YG Entertainment stock is taking a hit amid ongoing 'Burning Sun' allegations.
Notably, YG Entertainment stock price dropped more than 14 percent on March 11, the largest ever drop for the agency since they were first listed on KOSDAQ. The stock price continued to decline on the 12th and in just two months, YGE has lost over 834 billion won (~$815,000,000) with 652.9 billion lost between January 2nd and March 12th.
The biggest reason for the plunge in share price is due to Big Bang member Seungri's scandal. The incident that first began at the end of last year over club 'Burning Sun' has now spread rapidly to include illegal drugs, rape, tax evasion, police collusion, prostitution, hidden camera crimes not only involving Seungri but other artists in the entertainment industry as well. YGE has expressed their apologies to the public with the termination of Seungri's contract but the public is hoping the case will be investigated fully until the end.
In fact, YG Entertainment, as a management company, has been under public scrutiny for a long time for various scandals involving smuggling drugs, abusing drugs, tax evasion, and even recently former Sechskies member Kang Sung Hoon was accused of fraud, embezzlement and intimidation. G-Dragon has been in the media regarding preferential treatment in the military and former producer Kush recently received a five-year imprisonment judgement on charges of selling and abusing drugs. This has left a huge stain in the company image but not as huge as the ongoing 'Burning Sun' controversies.
Yang Hyun Suk, the representative CEO of YG Entertainment who usually stays active on SNS as a way to speak to the fans and the public has gone silent on SNS.
It seems like the controversies involving YG will not be slowing down anytime soon as netizens are now calling for investigation into YG Entertainment, Yang Hyun Suk and all their artists.
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Look, I know everyone is worried about the other artists. I agree that they've done nothing wrong and being from the same label as someone isn't a crime. However, sponsers, affiliantes, etc. leaving is justified. Seungri was a major face for the label. His actions, no matter how much we say were his own, aren't just his own. He represents YGE as much as the rest of Big Bang and Yang Hyun Suk.
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On top of this, the investigations into the company makes sense (however, investigating the artists doesn't). Yang Hyun Suk / YGE (I forget which it is) holds 75% of shares within some of Seungri's business affairs. They're his management company. It's hella hard to believe no one, especially YHS, didn't know something else was going on. Now, the artists didn't do anything wrong as far as we know. They need to focus on Seungri and those in the chats before trying to target other people. There's evidence against these people, there isn't against other YGE artists.
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