YG Entertainment continues to face a decline in stock price following the failure to renew contracts for individual activities with BLACKPINK members.
On January 10, YG Entertainment closed at the same price as the previous trading day at 44,800 KRW (33.94 USD) on the KOSDAQ market.
However, the stock took a hit during mid-day trading, dropping to 44,050 KRW (33.37 USD) —a 1.67% decrease from the previous day’s opening and marking a new 52-week low. The failure to secure additional contracts for BLACKPINK’s solo activities appears to be negatively influencing the stock.
In a recent report, analyst Lim Soo Jin from Daishin Securities remarked, “Following the announcement of the cancellation of BLACKPINK’s individual activity contracts, the release plan for BABYMONSTER’s album, scheduled for the second quarter of this year, was delayed later than market expectations, contributing to the ongoing decline in stock prices.” She added, “With the adjustment of the annual outlook for BLACKPINK and BABYMONSTER’s activities this year, a downward revision of revenue estimates is inevitable.”On the 29th of last month, YG declared regarding BLACKPINK, “We have mutually agreed not to pursue separate additional contracts for individual activities,” affirming the company’s full support for BLACKPINK’s group activities and expressing warm encouragement for the members’ individual pursuits.
Earlier on January 6, YG had announced the signing of exclusive contracts with all four members for ‘group’ activities. Yang Hyun Suk, YG’s chief producer, expressed his satisfaction, stating, “I am delighted to continue our connection with BLACKPINK,” underscoring the company’s commitment to enhancing BLACKPINK’s global prominence.
BLACKPINK debuted on August 8, 2016, with the double title tracks “Whistle” and “Boombayah.” Members Jisoo, Jennie, Rosé, and Lisa, possessing both talent and beauty, generated significant buzz as YG’s new girl group during their debut. They soared to stardom in the K-pop scene with hits like “Playing with Fire,” “As If It’s Your Last“‘ “Ddu-Du Ddu-Du,” “Kill This Love,” “Lovesick Girls,” “Pink Venom,” and “Shut Down.”
In September 2022, they made history as the first K-pop girl group to top the U.S. Billboard 200 and the UK Official Albums Chart with their second full-length album, ‘Born Pink.’ Moreover, they successfully wrapped up the highest-grossing world tour in the history of girl groups at 148.3 million USD, drawing 1.8 million fans globally in 2022 and 2023.
Despite being under different agencies like EXO or Super Junior, BLACKPINK, akin to other senior K-pop groups, follows the ‘separately but together’ approach, allowing the members to pursue both individual and group activities. Under this approach, the idols would continue to pursue group activities with the initial label while the members venture for solo activities on their own. Recently, member Jennie established her own label, ‘ODD ATELIER,’ as announced on her social media accounts.
