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K-pop rides high on charts but flops in stock market

K-pop rides high on charts but flops in stock market

SCREENGRAB OF BTS’S MUSIC VIDEO “IDOL”

K-POP boy band BTS has climbed to the top of US Billboard charts, appeared on the Tonight Show Starring Jimmy Fallon and is in the middle of a sellout world tour that’s taking them through 12 countries, including the US and England.

But while the energetic dance group may be riding high, other K-pop stars are finding it harder to reach global stardom in a crowded field. Shares of JYP Entertainment Corp., the agency behind girl group “Twice,” slid a record 20% in Seoul Wednesday after an analyst said the company is likely to miss earnings estimates. That spurred declines in other agencies too.

“The downgrade in the analyst’s estimates is sparking a sell-off by inves tors who want to profit take,” said Lee Seung Hoon, head of equities at DB Asset Management in Seoul. “The sector was the only one in Korea’s stock market that rallied despite the recent rout.”

The $4.7 billion K-pop industry is one of South Korea’s largest cultural exports, and the talent agencies were among the best stock performers in Asia this year. Their gains came crashing down on Wednesday, after Hana Financial Investment Co. analyst Kihoon Lee said new bands may not be as successful as recent groups.

Lee lowered his third-quarter operating profit estimate for JYP, which was worth more than $1 billion in market value yesterday, by 20% from his previous estimate, citing an increase in production costs and smaller-than-expected revenue from fan-meeting events.

YG Entertainment, Inc., manager of girl group “Black Pink,” fell as much as 12%, while SM Entertainment Co. dropped as much as 15%. The declines were the worst for the stocks since at le ast 2012. BTS is represented by privately-held Big Hit Entertainment Co. â€" Bloomberg

Source: Google News K-Pop

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