MANILA - The planned initial public offer of Big Hit Entertainment, the agency behind K-pop sensation BTS, is likely to become a success as the Korean wave appreciation from the global market rises, a Korean-based agency said Wednesday.
Initial public offer (IPO) of companies engaged in the entertainment business in South Korea are becoming more of "the rule, and less and less rare" while their stocks are seen as some of the "best performing" in the country, said DFSB Kollective president Bernie Cho.
DFSB Kollective is a Seoul-based creative agency that works with music labels for distribution.
"As much as people are fascinated with K-pop music, more and more people worldwide are more interested now in K-pop the business model," Cho said.
"IPOs are not exemptions...Part of the IPO process involves the founders giving shares to many of the original artists who helped build companies to where they’re at," he added.
The Korean wave "is a very good business," Cho said.
In 2019, Big Hit Entertainment generated about half a billion dollars in revenue through the success of BTS. In August, the group made history with the launch of its first all-English single "Dynamite."
South Korea's Ministry of Culture on Monday said the single "Dynamite," which was released worldwide could generate over $1.4 billion for the South Korean economy and create thousands of new jobs.
Aside from direct sales, other related items such as cosmetics and food items are likely to surge due to the phenomenal all-English hit song, the study showed, which analyzed sales, Google trends and data from customs and the central bank of Korea.
Pop-culture products are the "third largest export" out of Korea and the second fastest growing export from the country, Cho said.
“Many K-pop agencies and entertainment companies for that matter are actually publicly traded stocks...One of the things about Korean wave it looks good, it feels good and it’s actually very good business," Cho said.
-- with reports from Agence France-Presse