Artist’s future plans are the biggest negative factor for an entertainment enterprise’s stock prices.
As YG Entertainment is having problems renewing its contract with the group BLACKPINK, the company’s stock price is plunging day after day.
According to the Korea Exchange on October 2nd, YG Entertainment fell 2.79% on the KOSDAQ market on September 27th compared to the previous trading day. YG Entertainment shares fell 22.94% last month alone. Stock prices are flowing down as news spread that it is unclear whether BLACKPINK members will renew their contracts.
This is not the first time that YG Entertainment’s stock price has fluctuated due to the artist’s contract status.
In June, the stock price plunged after it was revealed that YG’s contract with singer G-Dragon had expired. This is because the future profit outlook will be determined by whether or not artists renew contracts with their agencies, especially in case the company is highly dependent on the activities of major artists.
Meanwhile, G-Dragon is believed to have signed with Warner Music.