The Golden Ticket: An Inside Look at the KBO-MLB Posting System

When Lee Jung-hoo, the Korean baseball phenom known as "Grandson of the Wind," signed a six-year, $113 million contract with the San Francisco Giants in December 2023, it was a moment of immense national pride. It was the largest contract ever given to a position player coming from the Korea Baseball Organization (KBO), a testament to his incredible talent.

But his journey to the Major Leagues was not a simple case of free agency. It was made possible by a complex and high-stakes process that governs the transfer of the KBO’s greatest stars to the global stage: the KBO-MLB posting system. Understanding this system is key to understanding the business of baseball in a globalized era.

A System of Controlled Access

Unlike in European football, where teams can simply buy and sell players from each other, the relationship between MLB and international professional leagues like the KBO and Japan's NPB is governed by a formal agreement. A player in the KBO cannot simply declare himself a free agent and sign with an MLB team until he has completed nine full seasons of service.

For a young superstar like Lee Jung-hoo, waiting that long would mean missing out on his prime earning years. The posting system is the solution to this problem. After seven seasons, a KBO player can request that his team "post" him for MLB clubs. If the KBO team agrees, a 30-day negotiating window opens, during which the player and his agent are free to negotiate with any of the 30 MLB teams.

The Transfer Fee: A Win-Win-Win

The crucial part of the system is the "transfer fee" that the MLB team must pay to the KBO team if they successfully sign the player. This fee is not a flat rate, but is calculated on a tiered system based on the size of the contract.

For Lee Jung-hoo's $113 million deal, his former team, the Kiwoom Heroes, received a significant windfall. They received 20% of the first $25 million, 17.5% of the next $25 million, and 15% of the remaining $63 million. This added up to a transfer fee of over $18 million for the Heroes.

This system creates a win-win-win scenario.

• The Player Wins: Lee Jung-hoo gets to test his skills at the highest level of the sport and sign a life-changing contract during his peak playing years.
• The MLB Team Wins: The San Francisco Giants acquire a superstar talent to build their team around.
• The KBO Team Wins: The Kiwoom Heroes are compensated for losing their best player, and they can reinvest the multi-million dollar transfer fee into their own scouting, player development, and facilities. This helps to maintain the competitive health of the KBO.

The posting system is a fascinating piece of international sports diplomacy. It is an agreement that respects the sovereignty of the KBO while still allowing its most ambitious talents to chase their dreams on the biggest stage. It is the golden ticket that turns KBO legends into MLB rookies, and it is the financial engine that allows the KBO to continue producing the next generation of stars.