Shares of K-pop management agency YG Entertainment dropped almost 7% after reports emerged that the contract renewal for a member of girl group Blackpink is in doubt.
YG shares traded at 73,900 Korean won at 2.41pm KST. At this level, the stock is at its lowest since May 11, when it closed at 66,700 Korean won apiece.
According to an exclusive report by South Korean media outlet Munhwa Ilbo, Thailand-born member Lisa has “not been able to find an agreement” regarding a contract extension with YG Entertainment.
South Korean media outlet Newsen also reported that YG Entertainment responded to queries by saying that contract renewal discussions were underway, but Munhwa Ilbo reported that “it is known that the difference between the two sides is quite large.”
Blackpink — made up of members Jisoo, Jennie and Rosé, in addition to Lisa — has been one of YG Entertainment’s most successful K-pop groups.
The four member group debuted with YG in August 2016. As K-pop groups typically sign seven-year contracts, Blackpink’s contract is expected to expire in August.
Citing an “industry insider,” Munhwa Ilbo also reported that “YG’s contract renewal process with the remaining three members of Blackpink is proceeding relatively smoothly.”
The group was the first Asian act and K-pop girl group to headline the Coachella festival in the U.S., and the first K-pop band to headline a major festival in the U.K. at the BST Hyde Park festival.
Blackpink also holds the Guinness World Record for most-viewed music channel on YouTube for a group, beating out U.S. pop band Maroon 5 in April.
Source : CNBC