Thanks to the global K-pop boom, three major management agencies -- Hybe, SM Entertainment and YG Entertainment -- earned record-high profits last year. Shown are members of the K-pop sensation BTS on Nov. 21, 2021, after winning three honors including Artist of the Year at the American Music Awards in Los Angeles. (Yonhap News)

By Elias Molina and Yoon Sojung

The global boom in the K-pop industry led to record-high business performances last year by Korea's top three management agencies: Hybe, SM Entertainment and YG Entertainment.

Data released by the Financial Services Commission on Feb. 24 found that Hybe, which manages K-pop sensation BTS, recorded sales of KRW 1.25 trillion last year, up 58% from 2020.

The company's operating profit also rose 30.8% to KRW 190.3 billion thanks to strong sales of BTS albums and tickets for the group's Los Angeles concerts. Hybe is thus Korea's first entertainment company to break KRW 1 trillion in annual sales.

SM, whose clients include NCT and Aespa, also posted record-high sales of over KRW 700 billion last year. The company's annual turnover reached KRW 701.5 billion, up 21%, and its operating profit KRW 68.5 billion, up an astounding 954.1%.

Growth of album sales led to these record-breaking performances. SM sold 17.62 million albums last year, around double its figure in 2020. In a first for the company, its board of directors decided on a dividend of KRW 200 per share.

YG, the company promoting Big Bang and BLACKPINK, also posted record highs last year in sales (KRW 355.6 billion, up 39.3%) and operating profit (KRW 50.6 billion, up 370.4%). YG said increased turnover from its ongoing and new projects helped boost such profit.

K-pop album purchases also helped the three companies' record performances despite attendance limits on concerts due to COVID-19. Brisk activity around the globe by leading K-pop acts such as BTS, NCT and BLACKPINK also had a positive effect on sales growth.

eliasmolina@korea.kr