Insider Report Reveals YG’s Plans After Seungri’s Scandal
An insider report, called the Hana Financial Investment Equity Research, is circulating online and it reveals YG Entertainment‘s future plans following Seungri‘s Scandal. Written by analyst Lee Ki Hoon, this report outlines YG Entertainment’s current status and future plans – and ultimately advises readers to buy YG shares. K-Pop fans are looking over the report and discussing how its contents affect their YG Entertainment artists.
The first item on the report covers Seungri’s scandal. It points out that YG Entertainment will focus on better managing the artists and their individual side businesses, as well as rebuilding trust with the market.
Translation: “1. Recent Issues
1) Regarding Seungri
– As the official statement mentioned, Seungri’s exclusive contract has been terminated. The agency did not get involved with its artists’ individual businesses, thinking it was unnecessary, but with the recent turn of events, the agency is reflecting on its mistake to do so.
– It is not the best business model for a management agency. Also, the agency had trouble getting involved because Seungri, who debuted in 2006, had all the control over his business.
– The agency plans to get more involved and take more control, with a systemized way to look over such things. The agency will focus on regaining the market’s trust.
The report continues to cover YG Entertainment’s upcoming schedules for the other artists managed by the agency. The first on the list is BLACKPINK, expected to return to promotions in April and go on tour. The report also reveals that member Rosé will likely fly solo once the tour is over.
Translation: 2) Artists’ Schedules & Comments
* BLACKPINK: Expected comeback in April, US/Europe tour (with KIA sponsor, since the name value isn’t high yet, sold out 6 and added 2 dates), Rosé’s solo post tour
– The US has high reselling rates, meaning when 2 people want to go, they buy 4 tickets and resell the other 2. This might be affecting the speed of the ticket sales.
– BLACKPINK does not have a big fan base in the US. They’ve only had TV show exposure, so the added dates might not sell out, but the financial risks of these performances are not YG Entertainment’s.
WINNER, iKON, and Lee Hi are also mentioned in the report. This particular news of their returns to promoting has many fans excited, although the details are difficult to confirm. According to the report, fans can be on the look out for solo promotions by Mino, Seungyoon, and unidentified iKON members.
Translation: * WINNER: Will release new tracks after BLACKPINK’s return. Song Mino and Kang Seungyoon will go solo this year.
* iKON: Released the repackage ‘IM OK’ in January. This group promoted as whole in 2018, so now they will focus on solos and units. iKON + Lee Hi solos are scheduled post BLACKPINK and WINNER comebacks.
The report shares that YG Entertainment has extremely high hopes and big plans for TREASURE13, the agency’s new boy group in the making from its TV program Treasure Box. The report projected very specific months for the new group’s debut and domestic promotions, which fans are thrilled to read.
Translations: * Treasure Box: Likely to debut between May ~ July. Working on creating contents right now. The group will promote domestically this year. Once the group debuts, depending on the public reaction, the agency will release more detailed timelines.
– TREASURE13 will release tracks in May. YG Entertainment production is often artist-led, which means it takes a long time to get an album going. However, since TREASURE13 members are young, the agency will create songs for them and push for debut/comeback as planned.
– Once TREASURE13 debuts, TREASURE and MAGNUM will be divided. MAGNUM has three Japanese members, so the agency believes they will be taken well in Japan.
In addition, the report mentions BIGBANG. According to it, the agency expects the group to create profit again in 2019, as members return from their military duties and go on scheduled or to-be-scheduled tours; however, most fans are skeptical about this part of the plan coming true, after the recent turn of events resulting in a member’s contract termination.
Translation: * BIGBANG: Members returning from military duties at the end of the year, expected to create profit again in 2019. (Dome tours scheduled or to be scheduled)
Lastly, the report shares that the agency has three main areas of concentrations aside from managing the artists. These include the agency’s involvement in TV program productions, the agency’s new building in construction, and the agency’s management style change. YG Entertainment will, according to the report, continue to work on the Treasure Box program and its following projects, complete the new building construction by the end of the year, and upgrade the production system to expedite the artists’ comebacks to twice a year.
Translation: 3) Other Profits and Management Related Items
– TV Productions: Currently focusing on the Treasure Box (Projects, etc). The profit isn’t sizable enough for a leverage yet
– Construction: To be completed by the end of the year. Depreciation 40 years, 60 billion KRW, excluding the estate price out of the 100 billion KRW
– Management System: In the past, YG artists took a long time to return to promotions. In the future, this period will be shortened to at least twice a year. All artists will work toward building trust.
With so much information regarding their favorite artists, fans question the validity of this report. Most often, these financial investment reports are based on the information officially released by the agencies and/or from direct meetings with the agencies’ IR departments.
