Amid a sex and drug scandal involving talent agency YG Entertainment, its main rival saw its market capitalization soar past others.
On March 12, JYP Entertainment’s market value reached 1.6 trillion won ($1.41 billion) on the rising popularity of its girl group Twice and boy band Got7. The company’s new girl group ITZY, which debuted last month, is also rapidly gaining fans.
JYP Entertainment’s new girl group ITZY
Another factor behind JYP's soaring value is the misfortune of YG Entertainment, whose market value has declined by around 160 billion won to 652.9 billion won since January when the so-called 'Seungri scandal' broke.
Seungri, who is a star artist at YG Entertainment was an executive at Burning Sun -- the now-defunct club that was raided on charges of sexual assault and drug trafficking.
Seungri also allegedly solicited prostitutes for investors from Taiwan, and most recently, news reports are accusing him of sharing sex videos and photos through a group chat with fellow celebrities.
Meanwhile, SM Entertainment saw its market cap fall to around 900.2 billion won after an earnings shock stemming from a sales decline. The firm posted revenue of around 208.5 billion won in the fourth quarter last year, and an operating profit of 15.2 billion won, much lower than market estimates. This was due to the poor performance from its Japanese unit and its subsidiary Keyeast.
On March 12, JYP stock prices fell 4.01 percent to close at 29,950 won, while SM ended at 39,050 won and YG at 35,900 won.
By Song Seung-hyun (email@example.com