Entertainment Industry Faces Uncertainty Amid National Mourning Period

《Lee Min-kyung's Siren》

Lee Min-kyung from TenAsia sounds the siren on the rapidly evolving entertainment industry. She highlights unseen issues and alerts us to threats and changes surrounding the entertainment world.

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The entertainment industry is bracing for a challenging start to 2025, with major companies like HYBE facing projected declines in performance. Following the December 3 martial law and the national mourning period for the victims of the Jeju Air disaster, the industry is experiencing a slowdown. Events and album releases have been temporarily halted as a mark of respect for the victims.

This cautious atmosphere is reflected in the financial outlooks of major entertainment companies. According to financial information provider FnGuide, HYBE's operating profit consensus for the first quarter of this year is 51.8 billion KRW, a sharp drop from the 60.3 billion KRW forecast a month ago and 76.6 billion KRW three months ago.

YG Entertainment's outlook has also seen a significant decline. The market estimate for their first-quarter operating profit has plummeted from 9.9 billion KRW to 4.9 billion KRW over the past three months, a 50.5% decrease. SM Entertainment's forecast has decreased by 26.6%, from 28.5 billion KRW to 20.9 billion KRW. JYP Entertainment's estimate has dropped by 24.5%, from 39.6 billion KRW to 29.9 billion KRW.

The uncertainty surrounding the first-quarter performance of major entertainment companies is closely linked to the contraction of the advertising market at the start of the year. The aftermath of martial law and the aviation accident has frozen the advertising sector. An advertising industry insider noted, "In such an uncertain external environment, companies are controlling costs, starting with advertising, making the outlook for the first quarter bleak."

Not only advertising but also early-year events are being canceled. Artists are postponing comeback schedules and even halting social media activities, taking a cautious approach. There have been instances where continuing with festivals or social media activities during the national mourning period resulted in negative public reactions.

Various festivals have been canceled following the establishment of the national mourning period. The 'Jeju Shinhwa World Countdown 2025,' which was to feature bands like Jaurim, group AKMU, and singer Lee Moo-jin, has been canceled, along with the 'SeoulConXWorld K-Pop Festival Countdown,' which included artists like Zico, Dynamic Duo, rapper Changmo, and group Billlie.

Singer Cho Yong-pil has postponed his '20th Album Release Commemoration Concert - Daejeon,' which was scheduled for January 4. This concert series began in Seoul last November and was set to continue in Daejeon after stops in Seoul, Daegu, and Busan. Lee Seung-hwan also canceled his '35th Anniversary Concert HEAVEN' in Cheonan, which was planned for the same day.

Singer Lim Young-woong will proceed with his 'Lim Young-woong RE:CITAL' concert from January 2 to 4 as planned. However, ticket holders who do not wish to attend will receive a full refund without cancellation fees.

Additionally, artists preparing for comebacks have postponed album releases and promotional schedules. Groups like IVE, Seventeen's unit BSS, and SHINee's Onew have delayed their comeback promotions until after the national mourning period.

Since the December 3 martial law, the entertainment industry has been in a state of unrest. According to industry insiders, spring events planned after the national mourning period are also on hold. The entertainment sector anticipates that it will take considerable time for political uncertainties to resolve and for the advertising market to recover. An industry insider commented, "We can only hope for uncertainties to be resolved before spring," adding, "The situation in the first half of this year is completely different from what we expected at the end of last year."

Lee Min-kyung, TenAsia Reporter 2min_ror@tenasia.co.kr