by K-pop’s global influence overcame the corona pandemic. Last year, BTS’ agency Hive achieved 1 trillion won in annual sales for the first time as a music agency. Major domestic music agencies, including SM and YG Entertainment, recorded the highest performance since their founding. Thanks to the artists’ interpretations of each agency, we achieved such growth even amid a pandemic.
According to the Electronic Disclosure System of the Financial Services Commission, Hive recorded annual sales of 1.25 trillion won on a consolidated basis last year, an increase of 58.0% from the previous year, a record high. Operating profit increased 31% to 190.3 billion won. This is the first time Hive has surpassed 1 trillion won in annual sales, and it is the first among domestic music agencies.
SM and YG also achieved record highs. SM posted an annual sales of 701.5 billion won last year and an operating profit of 68.5 billion won, up 954.1%, and succeeded in turning into a black with a net profit of 123.4 billion won. Last year, YG recorded sales of 355.6 billion won and an operating profit of 50.6 billion won, up 39.3% and 370.4%, respectively.
The growth of these agencies is probably due to a combination of factors, but the industry believes that the major artists’ performances have driven the most significant increase in sales. Hive’s concert sales last year reached 49.7 billion won, an increase of about 980% compared to the previous year. The ‘BTS Permission greatly influenced this Dance on Stage – LA’ concert held by BTS at Sofai Stadium in Los Angeles, USA, for the first time since the Corona 19 pandemic last year. 91.15% of the concert sales, or 45.3 billion won, occurred in the fourth quarter when BTS held a concert.
Album sales also increased significantly. Last year, K-pop album sales reached 57.09 million copies based on the Gaon Chart 1st to 400th, up 36.9% from the previous year. Album exports also jumped 62.1% to $220,836,000 (about 264.1 billion won).
Hive also recorded 378.5 billion won in album sales, up 18% from the previous year. After BTS sold 7.4 million copies of ‘Butter’, which took first place for ten weeks on the US Billboard singles chart ‘Hot 100’, most singers sold millions of albums, including 3.7 million copies of Seventeen, 1.8 million copies of Tomorrow by Together, and 2.2 million copies of N-Hyphen. In addition, Ariana Grande and Justin Bieber of Ithaca Holdings, which Hive acquired, contributed to the album sales by selling 2.4 million and 2.35 million copies. With the success of NCT and Espa, SM also posted sales of 17,621,000 albums last year, about twice that of the previous year.
As the industry overcomes the pandemic and the offline performances begin in earnest, the sales of significant music agencies are expected to grow even more this year. In particular, as in other industries, there is a prevailing view that consumption in retaliation due to the pandemic will significantly increase the performance culture.
The most apparent change is revealed in JYP Entertainment. According to the Korea Exchange, on the 31st of last month, on the KOSDAQ market the previous day, JYP Enter finished trading at 6,800 won, up 5.74% (3,300 won). It is a 52-week high based on the closing price, and it is the first time that JYP Entertainment has entered the 60,000-won range since its listing in August 2001. During the day, it rose to 62,300 won. JYP Entertainment has been on a downward trend since the beginning of this year, dropping to 38,000 won at the end of January but rebounding in February and steadily rising and reaching the 60,000 won level. From the 22nd of last month, the market capitalization also broke the 2 trillion won level, currently recording 2.1582 trillion won. This is an increase of 358.5 billion won from 1.7997 trillion won on January 3rd.
As the Omicron mutation that swept the world stabilized, overseas countries began to ease quarantine regulations this year. This growth was possible as overseas offline tour routes were opened. TWICE, the representative idol group of JYP Entertainment, completed seven concerts in the US last month and is about to perform three times in Japan in April. Stray Kids is also scheduled to hold 15 world tours in Korea, Japan, and the United States this year.
Some say that last year’s album sales went against the global trend, so there is a burden on the base effect of the previous year. Still, in January and February, the combined album sales of the four entertainment companies surged 122% and 83%, respectively, so growth will continue. A view emerges. However, countermeasures are also needed as negative perceptions of the Korean Wave are growing, such as the Northeast Project issue and criticism of excessive commerciality.
In addition, unlike large agencies that have grown significantly through online concerts and global album sales, the polarization between small and medium-sized agencies and indie labels has become more serious since the Corona 19, when the performance itself became impossible or the distribution of capital necessary for album production was impossible. As quarantine regulations on concerts are being relaxed in Korea this year, it is also interesting to see whether the phenomenon of the poor in the famous music world can be resolved.
