The Agency That Helped Make BTS Global Stars Is Investing Big In Its Rival

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Sometimes competitors in any industry stay far away from one another, doing everything they can to differentiate themselves from their closest competitors in order to gain market share. In South Korea, two firms are coming closer together in a move that should benefit both in several different ways.

News broke today (Wednesday, January 27) that Big Hit Entertainment will invest a very large sum of money in what may be its biggest competition, YG Entertainment GDEN . According to reports cited by Variety, the former is slated to hand over an incredible $63 million, or about ₩70 billion.

Big Hit Entertainment is best known as the management agency that helped bring BTS to the masses, first in South Korea, and then in the rest of the world. The group has been a top-seller in their home country for many years now, but only in the past few have they reached the highest areas of charts in markets like the U.S., U.K., and so on. In addition to that beloved septet, the company also works with fellow K-pop titans like TXT (Tomorrow X Together) and several BTS members who have released music on their own, including RM, Suga (under that name as well as the moniker Agust D) and J-Hope.

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YG Entertainment has also created and launched several highly-successful musical acts that have made an impressive impact all around the world, with names like Blackpink, Treasure and Big Bang being featured on their roster. The firm is also known for managing Psy when his hit “Gangnam Style” helped kick off the K-pop craze that’s more intense now than ever before.


Big Hit Entertainment’s investment reportedly buys it a nearly 18% stake in one of YG Entertainment’s subsidiaries. It marks the company’s first major investment since going public late in 2020 to much fanfare.

Both companies get something worth quite a lot of money from the deal, with YG reportedly helping its rival with merchandising and distribution, while Big Hit will at some point begin allowing YG’s roster to use it’s incredibly popular platform Weverse, which serves as both a social media outlet and storefront of sorts. Both firms will see upticks in revenue and sales from a variety of sources, and in the coming years, this move could end up being quite lucrative for all involved, even despite the hefty sum required in the first place.

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