Reports of Contract Renewal Issue Cause YG Entertainment Shares to Drop
Shares of K-pop management agency YG Entertainment experienced a nearly 7% decrease in value following reports that the contract renewal for a member of girl group Blackpink is uncertain.
As of 2:41pm KST, YG shares were traded at 73,900 Korean won, marking the lowest point since May 11 when it closed at 66,700 Korean won per share.
An exclusive report by South Korean media outlet Munhwa Ilbo stated that Lisa, a member of Blackpink from Thailand, has been unable to reach an agreement with YG Entertainment regarding her contract extension.
While YG Entertainment responded to inquiries by stating that contract renewal discussions were ongoing, Munhwa Ilbo reported that “the difference between the two sides is quite large.”
Blackpink, consisting of Jisoo, Jennie, Rosé, and Lisa, has been one of YG Entertainment’s most successful K-pop groups.
The four-member group made its debut with YG in August 2016. Typically, K-pop groups sign seven-year contracts, which means 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 progressing relatively smoothly.
Blackpink achieved several milestones, including being the first Asian act and K-pop girl group to headline the Coachella festival in the U.S., as well as becoming the first K-pop band to headline a major festival in the U.K. at the BST Hyde Park festival.
In addition, Blackpink holds the Guinness World Record for the most-viewed music channel on YouTube for a group, surpassing U.S. pop band Maroon 5 in April.