The recent issues with former BIGBANG member Seungri are causing his former agency to seriously evaluate the way they manage their artists.
YG Entertainment stock price took a sharp dip following Seungri’s scandals and issues revolving around his businesses, the agency continues to suffer from financial loss and public backlash due to that even after they had terminated his contract upon his request.
On March 21st, financial analyst Lee Ki Hoon of Hana Financial Investment discussed the sharp decline in YG’s stock price since the controversy started.
Seungri was a part of BIGBANG which is the biggest source of revenue to YG Entertainment, their stock price is dependant on them which explains the sharp dip in stock price following Seungri’s controversy.
It is believed that they will begin to control their artists’ business in the future to prevent such a situation from ever occurring again.
Lee Ki Hoon says,
“It was thought that there was no need to control the artists’ personal businesses until now, but they’re reflecting after the issues.
In the future, there will be in control in this area and they will try to re-build trust in the market through a new system.”
According to Lee Ki Hoon, the artists’ will have more frequent comebacks in the future, about twice a year in an attempt to rebuild their trust with the general public which has been critical of the agency after Seungri’s issues.
YG Entertainment is undergoing special tax evasion investigation right now and on March 21st, a shareholder meeting was held to determine if the current CEO, Yang Min Suk would remain in his position or not. He remained the CEO following the meeting, read more about that here.
How do you feel about this?
My personal thoughts
It might seem invasive and extremely controlling but I do understand the reasoning behind this decision, one man was able to shake an entire foundation and rock a label that has been around for more than 20 years with the issues that he personally brought upon himself without the interference of his company.
They lost investors because of him and the stock price has never fully recovered since the issues arose, so I understand the need to take such drastic measures.
No one said being an idol was easy, but it is a career decision after all. This industry is not going to change any time soon, idols have to adhere to social and legal (naturally) standards to be able to make money.
Seungri affected everybody and extremely harmed YG’s reputation. He caused so much damage that will take some time before they’re able to fix it, it will leave a mark on their record forever, that’s something they’ll never be able to erase.
It is extremely stuffy and cornering being an idol, but there is the promise of being famous and rich while dancing and singing, this is why many jump ship.
I used to be more critical of the way agencies set rules but I’ve come to understand these decisions after I started working managerial positions in companies myself, now I understand why certain business decisions are made, also, from following Kpop for so long I understand after how one simple idol mistake can literally ruin dozens of lives instantly.
If this wasn’t YG, this agency would’ve never been able to recover.
I still firmly believe YG is the weakest in terms of their style of management among the big three but I liked that they trusted their artists enough with business. Now that they’re planning on interfering, I understand why, its about their livelihood, you can’t blame them for doing that.
If idols don’t like this, they can simply nullify their contracts and exit the company. I know this is harsh but idol life is difficult and extremely restrictive in nature. Its sad that this is the reality but this is what they have to work with.
I hope that any young teenager who wants to become an idol read on these cases and educate themselves and read the contract terms with a lawyer before signing up. This is too risky; I can’t believe some parents are willing to let their children suffer through such circumstances to become idols…..
The bottom line is one question remains…. is it worth it or not? I would like to ask Kpop idols that question, I wonder how many would say ‘yes.’