Breaking Down K-Pop's 2024 Financials: Who's Winning and Who's Struggling?
Published March 6, 2025
The K-pop industry had an eventful year, and as we step into a new chapter, it’s time to take a closer look at how the major entertainment companies performed financially. From record-breaking tours to strategic stock buybacks, here’s a rundown of what went down in the business side of K-pop.
YG Entertainment: A Year of Transition
YG Entertainment has been in the spotlight for various reasons, but one key point of confusion is the status of its artists. To clarify, BLACKPINK’s members have left YG for their solo careers but remain with the company for group activities. Meanwhile, Black Label, a subsidiary of YG, has been focusing heavily on their rookie group, BABYMONSTER, with expectations of an album and a mini-tour ahead.
On the financial side, YG reported a loss of $342,000 for the year, despite strong touring numbers from TREASURE, who had over 40 shows worldwide.
While some argue that BABYMONSTER was their only active act, the numbers show that TREASURE played a significant role in revenue generation. Still, YG’s profits were underwhelming compared to its competitors.
SM Entertainment: Active but Not Profitable?
SM Entertainment had one of the busiest years in K-pop. Groups like NCT DREAM, aespa, TVXQ, and Riize all hit the road, and album releases were plentiful.
Yet, despite gross revenue hitting 273.5 billion KRW ($206M), the company still reported a Q4 net loss of 24.1 billion KRW ($18M).
To maintain shareholder confidence, SM implemented a stock buyback program, permanently retiring shares to boost their value. While this move may seem like an artificial way to raise stock prices, it’s a common strategy used by companies facing financial challenges. Still, considering how many groups were active, it’s surprising that their net profit was only $384,000.
One key issue? SM’s heavy reliance on the domestic market. While they dominate in Korea, international expansion is necessary to sustain long-term financial health.
JYP Entertainment: The Smartest Strategy in K-Pop?
If there’s a winner among the Big 3, it’s JYP Entertainment. They ended the year as the most profitable company, posting a net income of 100 billion KRW ($75M) with a gross revenue of 569 billion KRW ($430M). Their success comes down to a balanced strategy:
Frequent group debuts: JYP is known for consistently introducing new groups like NMIXX, VCHA, and KICKFLIP.
Maximizing existing artists: Stray Kids and TWICE had massively successful world tours, and their solo and unit activities kept revenue flowing. Cost-efficient touring: Stray Kids’ concerts are known for simple but impactful staging, keeping expenses low while maintaining high production value.
Thanks to these approaches, JYP remains the most financially stable company, with solid plans for the future.
HYBE: The BTS Factor and Expanding Horizons
HYBE has spent years expanding beyond BTS, launching multiple new groups and making aggressive global investments. However, this heavy spending resulted in HYBE posting the biggest loss among the major labels, with a reported deficit of $2.48M at the end of the year.
That said, HYBE still pulled in the highest revenue, proving that their investment-heavy strategy could pay off in the long run. Their goal is clear: reduce reliance on BTS and create a diverse roster of successful acts. With BTS set to return soon, the big question remains—will their comeback dominate the industry again, or will HYBE’s newer groups finally step up?
What’s Next for K-Pop?
The coming months are shaping up to be another dynamic period. YG needs to prove BABYMONSTER can be their next big act, SM must figure out how to convert their busy schedule into higher profits, JYP will likely continue its winning strategy, and HYBE will finally see if its long-term investments were worth it.
One thing is for sure: the K-pop industry is evolving, and only the smartest companies will thrive. Let’s see how it all plays out!
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