Logo of Phnom Penh Post newspaper Phnom Penh Post - K-pop firm owners’ stocks drop in value

K-pop firm owners’ stocks drop in value

Content image - Phnom Penh Post
SM Entertainment founder Lee Soo-man. Yonhap/The Korea Herald

K-pop firm owners’ stocks drop in value

The value of stocks owned by both former and current entertainment agency owners in South Korea have dropped nearly 30 per cent compared to last year, data showed on Sunday, as the industry struggles to cope with a slew of scandals as well as trade tensions between Korea and Japan, a key market.

According to conglomerate research firm Chaebul.com, the combined value of stocks held by seven most stock-rich entertainment agency owners fell 28.7 per cent to 512 billion won ($435.5 million) as of Friday.

Former CEO and chief producer of YG Entertainment Yang Hyun-suk saw the steepest decline, with the value of his stock holdings dropping 41.1 per cent to 93 billion won from last year’s 158.5 billion won.

Yang stepped down from leading YG Entertainment in June – after its artists were mired in an industry-wide K-pop scandal, including allegations of drug use and prostitution – but the former CEO still holds a 16.12 per cent stake in the agency, making him the largest shareholder.

YG’s share price ended at 27,800 won on Friday, which is 41.5 per cent lower than at the beginning of the year.

‘Situation may improve’

The value of shares held by SM Entertainment founder Lee Soo-man dropped 29.4 per cent in the same period to 162.7 billion won. Lee owns a 19.04 per cent stake in the agency named after him.

For JYP Entertainment founder and Chief Communications Officer Park Jin-young, the value of his stock holdings fell 29.9 per cent to 133.3 billion won from 193 billion won.

Stock prices of SM and JYP have fallen 29.7 per cent and 29.9 per cent, respectively since the beginning of the year.

Last year, Japan accounted for more than 15 per cent of the total market share for all three major agencies.

K-pop artists hold concerts and release several albums in Japan annually, since the neighbouring country grew into a stable market nearly a decade ago.

“Due to heightening political and economic dispute with Japan, valuation of firms in the entertainment industry have been plummeting,” said Hana Financial Investment analyst Lee Ki-hoon.

“It seems the comeback of major artists slated in the near-future will not be able to lift [the dampened investor sentiment], but the situation may improve next year,” he added. THE KOREA HERALD/ASIA NEWS NETWORK


  • Rainsy vow to return on Nov 9 dismissed as ‘political warfare’

    An announcement from the Supreme Court-dissolved Cambodia National Rescue Party (CNRP) that its “acting president” Sam Rainsy would return to the Kingdom on November 9 was dismissed on Sunday as “political warfare”. The CNRP made the announcement on Friday after a permanent committee meeting chaired by

  • Kingdom rejects VN request

    Cambodia rebuffed Vietnam’s request to provide nationality to its citizens living in Kratie, Mondulkiri, Ratanakiri and Stung Treng provinces, with officials saying law enforcement is the Kingdom’s responsibility. Chheang Vun, the head of the National Assembly’s Committee on Foreign Affairs, International Cooperation,

  • Official transferred after pointing at car with foot

    The deputy director of the Siem Reap provincial Registration and Driver’s Licence Unit at the Department of Public Works and Transport who last week pointed at the number plate of a car taken in for a technical check with her foot has been transferred.

  • PM sues Rainsy in Paris court

    Prime Minister Hun Sen and Dy Vichea, the deputy chief of the National Police, filed lawsuits against Sam Rainsy, the “acting president” of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP), for defamation in a Parisian court on Tuesday. The court action comes after Rainsy,