Investors aren’t too happy with Korean entertainment companies following multiple sex abuse scandals.
Last week, multiple sex abuse scandals rocked the Korean music industry. It also dismantled several well-known K-pop groups.
First, Seungri – dubbed the “Great Gatsby of Korea” and the youngest member of K-pop group Big Bang – announced his abrupt retirement. The move came after authorities charged the affluent singer with supplying prostitutes and cocaine to foreign investors at nightclubs in Seoul’s Gangnam district.
A day later, Makeus Entertainment, another talent agency, publicly dropped Jung Joon-young. The 30-year-old singer and TV celebrity filmed sex videos with at least 10 women without their consent. He then shared the secret recordings with other entertainers – including Seungri – on chatrooms.
Makeus immediately terminated his contract. Jung is also repeatedly barred from leaving the country. He remains under investigation by the Seoul Metropolitan Police Agency for sex abuse crimes, including sexual bribery.
Choi Jong-hun, another K-Pop star and member of rock group FT Island, allegedly participated in the chat. In the conversations, he detailed a previously undisclosed drunk driving incident three years ago.
The admission prompted the group’s agency, FNC Entertainment, to drop Choi, forcing him into retirement.
Soon after, Yong Jun-hyung, another K-pop star from boy band Highlight, admitted to receiving and viewing Jung’s videos.
Now, the scandals are crushing the broader Korean music industry, at least in the local stock market.
The more scandals come out, the harder Korea’s music stocks fall.
According to a new report, major South Korean entertainment companies have seen their market value plummet.
YG Entertainment, which manages Big Bang and Seungri, has seen its shares plummet 24.8% since February 25th. On that day, police questioned the young K-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 five major entertainment companies – YG, JYP Entertainment, SM Entertainment, Cube Entertainment, and FNC Entertainment – lost 17.5% in value from February 25th to March 15th. Their combined market value fell from 3.35 trillion KRW ($3 billion) to 2.76 trillion KRW ($2.4 billion).
Breaking down SM, Cube, and FNC’s stock value losses, all three reported over 20% declines during this period. FNC alone saw its share price fall 11.1% on March 11th, the day Choi announced his retirement.
JYP Entertainment, however, only lost 5.5% of its market value during this period.
Featured image by Big Bang (YouTube screengrab).
Please write more about burning sun and yuchun issue. There was politician, police, money londering, sex abuse, child abuse, women abuse were occured. Need more investigate. Need fair reporting.