Ryu Jun Yeol has found a new agency.
Galaxy Corporation announced on July that it has signed an exclusive contract with Ryu Jun Yeol. The company stated, “We will actively support Ryu Jun Yeol so that his outstanding acting skills and artistic capabilities can shine even more on the global stage. We will work together on content, global projects, AI, and IP businesses to create new synergies.”
That same day, CHO Choi Yong Ho of Galaxy Corporation said, “Ryu Jun Yeol is a representative Korean actor who has both strong artistic value and mainstream appeal. By combining physical AI technology with creative content, we aim to expand his new potential into the global market.”
Meanwhile, Galaxy Corporation is also reported to have offered actor Yoo Ah In an agency contract worth at least 5 billion won (approximately $3.7 million), along with additional benefits including cash and stock options.
Singer Taemin, who recently joined Galaxy Corporation, is also reported to have received a contract worth 7 billion won ($4.5 million), including stock options. Ryu Jun Yeol is also expected to sign a contract in a similar structure.
While the contract has not yet been finalized, the fact that Yoo Ah In was offered a substantial sum of ‘5 billion won plus additional benefits,’ considered top-tier in the industry for an actor, is not merely a baseless rumor. In 2023, Galaxy Corporation reportedly paid G-Dragon approximately 10.1 billion won ($6.5 million) in cash and 10 billion won ($6.4 million) in stock options for his exclusive contract. The total of 20 billion won ($12.9 million) received by G-Dragon is considered a record in the entertainment industry.
The exclusive contract period between Galaxy Corporation and G-Dragon is estimated to be around three years, starting from November 2023. This means the contract expiration is approaching. For Galaxy Corporation, which absolutely needs a “super IP” like G-Dragon for its IPO, expanding the company’s scale is crucial. The reason Galaxy Corporation is simultaneously offering substantial contract amounts to artists like Song Kang Ho, Kim Jong Kook, Taemin and those whose contracts are nearing expiration, such as Yoo Ah In, is to facilitate its listing.
Most of these artists are expected to sign contracts with stock options, similar to G-Dragon’s. This creates a win-win situation where their own market value increases when they join Galaxy Corporation. If more stars join, G-Dragon, who holds stock options worth approximately 10 billion won, will also benefit.
Transfer contract fees for stars are reaching new highs annually. Listed company Fantagio also garnered industry attention by reportedly offering Kim Seon Ho a contract worth 2 to 3 billion won ($1.3 million to $1.9 million) plus additional benefits.
The contract amounts offered by Galaxy Corporation to its artists, including G-Dragon, far exceed these figures. However, this raises concerns about the negative impact on the entertainment industry.
Amidst a downturn in the entertainment industry, particularly in the real economy related to artist management and content production, Galaxy Corporation’s actions are leading to an abnormal polarization, inflating the value of only a select few stars. The question remains: what will be the consequences if this bubble bursts?
Over the past 15 years, domestic entertainment companies have been aggressively recruiting star actors to prepare for their IPOs. YG Entertainment, which went public in 2011, offered substantial contract fees and exceptional treatment to top actors to supplement the capabilities of its existing groups, BIGBANG and 2NE1. Actors like Kim Hee Ae, Cha Seung Won, Lee Soo Hyuk and Lee Sung Kyung were part of their roster at the time. After its listing, YG also recruited Kang Dong Won to attract further investment. Word of this exceptional treatment spread throughout the industry.
C-JeS Entertainment also pursued an IPO. Actors such as Sol Kyung Gu, Ryu Jun Yeol, Moon So Ri, Oh Dal Su and Park Sung Woong signed contracts with the company under more favorable terms than their industry peers.
However, about a decade later, the bubble burst, and the companies faced financial difficulties. Both YG and C-JeS stopped their actor management businesses years ago. Neither company currently has a single actor under contract. While aggressively recruiting stars with contract fees far exceeding market standards can boost an IPO and attract investors, it has become a self-defeating strategy in the long run. The abnormal contract structures, including the contract fees and unilateral profit-sharing ratios, have worsened the companies’ financial health.
This is not an isolated issue. One industry insider commented, “Galaxy Corporation’s sole objective is likely its listing. While it is a free market, from the perspective of the health of the content and management industry, it’s difficult to view this positively. Look at the fact that YG, one of the four major entertainment companies, abandoned its actor business. The problem is that this ‘hit-and-run’ strategy for listing only enriches a few stars driven by money and raises the average market value, making it even harder for smaller agencies,” the insider criticized.
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