Four major K-pop labels saw their stocks drop by an average of 19% in 2024, a turn from an average of 30% gain in 2023.
In a report by Billboard, the four labels demonstrated a lackluster performance, which "fared worse than the South Korean stock index."
Despite their expansion from home soil with the proliferation of K-pop across the globe especially in the Americas, the outlet reported that the agencies failed to reap their respective fruits, partially due to a lack of new releases and concerts.
Read more: SHINee's Key Donates 50 Million Won to Pediatric Care In Children's Hospital Where His Mom Works
Most prominent was BTS' label, HYBE, which saw a precipitous 99% drop in its third-quarter net profit on lower concert and recorded music revenue, in juxtaposition with its previous second quarter, where the company had managed to achieve a personal record for quarterly revenue.
HYBE's stock also fell 17.2% to 193,400 won (around $131) in 2024 as it found itself embroiled in a number of internal controversies, including NewJeans' contentious contract termination.
The company's chairman Bang Si Hyuk is also reportedly being investigated by South Korean regulators for brokering a "profit-sharing deal with early investors that led Bang to realize a $285 million profit from the company's 2020 initial public offering."
Three other major companies, SM Entertainment, JYP Entertainment, and YG Entertainment fared no better.
SM Entertainment, home to groups NCT, Red Velvet, and aespa, saw a 17.9% drop in stock value to 75,600 won (around $51) with net profit falling over 95% on 9% lower revenue in the third quarter.
JYP Entertainment, proprietors to GOT7, Stray Kids, and iTZY, tanked 31% in stock value to 69,900 won (around $47).
YG Entertainment, managers of BLACKPINK and BABYMONSTER, fared the best out of the agencies, often termed "The Big Three" for their dominance in the Korean entertainment industry.
YG stocks dipped 10% to 45,800 won (around $31) in 2024, with total revenue dropping off by 42% "year over year while a 14.8 billion won ($10 million) net income in the third quarter of 2023 turned into a 937 million ($636,000) net loss."
While Billboard chalked up some of the factors to poor performance by Korean stocks across the board (the KOSPI fell 9.6% in 2024), the outlet credited much of the blame to the country's political turmoil around Prime Minister Yoon Suk Yeol, who declared martial law on December 3. The unilateral move had a sharp impact on the KOSPI, which fell 4.3%.
Since then, South Korea has faced much strife with the impeachment of Yeol as well as the impeachment of Han Duck-soo, the appointed acting president, who was let go on December 27.
The Korean won hit its all-time low since March 13, 2009, during the global financial crisis trading at 1,467.5 per dollar, according to Korean outlet Yonhap. In 2009, the won stood at 1,483.5 per dollar.
