There are concerns over the heavy reliance on Big Bang and BLACKPINK due to the lack of new artists.
The success of the new boy group set to launch in the second half of the year will determine YG's future direction.
[TVDaily Reporter Kim Ji-Ha] YG Entertainment has successfully recorded a turnaround with 5.454 trillion KRW in revenue and 713 billion KRW in operating profits in 2025. This achievement can be attributed to BLACKPINK's world tour, TREASURE's Asian tour, and BABYMONSTER's activities. However, skepticism about YG's structural integrity remains in the market.
The central concern for YG is not merely about performance but rather the absence of flagship artists and the struggles with generational transition. Currently, the company is heavily reliant on Big Bang and BLACKPINK. While they possess strong IPs, there are no emerging idols ready to take their place. Industry discussions highlight that while past stars abound, there is a lack of artists to represent the present.
Recent developments in YG's artist lineup illustrate this gap starkly. AKMU left without renewing contracts last year, while WINNER faces limitations due to Song Min-ho's military service issues. TREASURE has showcased growth by attracting 150,000 attendees during their Japan tour, but it may be premature to consider them as 'icons of the 4th generation'. BABYMONSTER is expanding its fandom but still grapples with its relationship to BLACKPINK. The uncertainties surrounding Song Min-ho's military matters and YG's producer Yang Hyun-suk being entangled in legal risks amplify these concerns.
YG has achieved fiscal recovery, but it must also address the pressing challenge of generational transition. The ongoing prominence of BLACKPINK and Big Bang poses both a blessing and a challenge for YG. With a new boy group launch planned for the second half of the year, their success will be critical to defining YG's future trajectory.
YG Entertainment remains heavily reliant on Big Bang and BLACKPINK. This is thanks to the strong brand power and influence these two groups hold. However, the lack of emerging artists poses a serious risk to the company's sustainability.
Generational transition is a crucial aspect that directly impacts a company's survival in the modern music industry. YG must discover and nurture new artists effectively, as they represent the future potential to drive the business. Even if financial performance improves repeatedly, failing to establish this as a foundation for sustainable growth could lead YG back into crisis.
To expand its fandom and venture into global markets, innovative strategies are essential. YG needs to strengthen its brand image while diversifying its operations and creating an optimal environment for emerging artists to thrive. Simply relying on familiar IPs will not last long; there is a growing need to meet the changing expectations of fans.
This article is KOSTAR’s reinterpretation of a story originally reported by TVDaily.
Photo: TVDaily
