YG Entertainment Refutes Speculations on BLACKPINK: In a recent development, YG Entertainment (YG) has come forward to refute the swirling speculation surrounding the hefty contract renewal fee allegedly offered to the members of BLACKPINK. According to the statement, issued on March 22, KST, the reported astronomical figures were misunderstood.
YG Entertainment Refutes Speculations on BLACKPINK’s High Contract Renewal Fee
According to the Financial Supervisory Service’s electronic disclosure system business report, speculation arose after financial information was disclosed. Koreaboo reported that YG had accumulated an exclusive down payment of approximately 41.2 billion rupees (approximately 2,55,80,00,000) for intangible assets in 2023.
A down payment for an artist’s exclusive contract in the entertainment industry is usually classified as an intangible asset and is recognized as an expense according to the contract period using a flat-out rate method.
Consequently, this disclosure led to speculations that the funds were disbursed to BLACKPINK members for the renewal of their contracts, with each member allegedly receiving around ₩10.0 billion (approximately Rupees 61,86,00,000).
The YG Group has quickly dispelled these notions, asserting that the reported sum was not solely allocated to BLACKPINK. According to a spokesperson for the company, multiple intellectual property contracts have been renewed and new ones have been signed over the past year, all of which are included in the reported expenses. Koreaboo reports that YG confirmed that the entire sum was not allocated solely for the BLACKPINK contract.
As well as BLACKPINK, many other intellectual properties were renewed and signed last year. Despite not being able to disclose all contract details, the reported amount cannot be considered exclusively a down payment for BLACKPINK, a YG representative told Yonhap News.
As a result of the exclusive group contracts signed by all four BLACKPINK members in December, YG’s substantial investment raised eyebrows.
Last year, all four members of BLACKPINK renewed their contracts with YG and decided to pursue solo careers.
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