Executive Pay for First Half Exceeds 9 Billion Won for 10 Leaders
All Four JYP Executives Receive Over 500 Million Won
Bang Si Hyuk, Who Received 'Zero Won' Last Year, Excluded from Disclosure
Jin Young Park, Chief Producer of JYP Entertainment, received 2,229.57 million won in the first half of this year, making him the highest-paid executive among the leaders of the four major K-pop agencies. His performance-based bonus (1,827.28 million won) was more than four times his base salary (402.29 million won), highlighting a compensation structure focused on results.
According to the Financial Supervisory Service's electronic disclosure system on August 20, JYP posted sales of 356.6 billion won and an operating profit of 72.5 billion won in the first half of this year, representing year-on-year growth of 53.6% and 68.9%, respectively. As performance improved, executive compensation also increased significantly. CEO Wook Jung received a total of 1,257.83 million won, of which 1 billion won was a performance bonus. Vice President Sang Bong Byun received 816.84 million won, and Division Head Ji Eun Song received 536.35 million won. The company emphasized the rationality of its compensation system, stating, "Whether ESG (Environmental, Social, and Governance) targets were met was also reflected in the compensation evaluation criteria."
Industry insiders believe that JYP’s compensation system is closely aligned with its global expansion strategy. Aggressive overseas initiatives, such as rookie projects targeting North America and Japan and the expansion of world tours, have led to rapid performance improvements, resulting in performance bonuses being awarded to the management team.
SM Entertainment saw its operating profit rise 79% year-on-year to 80.2 billion won in the first half. Compensation was distributed broadly across the management team rather than being concentrated on specific individuals. Co-CEO Young Jun Tak received the highest amount at 706 million won, followed by Co-CEO Cheol Hyuk Jang with 644 million won, and Chief A&R Officer (CAO) Sung Soo Lee with 562 million won. An industry official analyzed, "SM has operated a stable business model based on artist IP (intellectual property), emphasizing a collaborative management structure."
YG Entertainment turned a profit in the first half and paid Chief Producer Hyun Suk Yang 1,215 million won, which included base salary, project-based allowances, and welfare benefits. YG explained, "The amount was calculated based on revenue generated from overseeing music and concert production." The successful contract renewal with BLACKPINK and the achievements of rookie girl group BABYMONSTER were credited as major contributors to improved performance. Analysts noted that YG has long maintained a producer-centric organizational culture, which is reflected in its current compensation structure.
HYBE recorded an operating profit of 87.5 billion won in the first half, up 34% from the previous year. In particular, the company achieved record-breaking quarterly results in the second quarter, with sales of 705.7 billion won and operating profit of 65.9 billion won.CEO Jaesang Lee received a total of 792 million won, consisting of a salary of 734 million won and a performance bonus of 58 million won. In contrast, founder Bang Si Hyuk was not included in the list. HYBE explained, "Chairman Bang's compensation for the first half was less than 500 million won, so he was not subject to disclosure." Last year, Bang set his annual salary at '1 won' and received only a bonus of 980 million won. He is known to have maintained this symbolic salary system this year as well. This demonstrates HYBE's unique compensation approach, which distinguishes between the founder's symbolic status and the professional management system.
Ultimately, the compensation structures of the four major agencies reflect each company's management philosophy and strategy. JYP supports global expansion with a performance-based system, SM pursues collaboration and stability by distributing compensation across the management team, YG maintains a tradition that emphasizes the responsibility and influence of producers, and HYBE continues its unique approach by separating the founder's symbolic status from the professional management system.
Experts view this as an indicator of changes in the K-pop industry. An official from a major agency commented, "As the K-pop industry expands globally, compensation systems are being restructured to encompass performance, equity, and symbolic value," adding, "The compensation structure is not just about money; it reveals management philosophy and is a core factor directly linked to investor trust."
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