The stock market requested artists’ contract information disclosure due to recent stock fluctuations in big companies
According to the Korea Exchange, the stock price of YG Entertainment plunged after reports about BLACKPINK not renewing contracts as a whole group broke out on September 21st. On the 27th, it closed at 62,800 won on the KOSDAQ market, marking a fall of 2.79% from the previous trading day.
YG’s stock has declined by a quarter within the past 1-2 months. It suffered a significant decrease in June due to the news of G-Dragon’s contract expiry.
Earlier, HYBE’s stock also plummeted when BTS reported their temporary suspension of group activities on a live broadcast. The market capitalization also showed a loss of 1.7 trillion won in a day due to the news. As the stock price kept going down, HYBE had to release an explanation but it still took a long time for it to recover.
Due to such repeated cases, there are voices from the stock market asking entertainment companies to directly disclose artists’ activities. They suggested a set of comprehensive exchange disclosure regulations for listed corporations, which require key management matters to be disclosed frequently.
In particular, comprehensive disclosure refers to a system in which listed companies voluntarily provide important information to the market. The exchange’s comprehensive disclosure guidelines instruct that issues related to significant celebrity or exclusive management contracts that have a considerable impact on revenue and profits should be disclosed.
In this regard, various artists’ management agencies opposed the idea, saying “Information related to artists’ contracts is very sensitive because they are intertwined with various things, such as albums, performances, advertisements”. However, some others agreed, saying “Stock prices fluctuate significantly based on artists’ decisions, so instead of hiding them, it is better to reveal them to gain trust from investors in the market”.
Source: Daum
