K-pop industry expected to post record earnings in 2026 as BTS, BigBang return

K-pop boy band BTS / Courtesy of HYBE

The Korean entertainment industry is expected to post record-high earnings in 2026 as both BTS and BigBang return to full-group activities, analysts said Friday.

Hana Securities analyst Lee Ki-hoon said in a report that with BTS planning to resume full-group activities next year, revenue is likely to match the combined sales of YG Entertainment and JYP Entertainment.

Lee also highlighted strong expectations for a potential full-group comeback by BigBang to mark the 20th anniversary of their debut.

“Should BTS and BigBang resume activities at the same time, it would naturally drive record-breaking results for the overall K-pop industry,” Lee said. “Maintaining a strategy of gradually increasing exposure remains advisable until clear performance results are observed.”

Specifically, the analyst suggested that investment in HYBE, the K-pop powerhouse behind BTS, should continue to be scaled up until its market capitalization reaches 15 trillion won ($10.5 billion). Currently, HYBE’s market cap stands at around 11 trillion won.

BigBang performs at the 2024 MAMA Awards at the Kyocera Dome in Osaka, Japan, Nov. 23, 2024. Courtesy of Mnet

Hyundai Motor Securities analyst Kim Hyun-yong noted that BTS has been warming up for their full-group comeback through BTS Movie Weeks and is likely to sustain fan enthusiasm with additional pop-up store events ahead of the anticipated 2026 world tour announcement toward the end of the year.

BTS Movie Weeks, held from Sept. 24 to Oct. 5, screened four concert films in more than 2,500 theaters across 65 countries.

“The 2026 BTS world tour, scheduled from May to December, is expected to include 65 shows and attract about 4 million attendees. While the total number of shows may be slightly reduced, the average audience per show is not expected to drop significantly below 60,000,” Kim said. “Starting from the second quarter of next year, when the tour begins, quarterly operating profit is expected to reach around 100 billion won.”

Hana Securities raised its target price for YG Entertainment by 12 percent to 145,000 won, while Hyundai Motor Securities upgraded HYBE’s target price from 350,000 won to 380,000 won.

On Friday, YG Entertainment shares closed at 99,600 won, up 1.84 percent from the previous session, while HYBE shares ended at 272,500 won, rising 1.87 percent.

The KOSPI finished at 3,610.49, gaining 61.28 points, or 1.73 percent.