[Click eStock] "YG Entertainment, BLACKPINK Re-signs... Biggest Risk Eliminated"

Kiwoom Securities analyzed on the 7th that the worst-case scenario has been eliminated for YG Entertainment with the renewal of the contract with BLACKPINK.

YG Entertainment announced the exclusive group contract signing with all four members of BLACKPINK the day before. In a report on the same day, researcher Namsoo Lee of Kiwoom Securities stated, “With BLACKPINK’s contract renewal, the activities of the most influential artist will continue, covering both the expectations for upward performance trends and the responses to downward pressure,” adding, “While additional negotiations seem necessary regarding individual activities, considering BLACKPINK’s global fandom, the contribution to performance as a complete group is expected to be larger than that of individual activities.”

Researcher Namsoo Lee also noted, “The rookie group Baby Monster, which debuted last month, set a new record for a K-POP group debut song by achieving 22.59 million views within 24 hours of their music video launch, showing a remarkable initial momentum,” and analyzed, “Based on a high number of YouTube subscribers, Baby Monster’s global success is rapidly transitioning from a possibility to a visible reality even before their official debut.”

He further stated, “Treasure’s 2023 tour has been announced, following their world tour of 40 shows including dome concerts in Japan from November 2022 to May 2023,” and predicted, “Starting with 17 shows including dome concerts in Korea and Japan, the tour is expected to expand with additional performances and schedules over time, increasing its contribution to earnings.”

He went on to expect that earnings will hit bottom in the first quarter of next year and then increase. He analyzed, “If full-group activities are possible in the second half of next year through BLACKPINK’s contract renewal, a performance base pattern opposite to that of the first half is expected to emerge,” adding, “Combined with additional improvements expected from Baby Monster’s growth, a leap to a completed format is anticipated.”