South Korea’s Fair Trade Commission has launched an investigation on charges of power abuse in large entertainment firms such as SM Entertainment, YG Entertainment, and Hybe.
On Wednesday, July 5, the price of shares of K-pop agencies dipped briefly after South Korea’s antitrust watchdog initiated an investigation.
As per South Korea’s local news publication Yonhap News, the country’s Fair Trade Commission launched an investigation over allegations of power abuse in large entertainment agencies. The report notes that government agencies have sent “examiners” to the offices of SM Entertainment, YG Entertainment, and Hybe.
As per Yonhap, these companies allegedly violated the nation’s “subcontracting law” by using verbal contracts instead of written documents. Additionally, they have also been delaying payments while producing merchandise and albums.
Hybe, the company representing BTS, experienced a drop in its shares, with the value declining by as much as 3%. Similarly, SM Entertainment, another entertainment agency, saw its shares fall to a low of 2.19%. However, both companies managed to recover some of their losses by the midday break on Wednesday.
On the other hand, the shares of YG Entertainment, which manages the K-pop girl group Blackpink, had a smaller decrease of up to 1.49%, but later reversed its course and traded 2.23% higher. Note that the official developments aren’t yet confirmed.
More About K-Pop Entertainment
K-pop, short for Korean popular music, is a type of music that started in South Korea and is now a significant part of its culture. It encompasses various styles and genres from different parts of the world, including pop, hip hop, R&B, rock, jazz, gospel, reggae, electronic dance, folk, country, disco, and classical, alongside its traditional Korean music influences. The term “K-pop” gained popularity in the 2000s, particularly in an international context.
The KPOP and Korean Entertainment ETF is an investment fund that consists of a portfolio of 30 stocks. These stocks primarily represent entertainment management companies that are responsible for managing popular K-pop bands. Some of the well-known bands included in this ETF are BTS, BlackPink, and Twice. The agencies associated with these bands are HYBE, YG Entertainment, and SM Entertainment.
Earlier this year, the K-pop group tripleS from South Korea released their newest album called “Assemble”, and it has received a lot of support from their dedicated community. This pop group is made up of 24 members, and their popularity in the world of K-pop is steadily growing.
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