2NE1 Reunion, Attention on Whether They Will Be YG's Savior
World Tour Starting in Seoul in October, Then Osaka and Tokyo
The group 2NE1 is returning as a 'complete group' after 8 years since their disbandment. As YG Entertainment's (hereafter YG) first girl group and a second-generation global idol star, attention is focused on whether they can become a savior to compensate for YG's poor performance.
On the 25th, YG announced that 2NE1 will hold the '2024 2NE1 Concert "WELCOME BACK" in Seoul' at the Olympic Hall in Olympic Park, Seoul, on October 5-6. Earlier, Yang Hyun-suk, the general producer, revealed the collaboration news with 2NE1, who are celebrating their 15th debut anniversary, through his official blog on the 22nd.
On the day of the collaboration announcement between 2NE1 and YG, YG Entertainment's stock price recorded an upward trend. Compared to the 52-week low recorded until the previous day, this was a notable figure. According to the Korea Exchange, YG Entertainment's stock price closed at 35,800 KRW on the 22nd, up 1.56% from the previous trading day, marking a rebound after six trading days.
Starting with the Seoul concert in early October, 2NE1 plans to hold concerts in Osaka and Tokyo, Japan, at the end of November and in December. General producer Yang expressed confidence, saying, "The generation that grew up with 2NE1 and listened to their music is sharing memories," and "We will work hard with all the staff to create a successful performance."
The collaboration between YG and 2NE1 was a predictable move. Even after leaving YG, the 2NE1 members consistently expressed their desire to perform as a complete group, and they proved their enduring presence by performing together at the 2022 Coachella Valley Music and Arts Festival, the largest music festival in the United States.
Additionally, in June, on the occasion of their 15th debut anniversary, news spread that the four 2NE1 members held an official meeting with General Producer Yang at YG's new headquarters for the first time in eight years, raising expectations for a reunion.
2NE1 was one of YG's super IPs along with Big Bang. Debuting on May 17, 2009, they gained great popularity by presenting a new concept of hip-hop music and style, contrary to the then-prevailing trend in the music industry that emphasized femininity. They established themselves as a top second-generation idol with numerous hit songs such as "I Don't Care," "I Am the Best," "Lonely," "Ugly," and "Come Back Home."
Moreover, for 2NE1 to perform as a complete group, collaboration with YG, which holds the trademark rights, was not optional but essential. During the 2022 Coachella Valley Music and Arts Festival performance, 2NE1 prepared their stage in utmost secrecy. This was because using the name '2NE1' for performances or other paid businesses required YG's permission or trademark rights transfer. Currently, the trademark rights for the group name 2NE1 and major music tracks still belong to YG. This is why the complete group stage was revealed as a surprise secret performance.
Attention is also focused on the background of YG joining hands with 2NE1. YG faced a crisis with a stock price decline following forecasts of decreased performance due to excessive dependence on BLACKPINK and an IP gap caused by the failure of solo contract renewals by members earlier this year. YG's stock price, which soared to 97,000 KRW on May 9 last year, has fallen nearly 62% to 35,950 KRW as of the 26th.
Until last year, YG enjoyed strong performance through the mega IP BLACKPINK. However, with the delay in IP generational change, a performance winter is expected for the time being. Kim Hye-young, a researcher at Daol Investment & Securities, analyzed, "YG's consolidated sales for the second quarter are expected to decrease by 35.8% year-on-year to 101.7 billion KRW, and operating profit is expected to decrease by 98.9% to 300 million KRW during the same period."
She added, "YG's main second-quarter performance comes from BabyMonster's album and Treasure's concert sales. Since there are only two idol IPs active at YG this year, including the rookie BabyMonster, it is disadvantageous in terms of profit, so we should look forward to 2025's performance rather than this year."
Therefore, it is interpreted that YG is defending its corporate value through the original super IP 2NE1 while waiting for the growth of rookie BabyMonster and preparing for BLACKPINK's world tour in 2025.
As General Producer Yang expressed, "The generation that grew up with 2NE1 and listened to their music" is expected to have both memories and economic power accumulated over more than a decade, making the reunion likely to be successful. However, attention is focused on whether Yang's roadmap can be realized until YG puts BLACKPINK's comeback and BabyMonster's activities on track through 2NE1's event-type performances.
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