The KBO is considered a money pit of passion, but the books show it's not such a whiff

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The KBO is considered a money pit of passion, but the books show it's not such a whiff

Published: 29 May. 2025, 15:57 Updated: 03 Jun. 2025, 17:03

Audio report: written by reporters, read by AI

Fans watch a KBO game between the Hanwha Eagles and Lotte Giants at Daejeon Hanwha Life Ballpark in Daejeon on May 25. [YONHAP]

Most Koreans know the basics of baseball in Korea: running a team costs more than it makes, it's not related to the owning company's performance and is nothing more than the chairman's expensive hobby.

Or is it?

The sport is all the hype in Korea. Last year, the KBO surpassed 10 million spectators for the first time. This year, the surge continues as teams like Lotte and Hanwha draw sellout crowds.

Out of 20 top conglomerates in Korea, eight of them manage professional baseball clubs. And out of the 10 KBO teams in Korea, nine are backed by well-known companies — with the exclusion of Kiwoom Heroes, which is run via sponsorship rather than direct corporate ownership. Only NC Dinos are owned by a midsize company, NCsoft. Even still, the financials are continually questioned.

So if baseball isn't exactly "Moneyball," why keep doing it? The answer lies beyond the companies' financial statements.

The KBO drew 10,887,705 fans last year, far surpassing the previous record of 8,400,688 in 2017. Of the 720 games played, 30.7 percent — or 221 — sold out. The Hanwha Eagles, a longtime team based in Daejeon, posted a sellout rate of 66.2 percent.

A team representative explained that “with the introduction of the Automatic Ball-Strike System, the league has become more fair, and the perception among the MZ generation [millennials and Gen Z] that baseball is a ‘cost-effective leisure activity’ has increased attendance.”

Naturally, this led to a rise in revenue. According to financial statements from the 10 KBO teams, their total annual revenue reached 682.5 billion won ($499 million) in 2024, an 11 percent increase from 614.7 billion won in 2023. Operating profit rose 17.8 percent to 32.6 billion won during the same period.

Lotte Giants shortstop Jeon Min-jae hits a home run during a KBO game against the Samsung Lions at Sajik Baseball Stadium in Busan on May 18. [JOONGANG ILBO]

Although KBO teams have long carried the reputation of being in the red, seven of the 10 teams actually turned a profit last year. Compared to 2019, just before the Covid-19 pandemic, annual revenue jumped 32.2 percent and operating profit soared 448.1 percent over the past five years, showing that “baseball is back” in a quantifiable way.

The biggest winner was Kia Tigers, which nabbed the championship trophy last year. The team’s annual revenue grew 69.6 percent, from 45.4 billion won in 2023 to 77.1 billion won last year, the highest growth among all 10 teams.

“We saw a significant boost in merchandise sales and ticket revenue,” said a Kia spokesperson, crediting the championship for the gains. Indeed, Kia’s home stadium in Gwangju, Champions Field, drew a record 1.26 million spectators last year.

Fans watch a KBO game between the Kia Tigers and Doosan Bears at Jamsil Baseball Stadium in southern Seoul on April 20. [YONHAP]

But did the parent companies also benefit from this success? In pure financial terms, the answer appears to be “not quite.”

Korean professional baseball still heavily relies on support from parent firms. Excluding Kiwoom, the remaining nine teams earned 241.1 billion won in revenue from related firms — mainly in the form of advertising and sponsorships from their parent companies. This accounted for 34.7 percent of the teams' combined revenue of 637.5 billion won, far exceeding their combined operating profit of 26.7 billion won.

With the KT Wiz, for example, 49.8 percent of total revenue came from related-party transactions. It would not be an exaggeration to say that over 200 billion won in conglomerate capital keeps the KBO running every year.

KT Wiz outfielder Ahn Hyun-min at bat during a game [KT WIZ]

Operational challenges also persist beyond finances. One team insider said, “It’s always a concern that performance cannot be guaranteed despite heavy investment.” Spending large sums to sign free agents does not necessarily improve team results.

When restructuring is needed, selling off a baseball club is rarely an option. Because of the sport’s popularity, even discussing a sale can damage a company’s image. Another insider added that “strong pushback from the local community and ties with regional businesses also play a role.”

