“Windfall for Entertainment and Gaming Firms: Profiting from the Weak Won”

BLACKPINK performs on stage during its global tour at Gocheok Sky Dome in Seoul, in this September 2023 photograph. Courtesy of YG Entertainment

By Lee Yeon-woo

Despite the marked depreciation of the Korean won against the U.S. dollar presenting difficulties for business operations, several sectors, notably entertainment and gaming, with enhanced international sales have experienced unexpected advantages. The increased worth of sales converted from USD to won has led to a significant uplift in profits.

As per industry insiders, on Sunday, entertainment firms are anticipated to gain the most from the elevated won-dollar exchange rate. Their international sales in concert tickets, albums, and merchandise are predominantly settled in U.S. dollars, positioning them favorably.

Among the four major entertainment corporations in Korea, HYBE reports the highest export proportion in sales at 63.7 percent, followed closely by JYP Entertainment at 55.7 percent, YG Entertainment at 47.3 percent, and SM Entertainment at 31.5 percent.

“Trump’s principal promise revolves around implementing universal tariffs; however, these tariffs are not applicable to cultural or content exports,” stated Ji In-hae, a researcher at Shinhan Investment & Securities. “In 2025, BTS and BLACKPINK, the two leading super IPs (intellectual properties), are anticipated to make their comebacks. With unprecedented large-scale world tours planned, both performance indicators and investor sentiment are likely to experience remarkable enhancement.”

Prominent gaming firms, which heavily depend on the global market for sales, are also forecasted to gain advantages.

“In a strong dollar climate, gaming companies incur expenditures in won thanks to domestic labor while profiting from their substantial share of international sales,” mentioned Hana Securities analyst Lee Jun-ho.

In the third quarter, DoubleU Games generated all its revenue from the international market. Krafton closely followed with the second-highest global sales at 90 percent, SHIFT UP at 85 percent, and Netmarble at 77 percent.

Foreign investors are also amassing shares in these companies. Just this month, they net purchased 85.1 billion won in JYP Entertainment, 79.5 billion won in Krafton, and 48.1 billion won in YG PLUS.