The 85.5 Billion Won Revenue Created by PLAVE... How Tech Startup VLAST Became an Entertainment Agency

The virtual idol PLAVE is no longer just a popular character online. Last year, they sold over 1 million copies of two consecutive albums and even sold out their concert at the Gocheok Sky Dome. The annual revenue of VLAST, the company that created PLAVE, also exceeded 85.5 billion won. VLAST's revenue in 2025 was 85.51 billion won, an 88.4% increase from 45.39 billion won in the previous year. Operating profit more than doubled from 9.94 billion won to 20.2 billion won, and net income also increased from 10.07 billion won to 19.37 billion won. The operating profit margin rose from 21.9% to 23.6%. This revenue scale is comparable to that of mid-sized entertainment companies in Korea. Last year, VLAST's revenue was similar to CUBE Entertainment's 87.2 billion won, and it was higher than WAKEONE's 81.0 billion won and SOURCE MUSIC's 77.8 billion won. It ranks 12th in revenue among 30 domestic entertainment companies.

Two Million-Seller Albums Just Last Year

Debuting in March 2023, PLAVE is a five-member virtual boy group consisting of Yejun, Noah, Bambi, Eunho, and Hamin. Although webtoon-style characters appear on the screen, it is not an AI singing and conversing. Actual members handle the singing, dancing, and conversations, and motion capture and real-time graphics technology are used to translate this into the movements and expressions of the characters. It is also not a method of playing pre-made videos. During live broadcasts, members can read fans' comments and answer on the spot or perform songs and dances. VLAST has developed technology that connects motion capture data with Unreal Engine and calibrates character body collisions and foot placements in real-time.

PLAVE's popularity is most evident in their album sales. Their 3rd mini-album 'Caligo Pt.1', released in February 2025, recorded a first-week sales volume of 1,038,308 copies. The first-week sales of their debut album were approximately 27,000 copies. In less than two years, the first-week sales increased by about 38 times. Their 2nd single album 'PLBBUU', released in November of the same year, also surpassed 1.09 million copies in first-week sales. In last year alone, two million-seller albums were produced.

The concert venues have also grown larger. After performing for three days at the KSPO Dome in Olympic Park, Seoul in August of last year, they held a two-day encore concert at the Gocheok Sky Dome in November. Both concerts were sold out. On September 12-13, they will kick off their first world tour at the Incheon Munhak Stadium Main Stadium. This marks the first standalone stadium concert by a virtual idol.

From 750 Million Won to 85.5 Billion Won in Revenue in 3 Years

VLAST was established in January 2022, spinning off from an in-house venture at MBC. CEO Lee Sung-goo and Vice CEO Yoon Chang-hee participated in the production of the VR documentary 'Meeting You' and the variety show 'Dunia', which utilized a game engine, during their time at MBC. At the time of its founding, VLAST was closer to a company developing virtual characters and real-time broadcasting technology.

In its first year of establishment, 2022, revenue was merely 750 million won. The operating loss and net loss were 1.19 billion won each. Based on the audit report, revenue in 2023 increased to 11.42 billion won, turning a profit with an operating income of 1.86 billion won. It recorded a revenue of 45.39 billion won and an operating profit of 9.94 billion won in 2024, and a revenue of 85.51 billion won and an operating profit of 20.2 billion won last year. Over the three years from 2022 to 2025, revenue increased by approximately 113 times. This is the result of VLAST creating its own idol with the technology instead of supplying it to other companies, and directly owning the PLAVE IP.

Last year's goods revenue was 56.79 billion won, accounting for 66.4% of total revenue. Services revenue was 28.72 billion won. Although specific items were not disclosed, it appears that sales of albums and official merchandise contributed significantly to the increase in goods revenue. Inventory assets also more than doubled from 1.78 billion won to 3.72 billion won. Costs have also shifted in line with the entertainment business. Last year, outsourcing service expenses were 23.16 billion won, goods production costs were 19.7 billion won, and sales commissions were 7.98 billion won. Combined, these three items make up 77.9% of the total operating expenses.

Goods production costs correspond to 34.7% of goods revenue, and outsourcing service expenses correspond to 80.6% of services revenue. However, since the outsourcing service expenses may include costs related to album and concert production, it is difficult to definitively consider these as the cost ratio for each respective sector. The number of employees has also increased. According to employment data, the number of workers, which was around 40 in the second half of 2023, surpassed 100 entering 2026 and was recently tallied at approximately 105. It appears that personnel for artist planning, album and merchandise production, and concert operations have been added to an organization that was originally centered around technology developers.

A Company That Received Investment at 80 Billion Won Now Presents an 800 Billion Won Valuation

Changes in VLAST are also evident in its investment history. It is estimated that they received a 2.4 billion won investment from MBC and IPX in 2022. The estimated corporate valuation at the time was 14.6 billion won. Subsequently, they attracted a 2 billion won investment from DSC Investment and Schmidt, pushing the estimated corporate valuation past 20.0 billion won.

In March 2024, after PLAVE became a hit, a 4.0 billion won paid-in capital increase took place. HYBE invested 3.0 billion won, and comparing the investors disclosed at the time with the number of shares issued, it is calculated that the remaining 1.0 billion won was invested by YG PLUS. The post-money corporate valuation at that time was evaluated at approximately 80.0 billion won.

VLAST is currently pursuing another round of investment. In the investment industry, it is reported that corporate valuations of approximately 800.0 billion won for new shares and about 600.0 billion won for old shares sold by existing shareholders have been proposed. This means the valuation based on new shares has increased tenfold compared to the time of HYBE's investment in 2024. However, the transaction structure and investment amount have not yet been finalized. VLAST's new corporate valuation will only be confirmed once investors actually accept that price and the transaction is closed.

Increasing Transactions with HYBE and Operating Entities in Japan and Vietnam

HYBE has a relationship that goes beyond being a simple financial investor. Last year, VLAST generated 3.89 billion won in revenue from HYBE and its subsidiaries. This is a significant increase from 110 million won the previous year and accounts for 4.6% of its total revenue. Although MBC, IPX, and HYBE each hold stakes of less than 20%, they possess the right to appoint directors. VLAST has also classified them as entities exercising significant influence over the company.

Their overseas expansion is also not just in the preparatory stage. VLAST has 100%-owned subsidiaries in Japan and Vietnam. Last year, it made additional investments of 290 million won into the Japanese entity and 580 million won into the Vietnamese entity. The amount purchased from the Vietnamese entity also stood at 1.16 billion won. According to special accounting treatments for small and medium-sized enterprises, consolidated financial statements or the equity method were not applied, so the financial status of overseas entities does not appear separately in the main earnings figures.

Last year's cash flow from operating activities was 22.72 billion won. However, this includes a cash inflow effect of 6.42 billion won resulting from an increase in accounts payable and accrued expenses. Cash may flow out at the time these costs are actually paid.

VLAST's 2025 performance confirmed that virtual idols have grown into a business capable of generating 80.0 billion won in annual revenue and 20.0 billion won in operating profit. The process of a company that originally developed real-time graphics technology transforming into an entertainment agency that produces albums and merchandise and holds large-scale concerts was also revealed through the numbers.

Now, attention is focused on where the newly sought investment funds will be spent. The key lies in whether they will further expand the revenue concentrated on a single team, PLAVE, overseas, or if they will launch a second artist. The funds needed for the redemption of preferred stock and the exercise of stock options must also be considered. The corporate valuation of 800.0 billion won will only be evaluated by the market after the investment attraction is completed.