BLACKPINK takes the stage during their world tour at Gocheok Sky Dome in Seoul, in this photo from September 2023. Courtesy of YG Entertainment
By Lee Yeon-woo
Although the sharp depreciation of the Korean currency against the U.S. dollar poses challenges to business operations, some industries, including entertainment and gaming, whose global sales have increased, have seen unexpected profits. The increase in the value of sales converted from US dollars to won contributed to a notable increase in profits.
According to industry sources, on Sunday, entertainment companies are expected to benefit the most from the high exchange rate between the won and the dollar. Their global sales of concert tickets, albums and merchandise are mostly settled in US dollars, putting them in a favorable position.
Among the top four Korean entertainment companies, HYBE has the highest export rate with 63.7 percent, followed by JYP Entertainment with 55.7 percent, YG Entertainment with 47.3 percent and SM Entertainment with 31 percent. .5 percent.
“Trump’s main pledge centers on imposing universal tariffs, but these tariffs do not apply to cultural or content exports,” said Ji In-hae, a researcher at Shinhan Investment & Securities. . “In 2025, major super-IP (intellectual property) BTS and BLACKPINK are expected to make a comeback. With unprecedented large-scale world tours planned, performance indicators and investor sentiment are expected to see significant improvement.”
Large gaming companies, whose sales rely heavily on the global market, are also expected to benefit.
“In a strong dollar environment, gaming companies bear won costs due to domestic labor and benefit from their high share of global sales,” said Lee Jun-ho, an analyst at Hana Securities.
In the third quarter, DoubleU Games derived all of its revenue from the global market. Krafton follows with 90 percent of global sales, SHIFT UP with 85 percent and Netmarble with 77 percent.
Foreign investors are also accumulating shares in these companies. This month alone, they purchased 85.1 billion won from JYP Entertainment, 79.5 billion won from Krafton, and 48.1 billion won from YG PLUS.