YG Entertainment is not doing that well these days!

Ever since “Burning Sun” scandal and the subsequent chatroom conversations that triggered an official police investigation, YG has been suffering seriously.





Ever since the whole issues began until now, YG stock price plummeted by more than 25%, to make matters worse; investors are looking into options to sue Yang Hyun Suk (founder of YG) for the damages incurred.

It is reported that since “Burning Sun” issues until now, YG lost around 105 billion won ($100 million). Adding, big foreign investors including LMVH pulled out their 50.3 billion won investment ($48.5 million). Other investors also pulled their investments totaling the loss to 55.3 million won.

Because of the huge loses since Seungri’s issues and scandals, investors are demanding compensation from YG on the stock debate bulletin board because of how  much they have lost due to these issues.





That’s not the end of the story; civic groups like “Measures for the People’s livelihood” filed a complaint to the Seoul Central District Prosecutor’s office regarding Yang Hyun Suk negligence involving Seungri scandal, they’re also filing a complaint against CEO Lee Dong Hyung of MakeUs Entertainment which used to be the home of singer Jung Joon Young.

A representative from the committee explains their decision to file the complaint. The representative argues that a public figure who has such great influence in society shouldn’t be protected if they lack ethics and morality.

The representative says,

“Companies have been consistent in denying involvement in the event of inappropriate remarks and immoral acts made by their celebrities. We need to make it clear that the company is also held responsible.

We need strict measure for entertainers and agencies that have forgotten this fact.”





This is YG Entertainment biggest crisis since its inception. Netizens are extremely critical of YG at the moment.

Source: (A)

What do you think of this?


My Personal Thoughts

The article might seem absurd but let us just think this through.

There are a lot of ways you can look at this, as an international kpop fan and as an investor.

Logically speaking and from a distant perspective the fact that people are holding YG and Yang Hyun Suk responsible for this is absurd by all measures. Seungri is an adult and when he did all those things he was an adult in his mid-twenties. If he made mistakes, he should pay for it not the agency.

This is true but its one-sided that’s because we’re talking about Kpop its not American pop, its Kpop.

While its true Seungri will bear the responsibilities for his actions regardless, YG was hit so hard because of one human being. They lost around 100 million dollars since the issues started, how can one man do this to an agency you ask?

You have to take into consideration that you’re talking about South Korea.

In South Korea a simple mistake can cost you your career. Simple dating news can ruin an artist and depending on the size of the agency, it can cost the jobs of many people involved.

Seungri knows this, YG knows this and everybody in Korea knows this. This is just how things run there. An outsider might think its absurd but this is how it is, just because your country celebrities get away with a lot of things doesn’t necessary mean Koreans will.

You can say the industry sucks or is restrictive but this is how netizens think and netizens control the market so if they turn their backs on you, you’re done, there is no discussion there.

This is why entertainment agencies place heavy control on their idols because the livelihood of everybody depends on them. This is why there is a dating ban, and so many rules, that’s because doing certain things can get idols in trouble and potentially have disastrous consequences.

If I look at from an investor point of view, I understand why they’d wanna sue.

Kpop fans need to realize investors don’t invest because they just like throwing money at someone; they invest because they want to make money off of companies. I suggest you read more on investment if you want to understand in more details, but in short, shareholders basically control YG and Yang Hyun Suk. They have power.

When they invest large sums of money they get to voice their opinions and make decisions they believe benefits the company, that’s not only the case with YG but with basically all other businesses that have shareholders.

Even if you’re the owner, you need to please these people who choose to believe in you and invest in your company.

The $48 million loss is probably the biggest blow to YG. Stock price goes up and down but he just lost so much money because of Seungri, I bet he’s furious, I’d be furious.

I don’t think YG thought it would turn out this way, no one anticipated what is going on right now. I don’t know if YG knew of what Seungri was doing or not, regardless, he’s paying a hefty price for it.

It’s been three months and so far no YG artist came back with music, YG is going to have to wait until this whole thing calms down before putting out music again because netizens are hella furious right now, he can’t risk it. This means YG’s profit for the first quarter of 2019 is going to be low.