There was a time when even the combined market cap of 'Entertainment's God Father' SM Entertainment and the third-biggest entertainment agency JYP Entertainment was inferior to that of YG Entertainment. Thanks to the incredible influence and popularity of Big Bang, YG Entertainment was able to earn quite a bit through the group, such as their overseas tours and concerts in Japan.
However, Big Bang's promotions began slowing down as Yang Hyun Suk, the executive producer of YG at the time, began to shift his focus on the production of 'Mix Nine.' In 2018, Big Bang released their last single, "Flower Road," and stopped group activities. Soon, YG Entertainment began falling behind. YG Entertainment kept its place in the 'Big 3' for the longest time but now has fallen to fourth place in terms of market cap behind HYBE (10.7 trillion KRW), SM Entertainment (1.63 trillion KRW), and JYP Entertainment (1.58 trillion KRW).
Why did this happen? This is because YG's market capitalization was dependent on Big Bang's activities. During the period when Big Bang was actively promoting, it took the top spot in the entertainment world, but over the past four years, YG's market capitalization fluctuated. Although iKON, WINNER, BLACKPINK, and TREASURE were active, it was not enough to fill the role of the big breadwinner like Big Bang in its prime.
Now, with the news of Big Bang's comeback, YG's market cap has recovered to 1 trillion KRW (~838 million USD) in just two days. This means that the market is reacting to YG's reliance on Big Bang's profit ratio.
In the case of HYBE, the company holds large breadwinners such as Seventeen, in addition to BTS. SM Entertainment also has a system in which the company does not focus on a specific group. Also, JYP Entertainment's net profit compared to the acquisition profit is solid compared to other agencies in its financial statements. On the other hand, YG is an entertainment agency that has a powerhouse in BLACKPINK, but they used to be highly dependent on Big Bang to the extent it recovered its market cap to 1 trillion KRW with just the news of Big Bang's comeback. YG Entertainment's market cap was under 1 trillion KRW for many months before the Big Bang news.
However, some Korean netizens are giving the cold shoulder to Big Bang's comeback. The primary reason these Korean netizens mentioned about their reaction to Big Bang's comeback is the various controversies the members were previously involved in. Two years ago, iesT.O.P stated that he no longer wanted to promote in Korea and that he would not make a comeback in Korea. Therefore, these are some people reacting coldly to the news that Big Bang would be making a comeback as a four-member group excluding Seungri.
Additionally, some netizens had a problem with the past marijuana controversy G-Dragon was embroiled in. On top of that, member Daesung was embroiled in a controversy in which an adult entertainment business was run in the building owned by him. Therefore, there are people who are giving the group the cold shoulder.
Nevertheless, there are still a mass group of fans overseas who support the group and are welcoming the group with open arms. Therefore, it seems that it would not be a difficult task for Big Bang to reclaim its title at the top of the music charts as one of the most influential and powerful groups in the world today. Still, there are questions being asked whether or not Big Bang can become the big breadwinner for YG Entertainment again.
with the news of BigBang's comeback, YG market cap has recovered 1 trillion KRW in just 2 days
this is good.
is it really necessary to keep on rehashing people' past?
Does JongKi want to be reminded of his divorce whenever he has a new project or hyekyo of his tax evasion years ago? or jungwoo of his past drug controversy?
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