INDIO, CALIFORNIA – APRIL 15: (L-R) Jisoo, Lisa, Jennie, and Ros é of BLACKPINK carry out at the Coachella Stage throughout the 2023 Coachella Valley Music and Arts Festival on April 15, 2023 in Indio, California.
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Shares of K-pop companies dipped briefly on Wednesday after a reported examination by South Korea’s antitrust guard dog.
South Korea’s Fair Trade Commission released an examination into claims of power abuse in the big home entertainment companies, South Korean regional media Yonhap News reported Wednesday, mentioning unnamed market sources.
The report stated federal government companies sent out “examiners” to the workplaces of Hybe, SM Entertainment, YG Entertainment, according to a CNBC translation of the post.
Yonhap reported that these business have actually presumably breached the country’s “subcontracting law,” consisting of utilizing spoken agreements rather of composed files and postponing payment when producing albums and product.
Hybe, the firm behind BTS, saw its shares fall as much as 3%, while SM Entertainment fell as low as 2.19%. Both stocks pared a few of their losses by lunch break on Wednesday.
YG Entertainment, which handles lady group Blackpink, saw a smaller sized loss of as much as 1.49%, however reversed course to trade 2.23% greater.
When gotten in touch with by CNBC, South Korea’s FTC stated they might not validate or reject the Yonhap report. Hybe stated that it has no remarks, while YG Entertainment and SM Entertainment did not react to demands looking for remarks to the Yonhap report.
— CNBC’s Kimberly Kao added to this report.
