KBO League: Investing in R&D and HRD for Sustainable Growth
The Korea Baseball Organization (KBO) reached 5 million spectators in just 275 games this season, according to an official announcement on the 3rd. Total revenue for the 10 member clubs hit a record 779.58 billion KRW, a 14% increase over 2024, based on 2025 audit reports released via the Financial Supervisory Service.
The league hit the 5-million mark 19 games faster than last year, when it took 294 games. Cumulative attendance currently stands at 5,041,891. The KBO reported that the league set new records for the fewest games required to reach 1 million, 2 million, 3 million, and 4 million spectators.
Last year’s total attendance was 12,312,519. Following a milestone 10 million spectator era in 2024 and surpassing 12 million last year, there is now discussion regarding the possibility of surpassing 13 million this year.
Why is KBO revenue increasing?
Increased popularity following the end of COVID-19 drove a surge in outdoor activities and fan engagement. This shifted the revenue structure through higher ticket sales, merchandise, advertising, sponsorships, and various side businesses.
According to former General Manager Ryu Sun-kyu, clubs previously functioned as financial burdens for their parent companies. He noted that while clubs reported plans to increase financial independence, they remained dependent on parent company subsidies to cover rising operational and facility costs.
The current growth trend suggests 2026 revenues could exceed 800 billion KRW. If this pace continues, the KBO league may enter an era of 1 trillion KRW in total industry revenue.
How should clubs invest for sustainable growth?
Ryu Sun-kyu argues that current growth is driven by fan consumption, but future growth must come from league competitiveness. He suggests clubs move beyond player-centric spending—such as rising FA salaries—and invest in Research and Development (R&D) and Human Resource Development (HRD).
In a sports context, R&D includes data analysis, sports science, scouting networks, and digital content development to improve fan experience. HRD focuses on training coaches, front-office staff, analysts, and marketing personnel.
Ryu points to Major League Baseball (MLB) as a precedent, where clubs operate large analysis organizations. He notes that creating players through a system is more efficient than buying them.
What are the proposed investment benchmarks?
The proposal suggests benchmarking global corporations. According to the Ministry of Trade, Industry and Energy and the Korea Institute for Advancement of Technology (KIAT), the top 1,000 R&D-investing companies in Korea spent 83.6 trillion KRW in 2024, with an average R&D intensity of 4.8%.
Applying a 4-5% R&D investment to the KBO’s 800 billion KRW revenue would create a total fund of 32 billion to 40 billion KRW annually, or roughly 3.2 billion to 4 billion KRW per club. A 1% HRD investment would provide approximately 800 million KRW per club for talent cultivation.
Ryu cites his own 2004 experience training with the Pittsburgh Pirates’ front office as a catalyst for the “Sportainment” strategy later implemented by the SK Wyverns in 2007. He suggests that intentional investment in front-office education is necessary for long-term competitiveness.
Frequently Asked Questions
How many games did it take to reach 5 million spectators this year?
It took 275 games, which is 19 games faster than the 294 games required last year.
What was the total revenue for the 10 KBO clubs in 2025?
According to audit reports from the Financial Supervisory Service, total revenue was 779.58 billion KRW, a 14% increase from 2024.
What is the difference between R&D and HRD in a baseball context?
R&D involves investing in player development systems, data analysis, and sports science, while HRD involves training the organization’s people, including coaches and front-office staff.
Do you think investing in front-office systems is more important than signing high-priced free agents?
