You know you’ve made it when news of contract negotiations with your management company makes international news and causes ripples on the stock market. And such was the situation that K-Pop stars Blackpink found themselves in, as the four members of the girl group renewed their contract with agency YG on Dec. 5.
To recap: the group’s existing contracts with the South Korean entertainment agency YG Entertainment had expired earlier this fall, and as the weeks went by with no announcement of a renewal, the company’s stock began to experience dips, at one point dropping 13% in a single day when South Korean media reported speculation that several members of the group would not renew with the company. Upon news that the group had re-signed this week, YG’s stock price surged by 29%.
Blackpink arrives on the red carpet of the 2022 MTV Video Music Awards.
In a statement announcing the group’s new contract, YG founder Yang Hyun Suk said: “We are pleased to continue our relationship with Blackpink… Blackpink will continue to do its best to shine even brighter in the global music market as an artist representing not only our company but also K-Pop.”
In the world of Korean pop, fledgling pop stars typically sign initial contracts with management companies, which then form groups and shepherd their development and early career trajectories. Several chart-topping groups have gone on to break up upon the expiry of those initial contracts: hence the trepidation when Blackpink’s renewal was not forthcoming. The group — consisting of members Jisoo, Lisa, Jennie and Rosé — was first assembled by YG in 2016.
King Charles III gives Blackpink honorary Order of the British Empire medals in November 2023.
And the loss of Blackpink could have been huge to the company’s bottom line. Along with BTS, Blackpink have been among the most visible leaders of the current K-Pop wave that has made global superstars of Korean artists. Earlier this spring, the group became the first Asian act to headline California's Coachella Valley Music and Arts Festival, sharing top billing on the festival poster with Bad Bunny and Frank Ocean.
The group’s debut LP, The Album, reached No. 2 in both the US and the UK in 2020, with 2022 follow-up Born Pink reaching No. 1 in both countries. According to YG, Blackpink’s most recent world tour was attended by 2.1 million spectators. In November, King Charles III gave the group’s four members honorary Order of the British Empire medals.
Though Blackpink is the agency’s best-known current artist in the U.S., YG also represents veteran 1990s K-Pop act Sechs Kies, as well as boy band Treasure and emerging girl group BabyMonster. Previous notable acts on the company’s resume include solo star Seven and group 2NE1 — the latter recently made headlines when they staged a surprise reunion at the 2022 Coachella Festival, six years after last performing. But the company’s most notable alumnus is rapper Psy, whose surprise 2012 hit “Gangnam Style” became a worldwide smash—it was the first video to surpass a billion views on YouTube—setting the stage for South Korea’s growing global pop dominance in the decade to come.
