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YG Entertainment's stock falls following BLACKPINK Jennie’s label debut and G-Dragon's exit

YG Entertainment's stock falls following BLACKPINK Jennie’s label debut and G-Dragon's exit

YG Entertainment, the South Korean music label, is grappling with multiple challenges as BIGBANG's G-Dragon departs and BLACKPINK's Jennie embarks on a solo journey. The company's stock has been on a downward spiral for four consecutive days.

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YG Entertainment's stock falls following BLACKPINK Jennie’s label debut and G-Dragon's exit YG Entertainment's stock falls following BLACKPINK Jennie’s label debut and G-Dragon's exit

YG Entertainment has recently faced a series of challenges that have left investors worried and K-Pop fans with mixed feelings. BIGBANG's G-Dragon, a long-term member of the agency, has left, and Jennie from BLACKPINK has announced her own venture into the music industry.

Although BLACKPINK has renewed their group contract with YG Entertainment, the individual contract negotiations of the members are yet to be revealed. YG Entertainment's stock has fallen for four consecutive days, closing at 52,000 won (around 40 USD) on December 22.

The departure of G-Dragon has been identified as a major factor behind the 5.11% decline, causing a loss of about 83.5 billion won (around 64 million USD) in the company's market capitalization which now stands at 963.9 billion won (742.6 million USD). G-Dragon, on December 21, signed an exclusive deal with Galaxy Corporation.

Jo Sung Hae, the director of Galaxy Corporation, at a press conference, highlighted G-Dragon's scheduled return in 2024. In the midst of falling stocks, YG Entertainment received another blow when BLACKPINK's Kim Jennie launched her own label, OA, on December 24.

Jennie, expressing her excitement about her solo journey in 2024 with OA, asked for support for her new venture and for BLACKPINK. This has sparked speculation about possible solo ventures from other BLACKPINK members.

Edited By: Puja Mahanta
Published On: Dec 25, 2023