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Media And Entertainment
CIO Bulletin
22 September, 2023
Uncertainty over the future of Blackpink, a K-pop girl super group, is casting a shadow over YG Entertainment, its management agency.
The uncertainty of the famous K-pop girl group has investors worried that the star ensemble’s possible breakup will hurt the Seoul-listed company’s value.
After having a stellar year, YG's stock price on South Korea's Kosdaq index is being negatively impacted by rumors that Lisa, a Thai member of Blackpink, may decide not to renew her contract with the company and leave.
The first to speculate that Lisa may go was South Korea's Munwha Ilbo newspaper in July, which cited an unknown Chinese source. The Dong-A Ilbo newspaper and the private broadcaster SBS have joined the trend in other media. Recent comments made by Lisa in public have also been regarded as a departure.
On Thursday, YG shares fell 13.3% as a result of continuing questions about Lisa's future status as well as new worries about the fate of other group members. After wagers on YG's future price fell more than 10% from the previous trading day, regulators prohibited short selling of the company on the choppy Kosdaq on Monday.
Even still, YG stock has enjoyed a fantastic year overall, climbing 57.8% as of Thursday's close, but since Lisa rumors first surfaced two months ago, it has fallen 12.3%.
Local media outlet Starnews claimed that Lisa turned down YG's offer of 50 billion won ($37.3 million) paid over an ambiguous time period. The company, however, failed to confirm the sum. Analysts predict that YG will likely be able to afford to pay more to acquire the deals necessary to maintain the group as is.







