Investors weren’t too proud of Korean leisure firms following explosive intercourse abuse scandal admissions.
Last week, a number of intercourse abuse scandals the Korean music business. It additionally dismantled a number of well-known Okay-Pop teams.
First, singer Seungri – dubbed the “Great Gatsby of Korea” and youngest member of Okay-Pop group Big Bang – introduced his abrupt retirement. The transfer got here after authorities charged the prosperous singer with supplying prostitutes to overseas buyers at nightclubs in Seoul’s Gangnam district.
A day later, Makeus Entertainment, one other expertise company, publicly dropped Jung Joon-young. The 30-year-old singer and TV superstar filmed intercourse movies with no less than 10 ladies with out their consent. He then shared the key recordings with different entertainers – together with Seungri – on chatrooms.
Makeus instantly terminated his contract. Jung can also be repeatedly barred from leaving the nation. He stays underneath investigation by the Seoul Metropolitan Police Agency for intercourse abuse crimes, together with sexual bribery.
Choi Jong-hun, one other Okay-Pop star and member of rock group FT Island, allegedly participated within the chat. In the conversations, he had detailed his beforehand undisclosed drunk driving incident three years in the past.
The admission led to the group’s company, FNC Entertainment, to drop Choi, forcing him into retirement.
Soon after, Yong Jun-hyung, one other Okay-Pop star from boy band Highlight, admitted to receiving and viewing Jung’s movies.
Now, the scandals have additionally completely crushed the Korean music business, no less than within the native inventory market.
The extra scandals come out, the more durable Korea’s inventory market falls.
According to a new report, main South Korean leisure firms have seen their market worth plummet.
YG Entertainment, which manages Big Bang and Seungri, has seen its shares plummet 24.eight% since February 25th. On that day, police questioned the younger Okay-Pop singer about drug use and prostitution. Yesterday, shares closed at 36,150 KRW ($31.99), down 1% from Monday.
In addition, the nation’s 5 main leisure firms – YG, JYP Entertainment, SM Entertainment, Cube Entertainment, and FNC Entertainment – misplaced 17.5% in worth from February 25th to March 15th. Their mixed market worth fell from three.35 trillion KRW ($three billion) to 2.76 trillion KRW ($2.four billion).
Breaking down SM, Cube, and FNC’s inventory worth losses, all three reported over 20% declines throughout this era. FNC alone noticed its share worth fall 11.1% on March 11th, the day Choi introduced his retirement.
JYP Entertainment, nonetheless, solely misplaced 5.5% of its market worth throughout this era.
Featured picture by Big Bang (YouTube screengrab).