So why do companies continue to invest tens of billions of won each year to run baseball clubs? The answer lies in intangible benefits not captured in financial statements.

Lotte Giants starter Charlie Barnes pitches against the NC Dinos during a KBO game at Sajik Baseball Stadium in Busan on May 4. [YONHAP]

When the JoongAng Ilbo asked the nine team-owning firms — Kia, Cheil Worldwide, LG, Doosan, KT, Shinsegae, Lotte, Hanwha and NCsoft — why they operate baseball teams, eight cited “enhancing brand value” as the primary reason. This was true even for companies focused on business-to-business commerce like Hanwha and Doosan.

“Just having people recognize the name ‘Doosan’ when they see Doosan Enerbility or Doosan Bobcat in the news improves brand familiarity,” said a Doosan representative.

The second most cited reason by seven of the nine companies was “increasing consumer touchpoints.” For business-to-customer firms, baseball offers marketing opportunities that more directly translate into sales.

Fans watch a KBO game between the Hanwha Eagles and Lotte Giants at Daejeon Hanwha Life Ballpark in Daejeon on May 25. [YONHAP]

“During the season, company names are continuously mentioned through cheers and songs,” said Kim Ki-han, a professor of physical education at Seoul National University. “The promotional and communication effect easily surpasses the 30 to 40 billion won spent annually to support a team, making a return on investment significant.”

Naturally, the owners’ personal love of baseball also plays a role. Hanwha Chairman Kim Seung-youn, frequently spotted at Eagles games, is affectionately called “Victory Fairy” by fans because the team tends to win when he attends. This year, he visited Daejeon Hanwha Life Ballpark to celebrate both the 40th anniversary of the team’s founding and the opening of its new stadium.

Shin Dong-bin, chairman of Lotte and owner of Japan’s Chiba Lotte Marines, also watched a Lotte Giants game in person this year. LG Chairman Koo Kwang-mo lifted the championship trophy alongside LG Twins players after the club won the Korean Series in 2023.

Ryu Ji-hyuk of the Samsung Lions hits a two-run single against the Kiwoom Heroes during a KBO regular-season game at Gocheok Sky Dome in Seoul on May 21. [YONHAP]

In contrast, Samsung Electronics Chairman Lee Jae-yong, a lifelong Samsung Lions fan, has not been seen at a game since 2015, when he attended with his mother, Hong Ra-hee, honorary director of the Leeum Museum. Facing legal troubles and corporate challenges, he has largely refrained from public appearances.

Samsung’s decision to shift baseball operations to its ad agency, Cheil Worldwide, is seen as part of this distancing. However, he is still said to be keeping an eye on the team.

The situation is much different in the United States.

In MLB, unlike in Korea, corporate ownership is rare. Among all 30 teams in the National and American Leagues, only the Toronto Blue Jays, run by Canadian telecom giant Rogers Communications, and the Atlanta Braves, owned by Formula One parent Liberty Media, are owned by corporations. Most are held by investor groups or independent pro sports management companies.

San Francisco Giants outfielder Lee Jung-hoo hits a single against the Detroit Tigers in the first inning during an MLB game in Detroit, Michigan, on May 26. [AP/YONHAP]

This underscores that MLB operates as a pure business, devoid of personal passion for baseball. The late Leonard Koppett, a legendary U.S. baseball journalist, wrote in his book “A Thinking Fan's Guide to Baseball” (1967) that the love for baseball never outweighs economic necessity for MLB owners, and that if forced to choose between profit and victory, they would certainly choose the former.

MLB’s main source of revenue is broadcasting rights. The league’s total revenue hit a record $12.1 billion last year, with nearly half estimated to come from broadcasting rights, according to Forbes. The New York Yankees, valued at $8.2 billion in 2025, lead the league and generate income by selling broadcasting rights through their regional sports network, YES Network, along with advertising and sponsorship deals.

“The KBO is growing impressively, to the point that MLB is paying attention, particularly due to factors like the increased attendance of women and new stadiums,” said Jeon Yong-bae, a professor of sports management at Dankook University. “But because baseball teams are the first to go on the chopping block when a company is struggling, building a sustainable profit model is essential.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY NA SANG-HYEON, NOH YU-RIM [[email protected]]