Stock Prices Of Entertainment Companies Plunging Due To Recent Drug Scandals
With “artist risks” being highlighted due to the recent drug scandal, stock prices of entertainment companies also fell significantly. On October 26, companies’ stock prices fell immediately following Lee Sun Kyun and G-Dragon’s drug charges, which appeared to have dampened investment sentiment in the related industry.
In addition, as suspicions were raised that additional celebrities were connected to the sandal, HYBE (-10.7%), JYP Entertainment (-6.17%), SM Entertainment (-5.14%), and YG Entertainment (-7.89%) fell significantly.
Overall, entertainment stocks are rebounding in the early trading on October 27. Investment sentiment appeared to have recovered as celebrities continued to deny drug scandals that broke out the day before.
Due to this, HYBE went up 4.66% from the previous trading day. Along with this, JYP Entertainment (3.79%), YG Entertainment (2.99%), and CUBE Entertainment (2.33%) are also rising. SM Entertainment’s stock price is falling as some executives are being investigated for suspicions of market manipulation.
While entertainment stocks are generally showing a rebound, interest is growing in the future stock price trend of HYBE, which fell nearly 11% the previous day. It is interpreted that sock prices have rebounded as celebrities who have been involved in drug scandals have denied them one after another.
HYBE recently stated, “BTS has nothing to do with the rumor, and it is untrue. We plan to respond strongly to the reckless spread of rumors.” The stock price is recovering again thanks to the agency’s statement, but investment sentiment is expected to remain frozen for the time being as there are so many large groups in HYBE, and the drug scandal is still threatening the industry.
Previously, the Incheon Police Agency’s drug crime investigation unit announced that it had booked G-Dragon on charges of violating the law on drug management. The police said this incident and Lee Sun Kyun’s drug use incident were separate, unrelated cases. In response to this, G-Dragon completely denied using drugs through his lawyer.
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