[BizHanKook] F&F, a fashion conglomerate owning brands like MLB and Discovery, established its subsidiary F&F Entertainment in 2022. At the time, F&F planned to apply the global branding and marketing know-how it had cultivated in the fashion industry to the K-pop sector. F&F Entertainment showed an active interest in talent acquisition, such as by appointing Choi Jae-woo, formerly of Kakao Entertainment, as its CEO. Upon the launch of F&F Entertainment, F&F stated its ambition to “foster K-pop stars who can grow into global lifestyle leaders, using the same expertise that allowed us to build world-encompassing brand fandoms through digital communication.”
However, it is difficult to say that F&F Entertainment has yet secured a distinct presence in the K-pop market. Following the recent conclusion of the girl group ‘UNIS’ activities, the company’s only remaining managed artists are the idol group ‘AHOF’ and a few actors. The company continues to record annual operating losses and faces a weak financial structure, currently in a state of complete capital impairment. Furthermore, the revenue of F&F Entertainment remains negligible compared to the total revenue of F&F. Observers suggest that F&F Entertainment is failing to achieve the growth that was initially expected.
What is the future of F&F Entertainment after the dissolution of UNIS?
F&F Entertainment debuted the girl group ‘UNIS’ in 2024. UNIS consisted of members selected through the SBS audition program ‘Universe Ticket.’ UNIS gained recognition by winning awards such as the ‘New Rising Star Award’ at the 2024 TikTok Korea Awards and the ‘K-Pop Singer Award’ at the Korea Culture and Entertainment Awards.
However, UNIS officially ended its activities this September. F&F Entertainment announced, “UNIS’s exclusive management contract with us ended as of September 26,” adding, “We have continuously discussed the contract duration and future activity directions with the members, and after sufficient consultation, we ultimately decided to conclude official activities as a full group of UNIS in accordance with the planned contract term.”
As UNIS was a project girl group, the end of their activities was somewhat anticipated. Their activity period had already been set during the broadcast of ‘Universe Ticket.’ Nevertheless, some fans are expressing disappointment as they had hoped for a contract extension by F&F Entertainment. UNIS even released and promoted the digital single ‘Sky and Star Land’ on September 8, just before their contract expired.
With the conclusion of UNIS’s activities, only the idol group ‘AHOF’ remains under F&F Entertainment. Like UNIS, AHOF is composed of members selected through an SBS audition program, ‘Universe League.’ AHOF is a boy group that debuted in 2025, and their contract is known to be for four years. If the contract is not extended, there is a possibility that their activities will end in 2029.
While AHOF has achieved milestones such as taking first place on music programs, it is difficult to say they have established themselves as a top-tier popular group. Although F&F Entertainment continues to hold auditions, there has been no news of any new idol group debuts yet. It is difficult to conclude that F&F Entertainment is exerting significant influence in the K-pop market. Given that four years have passed since its launch and considering the company is highly recognized in the fashion industry, some critics argue that the performance has fallen short of expectations.
What is the situation at the parent company, F&F?
F&F Entertainment is also showing poor performance in terms of financial results. It recorded an operating loss of 8.7 billion won last year and continues to be in the red, posting an operating loss of 2.1 billion won in the first half of this year. While the deficit has shrunk compared to the previous year, the problem is that revenue is also declining. F&F Entertainment’s revenue fell by approximately 38%, from 1.9 billion won in the first half of last year to 1.2 billion won in the first half of this year. Considering that F&F’s total revenue for the first half of this year was 960.5 billion won, the revenue scale of F&F Entertainment remains insignificant.
Given the poor profitability, the financial structure is also fragile. As of the end of June this year, F&F Entertainment’s total capital was negative (-) 27.8 billion won, indicating a state of complete capital impairment. As of the same date, total assets stood at 9.5 billion won, while total liabilities amounted to 37.3 billion won. If the financial situation worsens further, assistance from the parent company, F&F, may be required.
The issue is that the outlook for F&F itself is not entirely positive. Hyung Kwon-hoon, a researcher at SK Securities, analyzed F&F, stating, “Since the beginning of this year, the momentum for revenue in China has remained in a weak phase due to local inventory adjustments for the MLB China business,” and added, “Due to the strengthening of the Korean won, the yuan exchange rate will decrease starting from the fourth quarter of this year compared to the same period last year, acting as a headwind for revenue and profitability.” Of F&F’s 960.5 billion won revenue in the first half of this year, 480.7 billion won—nearly half—came from the Chinese market.
As of now, there is no major turning point in sight for F&F Entertainment. Of course, there is a possibility that AHOF’s popularity could rise and the group could grow into a key revenue source for the company. However, since AHOF’s contract is known to expire in 2029, there is a clear need to establish a foundation for mid-to-long-term growth, such as extending contracts or discovering new idols.