BTS Contract Renewal Reportedly Cost ₩21 Billion

Reports have been circulating that BTS' contract renewal with its longtime label, BigHit Music, cost about millions of dollars.

Following the news that all seven members of the internationally renowned K-Pop group would be renewing their exclusive contracts, a researcher from Daol Investment & Securities Co Ltd revealed how much money was invested in the new contracts.

"The first contract renewal of BTS in 2018 totaled 7 billion won ($5.2 million)," Kim Hye-young told Korea's Financial News. "Considering the previous renewal case, the exclusive contract is estimated to be more than 21 billion won ($15.65 million). Though the length of the contract was undisclosed, it was assumed to last for about five years, including the military service period.

BTS is expected to continue with its activities by 2025. The researcher claimed that this would be a smart move for HYBE as it would add "stability" to the company's performance as one of its other artists is also expected to enlist in South Korea's mandatory military service in 2024.

"Since SEVENTEEN's military enlistment will begin in 2024, BTS' activities after the second half of 2025 are a factor that adds stability to HYBE's performance," he said, adding that the short-term rise in stock price would happen, thanks to BTS' renewal.

This is the second time BTS opted to renew its contract with BigHit. Back in 2018, the group renewed its first contract, more than a year before it was officially scheduled to end. The K-Pop sensation made its debut in 2013.

As of late, BTS is one of the highest-paid K-Pop acts in the industry. Though its exact net worth has yet to be disclosed, Forbes reported that in 2020, the group had cumulative earnings amounting to $50 million. Meanwhile, Sportskeeda claimed that the value increased from about $120 million to $150 million, most notably before the initial public offering (IPO) of HYBE.

Most of BTS' fortune was earned from its world tours, physical and digital album sales, royalties, streaming, merchandise and brand endorsement deals.

During the Grammy-nominated artist's "Love Yourself" tour in 2019, it was reported that it earned about $170 million. As for its prolific discography, it sold about 39.67 million album copies across the globe. Its best-selling album was "Map of The Soul: 7" in 2020, with 5.05 million copies sold in South Korea alone.

Currently, BTS is on a hiatus to pursue solo projects and complete its mandatory military service in South Korea.