The combined operating profit of domestic entertainment companies is analyzed to reach 1 trillion won by 2026. Researcher Ki-hoon Lee of Hana Securities stated in a report released on January 7 that the simultaneous comeback of group BTS and Big Bang, celebrating their 20th anniversary next year, is a major factor.

The researcher explained, "The first half of this year is a period when the unprecedented momentum that has been awaited throughout the past year will manifest." He added, "Groups such as Black Pink, TWICE, and Stray Kids, which have secured positions within the top 50 on the Billboard HOT100, have all grown to world tour scales of around 2 million attendees. If they win at the Grammy Awards, significant benefits are expected, and as many teams expand their activities in North America, K-pop's high growth will continue."

However, the researcher pointed out that recent issues in China have increased stock price volatility. He said, "Except for HYBE, the expected price-to-earnings ratio (P/E) for 2026 is trading around 20 times, so the valuation attractiveness is sufficient." He emphasized, "Based on record-high performance, low valuation, and very imminent momentum, continuous overweighting is recommended."

Looking at each entertainment company, HYBE stated that BTS's comeback with a full group album for the first time in four years this spring is the most important. The researcher analyzed, "With the March album release and an unprecedented world tour, annual sales are expected to range from 1.2 trillion to 1.4 trillion won, along with record-high operating profit."

BTSSM Entertainment stated, "There will be continuous investment in the North American region, which has high growth potential this year." The company analyzed, "With the easing of the THAAD restrictions, in addition to the strong Chinese fandom for major intellectual properties (IP), leverage through its subsidiary DearU is possible, making stock price volatility the highest depending on China-related issues."

JPY Entertainment predicted, "Steady growth will continue," noting that "Stray Kids and TWICE have secured positions between 4th and 50th on the Billboard HOT 100, enabling tours of around 2 million attendees annually, which is expected to continue expanding."

YG Entertainment mentioned that this year marks YG's 30th anniversary and Big Bang's 20th anniversary, with record-high performance expected. However, operating profit for the fourth quarter is forecasted to fall short compared to HYBE, SM Entertainment, and YG Entertainment. The researcher explained, "HYBE's sales are in line with continuous forecasts, but large expenses related to new businesses and rookie group debuts will be reflected again, leading to underperformance."

SM Entertainment and YG were evaluated as having weaker-than-expected album sales. The researcher added, "This year, K-pop's global growth will accelerate further, and the performance of entertainment companies will also show positive results accordingly."

In conclusion, the domestic entertainment industry is analyzed to record positive performance in 2026 due to various factors. Each company is exploring diverse strategies to strengthen competitiveness in the global market, and future growth is anticipated.