Announcement of BIGBANG Renewal Results to YG Entertainment's Stocks Skyrocketing

Announcement of BIGBANG Resigning Results to YG Entertainment's Stocks Skyrocketing
(Photo : Twitter)

YG Entertainment has been through a lot the past year not just in their stockholding's status but their relationships with their artists as well. The company's stocks have been in a state of volatility throughout the scandals and difficulties of their artists.

These two factors are correlated in the sense that investors are cautious in the companies that they put their trust and money into, this is why the majority of them discarded their shares as soon as news of Seungri's scandal hit mainstream media. As it made known to the public, the former idol is still currently facing multiple allegations over drug use and sexual assault cases done at the Burning Sun nightclub in Gangnam. 

The reports related to the claims state that Seungri acted as the nightclub's public relations director and was seen to coerce sex workers to do service for potential foreign investors. Aside from damaging the 29-year old's career, it also puts light on the corruption that takes place in the local district police officers. YG Entertainment's stocks began plummeting then. 

On March 12, 2019, their shares decreased 3.36 percent from the previous day, the lowest it has been since November 23, 2018. The label's stock price continuously began to drop the following days, and more than one hundred ten billion won went down the drain the next Monday. This resulted in the reduction of YGE's market cap to approximately 675.6 billion won from its original 786 billion just three days prior. This scandal pushed Seungri into early retirement which further affected the decline of the company's stocks.

However, it is not only Seungri's case that affected the market price of YG's stocks, controversies such as the departure of iKON's former leader BI, also known as Kim Hanbin, in the latter part of 2019 and the band's late comeback also had a significant impact. Not to mention how the hundreds of waiting fans of BLACKPINK expressed their disappointment in the lack of promotion for the ladies during their Kill This Love comeback era in April 2019 and the loss of great artists such as CL (2NE1) and Lee Hi as their contracts expired last year.

On October 22, 2019, a financial analyst from Hana Financial Investment Co. reported that the stability of YG Entertainment's stocks would be dependent on the contractualization of BIG BANG, as well as the debut of the company's new boy group TREASURE13 in the earlier part of 2020.

On the 12th of March, as of 1:00 PM KST, YG Entertainment's stocks amounted to approximately 23,000 Won per share, which is a massive jump from 16,000 KRW during the Burning Sun Scandal and is now beginning to stabilize. This is due to BIGBANG finishing their military services and all four members coming together signing another contract with YG Entertainment. Among other news such as hints of them performing their comeback stage at Coachella, iKON's rebirth as six members, BLACKPINK's upcoming album, and the fast-approaching debut of YG's new boy group - Treasure! 

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