On May 15, the Q1 2023 results for all four major entertainment companies in the K-pop industry were revealed. The impressive figures showcased the ever-growing popularity of K-pop, signaling a substantial surge in the industry.

The companies experienced record-breaking album sales and the resumption of concerts, which brought great financial success. HYBE Labels, JYP Entertainment, and YG Entertainment achieved their highest-ever Q1 performances. SM Entertainment, despite having negative growth, performed relatively well considering the dispute over management rights.

JYP Entertainment reported consolidated sales of 118 billion KRW (87.9 million USD) and an operating profit of 42 billion KRW (31.3 million USD) for the first quarter. Compared to the same period last year, sales increased by 76% and operating profit by 119%. With an operating margin of 35%, JYP remains faithful to its core business. Album and digital music sales grew by 54.2% (51.9 billion KRW) and concert sales by 105.7% (6.7 billion KRW) compared to last year's first quarter. Additionally, revenues from merchandise and other sources jumped by 143%. JYP Entertainment sold a total of 3.66 million albums in Q1 2023, including 1.78 million copies of TWICE albums, 930,000 copies of Stray Kids albums, and 680,000 copies of NMIXX albums.

YG Entertainment delivered surprising results in the first quarter, with sales of 157.5 billion KRW (117.3 million USD) and an operating profit of 36.4 billion KRW (27.1 million USD). These figures represent a YoY increase of 108% and 497,% respectively, surpassing market expectations (sales of 123.1 billion KRW and operating profit of 16.3 billion KRW). The group BLACKPINK considered a mega IP, contributed significantly to the performance by conducting 14 world tour stops in the first quarter alone. Some of last year's performance revenues were reflected in the first quarter earnings. Additionally, TREASURE's 10 performances also significantly contributed to the results. Performance revenue, which was zero in the first quarter of 2022, increased significantly. BLACKPINK's Jisoo led the album sales by setting the record for the highest initial first-week sales (1.17 million copies) as a female solo artist.

HYBE, the industry leader, recorded sales of 410.6 billion KRW (305.8 million USD) and an operating profit of 52.5 billion KRW (39.1 million USD) in the first quarter. Compared to the same period last year, sales and operating profit increased by 44.1% and 41.7%, respectively. These impressive results were achieved despite BTS members going on hiatus due to military enlistment. The success can be attributed to the diverse lineup of artists working under the multi-label system. In the first quarter (January to March), the combined HYBE subsidiaries sold 9.11 million albums, with outstanding contributions from BTS's Jimin (1.45 million copies in the first week), TXT (3.14 million copies), NewJeans (1.3 million copies), and Seventeen (1.27 million copies).


Among the four major entertainment companies, SM is the only one to experience negative growth. In the first quarter, sales reached 203.9 billion KRW (152 million USD), and operating profit was 18.3 billion KRW (36.8 million USD). Although sales increased by 20% YoY, operating profit decreased by 5%. In Q1 2023, SM had their lowest album sales over the past 8 quarters due to the absence of major idol comebacks, with only 3.36 million albums sold. However, considering the expenditure of 4.9 billion KRW (3.65 million USD) on the management rights dispute, the overall performance can still be seen as relatively good.

The first quarter is typically considered the "off-season" in the entertainment industry, where artists focus on preparing for their next album and comebacks. As a result, the first quarter usually has the lowest performance in a calendar year, with sales gradually increasing towards the fourth quarter. However, this year's activated concert market, unlike last year, raises expectations for continued growth and a sustained boom throughout the second quarter.

HYBE is expected to maintain its momentum in the second quarter with various artists' activities. BTS's SUGA recently embarked on a world tour alongside the release of his solo album, while Seventeen set an all-time record for first-week sales with 4.55 million albums sold of their mini-album. LE SSERAFIM made a comeback on May 1, and ENHYPEN is set to make a comeback next month, and the new group BOYNEXTDOOR will also make their debut this month.

YG Entertainment, which is predicted to have the highest share of K-pop concerts in the first half of the year, continues its upward trend. BLACKPINK's world tour schedule for the second quarter has 2 more shows compared to the first quarter for a total of 16, and TREASURE has seven scheduled performances. 

JYP's main IPs, Stray Kids and TWICE, will also actively promote in the coming months. TWICE has 11 world tour spots scheduled for the second quarter, and Stray Kids will make a comeback next month.

SM, after a sluggish first quarter, aims for a turnaround in the second quarter. Aespa, EXO, and NCT Dream are scheduled to make a comeback one after another. The performance of EXO, who is making a comeback as a full group, is especially anticipated as it will greatly impact SM's overall performance. Moreover, the second quarter is anticipated to witness SM's highest quarterly album sales to date, reaching 7.5 million copies, and drawing 890,000 attendees to concerts and fan meetings.