Galaxy Corp Plans KOSPI Listing at 1 Trillion Won Valuation amid Approaching End of Contract with G-Dragon

Galaxy Corporation is pursuing a KOSPI listing with a corporate valuation of 1 trillion won, but investor concerns are rising because its primary revenue source—the exclusive contract with G-Dragon—is set to expire in the second half of 2026. As the three-year contract, which began in November 2023, approaches its expiration date, the company’s push for a listing without a finalized renewal decision has created significant uncertainty.

The terms of the initial contract with G-Dragon reportedly included a cash deposit of 10.18 billion won along with stock options worth 1 billion won. Three years earlier in 2023, the renewal terms amounted to 1 billion won in cash and 1 billion won in stock options, totaling 2 billion won. Galaxy Corp reported approximately 300 billion won in sales last year, with G-Dragon-related revenue accounting for 75% to 80% of that total.

Combined sales for 2025 reached 298.8 billion won, a 619% surge from 41.6 billion won in 2024. This growth was driven by G-Dragon’s 39 world tour performances across 16 cities in 12 countries globally that year. However, profitability remains limited. Management costs alone amounted to 232.3 billion won, resulting in a cost ratio of 86.2%, while the operating profit margin was only 4.2%. The net profit for the period was 2.99393 billion won.

The sales structure poses substantial risks. 89% of total sales, or 266.8 billion won, were recognized at the time of event performances under a “single-point realization” model, with the vast majority tied to specific events such as G-Dragon’s world tours. Approximately 53.7 billion won, equivalent to 17.97% of total sales, came from a single customer (Company F), which is believed to be a performance promoter or distributor.

Whether a renewal occurs will determine the company’s future profitability. If negotiations resume after the success of the world tours and the achievement of a 1 trillion won valuation, contract terms are likely to increase significantly. Under the current operating profit margin of just 4.2%, rising renewal costs will put severe pressure on profitability. Conversely, a failure to renew the contract would lead to even more dire consequences. Domestic sales of 139 billion won in 2025 and Asian sales of 126.4 billion won both depend on G-Dragon’s world tours, leaving the company at high risk of collapse without alternatives.

The cumulative loss amounts to 125.4 billion won. Even if current revenue levels persist annually, it would take 42 years to fully eliminate these losses.