[THE INVESTOR] Big Hit Entertainment said on Oct. 18 that seven-member K-pop boy band BTS that is making waves globally has renewed its contract.
“We signed a seven-year contract with BTS based on our existing trust and affection,” Big Hit Entertainment informed its shareholders.
The band that is topping Billboard charts had earlier signed a seven-year contract with Big Hit Entertainment in 2013. The members still had a year left before the original contract ends but decided to extend the contract earlier, which is unusual in the Korean entertainment industry.
The company added that it will strengthen its team that exclusively supports BTS, which has over 100 employees, and also provides systematic support and investments.
Big Hit was established in 2005 by CEO Bang Si-hyuk, who worked for JYP Entertainment. He recently announced that he is mulling a possible initial public offering.
Industry sources say that Big Hit Entertainment’s market value is likely to top 2 trillion won (US$1.85 billion) when it goes public, since its contract renewal with BTS was one of the key factors that can affect the company’s valuation.
The fast-rising boy band became the first K-pop group to top the US Billboard 200 chart in May with its new album “Love Yourself: Tear.” Due to its outstanding performance, Big Hit’s revenue and operating profit this year is expected be around 230 billion won and 83 billion won, respectively.
By Song Seung-hyun (email@example.com)