Korean Investment Analyst Predicts Two New Groups From SM Entertainment In 2015

With a lineup aging idols and several scandals within the company's biggest groups last year, one financial analyst expects SM Entertainment will debut new groups to maintain their competitive edge.  

Korean investment analyst Kim Min-jung has predicted that the Lee Soo Man-founded company will be debuting at least two new groups this year.

In a report from the Korean Economic Times, the analyst explains that SM Entertainment need new groups in its line-up, and suggests that the company is under pressure to make these debut groups succeed in order to stay competitive. He adds that the company has lost momentum due to the events in the second half of 2014 wherein it was hit by controversies among its most popular idol groups. In September, Jessica left Girls' Generation then in October, Luhan became the second member to leave EXO.

 "SM Entertainment's total sales and profit has gone up by 9.9% and 2.5 % respectively and the stocks are suffering from a loss of momentum at the moment since the second half of last year," Kim explained according to an English translation from Koreaboo. "Investors are also not feeling as confident due to the lack of success in their new artists in comparison to competing companies."

"The biggest issue in K-Pop right now is that there needs to be new boy groups to replace TVXQ, once popular veteran boy groups enlist in the army," Kim added.

Kim Min-jung is an analyst for KB Investment & Securities, Ltd. headquartered in Seoul, South Korea and provides investment banking and brokerage services. It is part of KG Financial Group, a holding company that engages in providing financial services and one of the largest of its kind in South Korea, so these statements are likely to be taken seriously by both investors and fans.

What kind of rookie groups would do you want SM to debut? Another girl group or a boy group, and how many members?

Tags
EXO
Girls Generation
SM Entertainment
Jessica
Luhan
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