Ahead of the BTS concert at Gwanghwamun, light stick prices are swinging. As demand for the concert surges, premium transactions are spreading. Along with controversy that official light sticks are overpriced, the consumer structure that extends to so-called "reselling" and to other merchandise (MD) is also under scrutiny.
According to the entertainment industry on the 20th, light sticks for popular groups BTS, TWICE, aespa, and IVE are sold on each official platform for 47,000–49,000 won. The production cost for light sticks at small and midsize manufacturers was about 10,000 won two years ago, but with advances in wireless control technology and rises in raw material and labor costs, it has now climbed to about 15,000 won. Light sticks combine a plastic exterior with LED and wireless communication functions.
Among fandoms, light sticks are a "must-have" to enjoy concerts. After registering through a dedicated application (app), they sync wirelessly during the show with the venue's control system to deliver various lighting effects. They build a sense of belonging within the fandom and become a "lock-in" device that channels concert consumption. Without the latest official product, concertgoers cannot fully experience the venue's lighting effects.
Because of this, some say entertainment companies are selling light sticks at prices high relative to production costs. With light sticks effectively a necessity to attend concerts and few substitutes available, the pricing structure is one-sided, they say. Some also voice suspicion that the fusion with the artist's intellectual property (IP) allows prices that are high relative to function or quality.
Back-calculating items such as "inventories and consumables purchases" in entertainment companies' audit reports and compiling accounts from industry officials, the purchase cost ratio for MD products including light sticks is about 34%–41% of the retail price.
Applied to light sticks, based on a 49,000 won retail price, about 17,000–20,000 won per unit is set as the supplier price to the manufacturer. On top of that, logistics, distribution, and payment fees add about 5,000–7,000 won, and platform and system operating costs add around 2,500–4,000 won. Including SG&A such as labor and marketing, total costs are estimated at about 29,000–37,000 won. That leaves 12,000–20,000 won per light stick.
An official at an entertainment company said, "It's hard to generate massive revenue from light sticks alone, and we don't even tally separate sales," and added, "We provide a concert-linked experience and then connect consumption to higher-margin products."
With an average margin estimated at 33%, light sticks also serve as a so-called "loss leader." Starting from the light stick, consumption flows to small MD items such as photo cards or apparel and accessories, which have low production costs and margins reaching 50%–70%. MD lineups change frequently, for example selling only for specific concerts or seasons, making it tricky to calculate an average price.
Based on this structure, entertainment companies' MD businesses are growing rapidly. HYBE's MD and licensing revenue last year rose 36% from the previous year (420.2 billion won), and sales at Blue Garrage, the subsidiary handling MD manufacturing and distribution for JYP Entertainment, grew from about 61.8 billion won in 2023 to 90.6 billion won in 2024. SM Entertainment posted 78.1 billion won in MD and licensing revenue in the fourth quarter last year, up 52% from a year earlier, a record high.
As they bulk up through MD, entertainment companies are also drawing criticism for standing by amid market price distortions. The main problem is "reselling," in which individuals secure goods in bulk and sell them with added premiums on secondhand transaction platforms. Ahead of the BTS concert, light sticks priced at 49,000 won are trading for over 300,000 won on secondhand transaction platforms. That is why people say resellers are making more money from light sticks than the manufacturers or entertainment companies.
Multiple entertainment officials explained, "Once a concert or season ends, MD loses its appeal, so it's hard to produce in large quantities," and added, "However, since 'reselling' is hindering fans from enjoying concerts properly, we are seeking alternatives such as adjusting supply volumes."