Why are K-pop stars betting on Galaxy Corp.?

As Galaxy Corp. continues to sign high-profile artists who have newly become free agents, industry officials are questioning why established names are joining a relatively unknown agency branding itself as an “AI entertainment technology company.”

Singer Kwon Eun-bi, who rose to fame through project girl group Iz*One, is reportedly preparing to join Galaxy Corp., just three weeks after the company signed Taemin, formerly of boy band SHINee.

The company’s current roster includes pop icon and actor G-Dragon, actor Song Kang-ho and TV personality Kim Jong-kook.

Industry insiders say the answer likely lies in contract terms.

“To attract established artists, the contract conditions have to be favorable,” a senior manager at a major K-pop agency said. “That usually means a large signing bonus and a higher revenue share weighted toward the artist.”

In the K-pop industry, upfront signing bonuses — often recoupable — are commonly used to secure artists, similar to advances in the Western music business, though contracts tend to be broader and longer-term.

In Kwon’s case, while not yet confirmed, some sources claim Galaxy Corp. offered a signing bonus two to three times greater than those proposed by conventional agencies. That may explain her decision to leave Woollim Entertainment after more than a decade.

The company’s deal with G-Dragon is said to be even more unconventional. According to local reports in June 2025, the artist received a 20 billion won ($13.3 million) signing bonus, with roughly half structured as stock options, representing just over a 2 percent stake in the company.

Galaxy Corp. is aiming for a US listing this year, and market observers say G-Dragon could see his share value double if the company successfully goes public.

Interest from global capital markets has already emerged. Senior officials from Nasdaq and the New York Stock Exchange visited Galaxy Corp. last month to assess its potential for listing.

Another notable feature of G-Dragon’s contract is its structure. Rather than being tied to a fixed time period, the deal is reportedly based on the completion of 100 performances.

“Typically, contracts are based on a set duration, with a certain number of albums and tours included,” an official from another major label said. “But G-Dragon’s deal is said to be based on performance count — including concerts, fan meetings, exhibitions and international festivals.”

Industry officials say the company’s aggressive recruitment and generous payouts are ultimately tied to its priority of going public.

They added that Galaxy Corp. lacks the basic infrastructure typically required of a management agency and appears to have little consistency in its artist acquisitions.

“Galaxy Corp. does not have the fundamental infrastructure expected of a management company,” an executive at a major entertainment agency said. “There is no clear consistency in the artists it signs. If the goal were to generate revenue through performances, it would not have signed artists like Taemin or Kwon Eun-bi.”

“From the moment it signed G-Dragon, there has been widespread speculation that its real goal is an IPO rather than artist management,” the executive added.