YG Entertainment Denies Speculations About BLACKPINK’s Super Expensive Contract Renewal Fee
On March 22, KST, YG Entertainment (hereon, YG) clarified through a statement that the speculated high contract renewal fee of the BLACKPINK members was not accurate.
Recently, the Financial Supervisory Service’s electronic disclosure system business report revealed that YG had acquired approximately ₩41.2 billion KRW (about $30.6 million USD) in exclusive downpayment for intangible assets in 2023.
Usually, the downpayment of an artist’s exclusive contract is considered an intangible asset for entertainment companies and recognized as an expense by applying a flat-out rate method according to the contract period. So, after the report revealed YG’s intangible asset acquirement triggered speculations that the money was paid to BLACKPINK members for the contract renewal, with each member being paid around ₩10.0 billion KRW (about $7.44 million USD).
However, YG explained that the money was not solely spent on BLACKPINK. A representative from the company told the media that last year, they renewed multiple IP contracts and signed new ones, which were all included in the expense. YG said that though they couldn’t divulge the details about the BLACKPINK contract, they could confirm that the entire amount was not for this purpose alone.
Meanwhile, all four members of BLACKPINK renewed their group contract with YG last year, while they decided to manage their solo careers separately.
BLACKPINK
Share This Post
