How Scandals ImpactInventoryCosts of Entertainment Firms kafox April 19, 2016 0 Scandals and controversies in K-pop take a toll no longersimplest on artists, yet on companies as well. Often, investors will sell or purchase stocks according toexcellent or bad news about an organization or its artists. Whilst a a success comeback or debut would possiblylift the stock wortha couple of points, scandals can make corporate stocks drop sharply, causing losses of millions of greenbacksin precisely a unmarried day. Here are how problems in K-pop have affected the stock cost of probably the mostbest entertainment agencies in Korea.
Kris files lawsuit opposed to SM
When former EXO member Kris Wu sued to nullify his contract with SM Entertainment in May just 2014, the company’s stock suffered a enormousrate drop. Firstly of the month, stocks were trading at 52,300 won (approximately $46) when they started to enormously fall, in the endattaining a low of 35,000 won (approximately $31) viaoverdue June. The full loss used to beequivalent to $309 million.
After SM stocks hit their low and were starting to recover, they were beat back offback by news of Jessica leaving SM Entertainment. The company’s stock charge ended up falling from 40,750 won (approximately $36) to 37,400 won (approximately $33). At that time, there were around 20.6 billion shares of SM, which ended in a cumulative loss of 69.1 billion won (approximately $65 million).
SM’s stocks took a month to regain their outdated levels, but they didn’t remain there for long.
After Luhan sued to wreck his contract in November 2014, the company’s stocks dropped once again, down to 27,100 won (approximately $24). In fact, to this day, SM’s stock price has still never completely recovered to where it turned intoprior to Kris’s lawsuit was filed.
Tzuyu Taiwan-China Controversy
Tzuyu waving a Taiwanese flag on Televisionled to a stir in China, and the debate caused JYP Entertainment’s stock price to drop from 4,540 won (approximately $4) to 4,140 won (approximately $3.60) in one day, wastingnearly 10 percent of its value. Across all shares, here's a loss of 13.6 million won (approximately $11,800).
JYP Entertainment’s stock price dropped sharply after the Sewol ferry incident in April 2012. After investors heard news that Park Jin Young’s wife’s uncle was either a billionaire and the landlord of the Sewol ferry, rumors of corruption and fiscal connections started to spread. JYP denied receiving any funds, but the rumors still caused the stock to drop from 6,000 won (approximately $5.20) to 4,500 won (approximately $3.90), a 25 % decrease.
Park Bom’s Drug Controversy
When rumors of 2NE1 member Park Bom smuggling medication into Korea began circulating in 2014, YG Entertainment’s stock price dropped from 44,500 won to 37,000 won (approximately $38.50 to $32.00). The stock price was stored by YG boy staff WINNER, who debuted in August and rallied the stock price back up to 52,900 won (approximately $45.80).
IU was embroiled in lots of scandals in 2015 that coincided with a drop in the stock price of her agency, LOEN Entertainment. The percentage price was 79,900 won (approximately $69) on November 3rd, but after the controversy about her songs lyrics began, it dropped to a low of 64,300 won (approximately $56) by November 12. Primarily basedat thegeneralquantity of LOEN shares, this is a loss of 394.5 billion won (approximately $342.7 million).
kafox is a K-pop addict and avid viewer and subtitler of Korean dramas on Viki.
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