YG is in a difficult situation when G-Dragon (Big Bang) and BlackPink members do not renew their individual contracts.

In recent days, YG’s stock price has continuously decreased. According to the Korean Exchange on January 3, YG reached 47,550 won, down 6.58%, equivalent to 3,350 won, in the previous day’s trading on the KOSDAQ market.

The reason is because G-Dragon (Big Bang) and all members of BlackPink terminated their individual exclusive contracts with the company. In addition, Ahyeon – the key Korean member of the rookie girl group Baby Monster is no longer in the lineup.

Among the four major entertainment companies in Korea including HYBE, SM, JYP and YG, YG is the only company to see a significant decline in stock value. Among them, the biggest reason still comes from BlackPink’s departure – when members Jennie, Jisoo, Rosé and Lisa only renewed their group contracts, not continuing to sign individual contracts.

Currently, Jennie and Jisoo have announced the development of independent careers through their own companies. In November 2023, Jennie established her own brand, OA (Odd Atelier). Meanwhile, Jisoo is expected to continue working solo under her brother’s Biomom brand – specializing in health supplements for infants.

The departure of BlackPink members puts YG in crisis. Photo: YG

Analysts in Korea predict that the consequences of BlackPink’s personal contract cancellation will negatively impact investor psychology. According to experts, investors should be cautious when buying YG shares in the near future, because there is no certainty about when this company’s shares will recover.

However, analyst Kim Hye Young assessed that YG shares should still be “buyed” but lowered the price significantly, from 100,000 won to 70,000 won. “With the cancellation of individual contracts of BlackPink members, the gap in YG’s revenue is clearly shown. The direction of YG stock price will depend on the success of Baby Monster – the group considered a dynamic group. YG’s main growth force” – Kim Hye Young said.

Meanwhile, analyst Im Su Jin commented that the market expected at least one or two BlackPink members to renew their contracts, but that did not happen. This is a big cause of frustration with investors. “When BlackPink leaves, the direction of YG stock price will be decided by Treasure and Baby Monster, but currently there are no clear signs of upward momentum.”

Thus, when BlackPink members decide to go their separate ways, the burden on Treasure and Baby Monster’s shoulders is increasing because the group’s level of success will greatly affect the company’s revenue. Accordingly, all attention is currently focused on Baby Monster – the rookie group scheduled to release a new single on February 1.

Baby Monster is the group that “bears the brunt” of the company’s revenue fluctuations. Photo: YG

The question is whether Baby Monster has enough influence to achieve achievements comparable to BlackPink? Despite the fact that the group’s initial fan base was formed with about 60,000 people – considered an impressive number in the first month of debut, or that the group sold more than a million albums – similar to Le Sserafim – girl group under the management of Source Music.

However, the absence of Ahyeon – the “trump card” in the group is considered a significant variable. Media reviews say that right before Baby Monster debuted, Ahyeon was already a famous member. Not only does she have the voice and choreography, but the beauty of the young singer is also similar to her senior Jennie. Therefore, her return is expected more than ever, seen as a potential “catalyst” for YG’s shares.

However, Ahyeon’s return has not yet been confirmed. According to CEO Yang Hyun Suk, due to health reasons, the female singer’s return time is still uncertain and they will make a public announcement later. This is the reason why many YG shareholders expressed frustration. Despite lingering speculation about how BlackPink’s contract extension would affect stock price movements, uncertainty appears to have increased rather than decreased in the face of continued bad news.

Dubbed the group’s “trump card”, Ahyeon was absent on the day Baby Monster debuted. Photo: YG

Some investors even asserted: “The announcement of BlackPink’s group contract renewal was made after the deadline, and the non-renewal of individual contracts was revealed during the year-end holiday. Date Baby Monster’s launch was also delayed by 2 months. This is the reason why the stock price cannot grow.”

In fact, YG investors sold a total of 11.7 billion won and 6.3 billion won in stocks, while individual investors alone took the opportunity to “sell off” stocks to avoid losses. hole. This shows that the issue of contract renewal with most famous music groups is always a difficult “move” for the management company.

To be able to overcome fluctuations in stocks, large companies in Korea such as HYBE or SM, JYP need to have a good management structure to maintain renewals, instead of facing an “uncertain” situation. Falling like YG is currently.