South Korea’s big four entertainment companies are poised to post combined operating profit topping 1 trillion won ($700 million) this year, as the country’s most valuable franchises – BTS and BigBang – are gearing up for high-profile comebacks, according to a report released Wednesday by Hana Securities Co.
The first half of 2026 is expected to concentrate long-awaited catalysts that had been delayed by artists’ mandatory military service, pandemic disruptions and uneven overseas touring conditions, Lee Ki-hoon, an analyst at Hana Securities, said in a report to clients.
Album releases and large-scale world tours by top acts are expected to underpin what the brokerage described as the strongest earnings cycle the Korean entertainment sector has recorded.
The most immediate impact is expected at HYBE Co., which manages BTS, a global K-pop sensation.
Hana Securities said the group’s full return in March, following the completion of military service by all seven members, is central to the company’s earnings outlook.
HYBE is projected to generate between 1.2 trillion and 1.4 trillion won in revenue in 2026, driven by a new album and a global tour, with its newer artists expected to contribute incrementally to growth.
ARTIST RETURNS BRING PROFITS BACK INTO VIEW
Other entertainment powerhouses are also expected to benefit from the expanding scale of K-pop touring.
Acts affiliated with SM Entertainment Co., JYP Entertainment Corp. and YG Entertainment Inc. have built an annual touring capacity of around two million attendees, according to the report.
Sustained performance on the Billboard Hot 100 has helped support overseas demand, particularly in North America.
Hana Securities highlighted China as a key variable influencing share price movements, noting that entertainment agencies with greater exposure to intellectual property and fan platform businesses could see heightened volatility tied to policy developments.
Seoul and Beijing have been discussing a possible easing of China’s unofficial restrictions on Korean pop culture as part of broader diplomatic efforts to stabilize bilateral ties.
South Korean President Lee Jae Myung and Chinese President Xi Jinping discussed the issue during a meeting in Beijing on Monday, the second summit between the two leaders in three months, according to officials.
Hana Securities said SM Entertainment is particularly sensitive to China-related developments, while continuing to invest in the US market.
JYP Entertainment is expected to maintain steady growth, led by album sales and touring from Stray Kids and Twice.
YG Entertainment, marking its 30th anniversary this year, is forecast to post its strongest results as group activities resume, with BigBang set to return ahead of its 20th anniversary in 2026.
Despite recent market volatility, Hana Securities said valuations across the Korean entertainment sector remain attractive.
Excluding HYBE, the top entertainment stocks are trading at around 20 times projected 2026 earnings, a level the brokerage said does not fully reflect the prospect of record operating profit or the visibility of upcoming releases and tours.
Jennifer Nicholson-Breen edited this article.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source www.kedglobal.com ’
