[theqoo][EXCLUSIVE] G-DRAGON, LAST YEAR RECEIVED 60 BILLION WON IN SETTLEMENT

Singer G-Dragon (Kwon Ji-yong) was revealed to have received a massive settlement of around 60 billion won (39M USD) from his agency Galaxy Corporation last year. Through aggressive activities such as a world tour and TV appearances, he generated nearly 300 billion won in revenue for the company, resulting in a substantial payout. When additional income like royalties is included, his actual annual earnings are estimated to be even higher.

According to Galaxy Corporation’s audit report disclosed on the 6th, the company’s commission expenses (separate financial statement basis) reached 71.4 billion won last year, an increase of 31 times compared to the previous year. During periods when G-Dragon was inactive, these expenses were only around 800 million to 2.5 billion won.

In the entertainment industry, commission expenses largely consist of settlement payments made to artists. Excluding costs such as legal and PR services included in this category, G-Dragon’s settlement is estimated to exceed 65 billion won.

In response, the agency stated, “Outsourcing costs generated from G-Dragon’s world tour last year were also included under commission expenses.” However, Galaxy Corporation actually processes outsourcing costs under a separate account. Last year, outsourcing expenses reached 94.3 billion won, a 619% increase.

Until the first half of last year, Galaxy Corporation was effectively a one-artist agency centered around G-Dragon. Although they later signed artists such as Kim Jong-kook and Song Kang-ho in the second half, their share of settlement payments is believed to be relatively small. An industry insider commented, “It is known that the revenue scale between G-Dragon and other artists differs by more than 100 times.”

Last year, G-Dragon released his third full-length solo album “Übermensch” and launched aggressive promotions including a world tour, TV appearances, and advertisements. Starting in Goyang, Korea in March, he held 39 shows across 17 cities, attracting approximately 825,000 audience members.

The success of G-Dragon’s world tour had a major impact on Galaxy Corporation’s performance. The company’s consolidated revenue last year reached 298.9 billion won, a 618% increase year-over-year. Management revenue reflecting the world tour surged 859% to 269.5 billion won. During this period, operating profit reached 12.5 billion won, successfully turning the company profitable.