YG Stock Price Plunged 22% In September Over BLACKPINK, G-Dragon Contract Issues

YG Entertainment reportedly saw a decrease in stock price over the past month amid the uncertainty of BLACKPINK's contract renewal and the departure of K-Pop superstar G-Dragon.

The Korea Exchange revealed Monday that the South Korea-based entertainment label's stock price plummeted to 22.49% in September alone. Its standing at the KOSDAQ market — a known trading board in the country — also fell by about 2.79% on the 27th of the month, per Maeil Business Newspaper.

This came after the decision regarding BLACKPINK's renewal with YG was moved to a later date, though the former's initial 7-year contract already expired in August. There were also rumors about members Lisa, Jisoo and Jennie signing with different agencies while Rosé remained with YG. But the company continued to insist that nothing was confirmed, and the negotiations were still ongoing.

In June, YG's stock price fluctuated after BigBang's G-Dragon's contract with the company expired. At the time, it was unclear if he would be signing a contract — or already signed — with another agency. However, he did hint at working on a new album in an interview with ELLE Korea.

Now, the K-Pop community speculates that the 35-year-old South Korean rapper scored a deal with Warner Records. In photos obtained by Allkpop, he was allegedly seen visiting the company's headquarters in Los Angeles and welcomed with an LED screen with his photo on it. Nothing, however, has been officially announced.

The stock price of entertainment companies is often dependent on the performance and activities of its major artists, with its future profits determined by whether these artists would continue working with the company. An unnamed analyst in the field further explained, "There is a need for the issue of celebrities' whereabouts to be disclosed in the sense that information must be provided fairly [but] it is difficult to know about celebrities' profits from albums, performances, and advertisements, as they are 'trade secrets.'"

Currently, a comprehensive disclosure regulation is implemented by the Korean exchange. This is a system where corporations disclose important information voluntarily to the public market. There must be a disclosure when an exclusive contract with a high-profile celebrity is terminated early, especially since it has a significant impact on the sales and profits of the company.

"We are in constant communication with the company regarding artist contract renewal issues," a representative from the exchange said, adding that entertainment companies are obliged to announce if their artists are expected to enlist in the country's mandatory military service or if their contracts would not be renewed.

As of late, YG has yet to release an official statement regarding BLACKPINK's contract.