YG Entertainment Stocks Tumble on Seungri Scandal

Published on 2019/03/13 | Source

/Yonhap

A major scandal involving Seungri of K-pop boy band Big Bang and other celebrities has sent the stock of his management agency YG Entertainment into a nosedive.

YG Entertainment stocks plunged 14.1 percent on Monday and another 3.36 percent on Tuesday to close at W35,900, the biggest drop since the company went public on the junior Kosdaq in November 2011 (US$1=W1,130).

YG Entertainment lost W133.7 billion worth of market capitalization over the last two days.

CEO Yang Hyun-suk owns a 21.17-percent stake, while web portal Naver holds 9.13 percent and the National Pension Service 6.52 percent. Naver invested W100 billion back in 2017 to become the second largest shareholder.

Other entertainment company shares also dropped Tuesday, with JYP Entertainment stocks falling four percent and SM Entertainment 3.7 percent.