South Korea\u2019s big four entertainment companies are poised to post combined operating profit topping 1 trillion won ($700 million) this year, as the country\u2019s most valuable franchises \u2013 BTS and BigBang \u2013 are gearing up for high-profile comebacks<\/a>, according to a report released Wednesday by Hana Securities Co.<\/p>\n The first half of 2026 is expected to concentrate long-awaited catalysts that had been delayed by artists\u2019 mandatory military service, pandemic disruptions and uneven overseas touring conditions, Lee Ki-hoon, an analyst at Hana Securities, said in a report to clients. <\/p>\n 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.<\/p>\n The most immediate impact is expected at HYBE Co., which manages BTS, a global K-pop sensation. <\/p>\n Hana Securities said the group\u2019s full return in March<\/a>, following the completion of military service by all seven members, is central to the company\u2019s earnings outlook. <\/p>\n 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.<\/p>\n ARTIST RETURNS BRING PROFITS BACK INTO VIEW<\/strong><\/p>\n Other entertainment powerhouses are also expected to benefit from the expanding scale of K-pop touring.<\/p>\n 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. <\/p>\n Sustained performance on the Billboard Hot 100 has helped support overseas demand, particularly in North America.<\/p>\n 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. <\/p>\n Seoul and Beijing have been discussing a possible easing of China\u2019s unofficial restrictions on Korean pop culture as part of broader diplomatic efforts to stabilize bilateral ties<\/a>.<\/p>\n 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 <\/a>in three months, according to officials.<\/p>\n Hana Securities said SM Entertainment is particularly sensitive to China-related developments, while continuing to invest in the US market.<\/p>\n
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