In a recent development, YG Entertainment (YG) has come forward to refute the swirling speculations surrounding the hefty contract renewal fee allegedly offered to the members of BLACKPINK. The statement, issued on March 22, KST, aimed to clarify misconceptions regarding the reported astronomical figures.
The speculation arose from the disclosure of financial information through the Financial Supervisory Service’s electronic disclosure system business report. This report revealed that YG had amassed a substantial sum of approximately ₩41.2 billion (approx Rupees 2,55,80,00,000) in exclusive down payment for intangible assets in 2023, reports Koreaboo.
Typically, in the entertainment industry, such down payments for an artist’s exclusive contract are classified as intangible assets and are recognised as expenses by applying a flat-out rate method based on the contract period. Consequently, this disclosure led to speculations that the funds were disbursed to BLACKPINK members for the renewal of their contracts, with each member allegedly receiving around ₩10.0 billion (approximately Rupees 61,86,00,000).
However, YG has moved swiftly to dispel these notions, asserting that the reported sum was not exclusively allocated to BLACKPINK. A spokesperson for the company clarified that over the previous year, they had engaged in the renewal of multiple intellectual property (IP) contracts and the signing of new ones, all of which were encompassed within the reported expenses. While specific details regarding the BLACKPINK contract were not disclosed, YG confirmed that the entire sum was not earmarked solely for this purpose, reports Koreaboo.
“Last year, there were renewals and new contracts not only for BLACKPINK but also for many other intellectual properties. Although we cannot disclose all contract details, the reported amount cannot be considered as a down payment solely for BLACKPINK,” a YG representative told Yonhap News in response to queries.
The disclosure of YG’s substantial investment raised eyebrows, particularly in light of the exclusive group contracts signed with all four BLACKPINK members in December.
Meanwhile, all four members of girl group BLACKPINK renewed their contract with YG last year and they have decided to manage their solo careers separately.
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