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[Alpha Biz=(Chicago) Reporter Paul Lee] Stock prices of major entertainment companies in Korea fell en masse. Sales of albums by key artists have been sluggish, and the company's own issues, including judicial risks, appear to have affected investor sentiment.
According to the Korea Exchange on the 20th, JYP Entertainment (035900) closed at 90,300 won last Friday, down 9,500 won (9.52%). YG Entertainment (122870) also closed at 52,500 won, down 9.01%. HYBE (352820) and SM (041510), the four other entertainment companies in Korea, also closed at 193,300 won and 90,600 won, down 7.4% and 5.43%, respectively.
The reason why entertainment stocks fell on the same day was because institutional investors released a large number of supplies. The agency sold a net 25.4 billion won worth of JYP Entertainment, YG 125 billion won, Hive 44.6 billion won and SM 11.1 billion won.
The companies' third-quarter earnings were good, but investor sentiment appears to have been undermined as album sales remained sluggish amid the recent comeback of major artists.
SM is also affected by judicial risks that arose while Kakao and Hive competed over the acquisition of management rights, and in the case of YG Entertainment, Black Pink's uncertainty in renewing its contract and its chief producer Yang Hyun-suk was sentenced to six months in prison and a one-year suspended jail term in the second trial on charges of violating the aggravated punishment law for certain crimes (retaliatory threats and forcing interviews).
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
