SEOUL, Aug. 14 (Korea Bizwire) — Korea’s big-three talent agencies–SM Entertainment, YG Entertainment, and JYP Entertainment–are competing hard in launching new idol groups. Of these, however, only YG Entertainment has seen its share price soar recently while others are languishing in the market.
According to financial investment sources on August 13, the top-three entertainment agencies have debuted new groups including the four-member girl group “Red Velvet” by SM Entertainment, the five-member boy band “Winner” by YG, and the seven-member boy group “Got7″ by JYP.
As the new groups are launched, market analysts are also keenly interested in whether the new talents could buoy up the stocks of the companies. Until now, it seems YG Entertainment has won the competition.
Although Winner debuted later than any other groups of the three agencies, it made the biggest impact on the share price. As soon as Winner’s debut album was announced at 12 midnight on August 12, its title song “Empty” was ranked No. 1 in nine domestic music charts, signaling the advent of a new force to reckon with.
With the news, the stock price of YG Entertainment jumped 6.57 percent to more than 40,000 won, the first time in 50 days. On the 13th, the company’s share price shot up 14.92 percent approaching the daily upper limit of 15 percent, thanks to the news of investment in the company by Louis Vuitton.
It was reported that L Capital Asia, the Asian private equity business sponsored by LVMH Moet Hennessy, is negotiating to invest in the Korean talent agency to the tune of 100 billion won.
In contrast, the stock price of SM Entertainment rose only 2.22 percent on the day of Red Velvet’s debut on August 4. In January when Got7 made a debut, the share price of JYP Entertainment was about 4,000 won, which has since stayed at almost the same level for more than seven months.
An analyst commented, “In light of the cases of Big Bang and 2NE1, both of which were prepped by YG Entertainment, the market believes any new talent launched by YG is good with high potential for success. That’s because investors consider the human assets of YG as stable sources of income.”
By Sean Chung (email@example.com)