite the absence of individual exclusive contracts, the quartet continues to assert its dominance in the music industry. This was evident through their immensely successful world tour Born Pink which wrapped up in September 2023.

Drawing an astonishing 1.8 million attendees and achieving remarkable sales figures, the tour underscored the group's formidable presence.

Consequently, even with the lack of individual agreements, BLACKPINK's collective endeavours are anticipated to bring substantial profits to both YG Entertainment and its members.