After Jessica's exit from titan girl group Girls Generation and Luhan's upcoming departure from Korean-Chinese male idol megagroup EXO, SM Entertainment is currently experiencing a dip in the stock market.
Immediately after the controversies surfaced, the stock prices of SM dropped. And now, it has dropped in ranking to YG Entertainment, in terms of market capitalization (market value or stock price multiplied by total shares offered), Allkpop reports.
SM Entertainment, which is one of the biggest talent agency and record label in Korea, has been in the lead for a long time. However, recent scandals involving the agency and its artists, has cause a huge blow on its financial stature.
According to Allkpop, the stock price hit a 52-week low and its market capitalization dropped to 644.2 billion KRW. This puts YG Entertainment, with a market capitalization of 743.3 billion KRW, in the first place. The company's market cap in October 2012 was around 1.4 trillion KRW.
Based on the website's October 10 report, SM Entertainment dropped a total of 15% or 5,450 KRW and is currently trading at 31,200 KRW (around $29) a share.
Meanwhile, YG Entertainment is trading at 49,350 KRW (around $46) a share. On the market capitalization list of KOSDAQ (Korean Securities Dealers Automated Quotations), it ranks at 25 while SM is at the 32nd spot.
Luhan's attempt to terminate his contract with SM and leave EXO has caused an overwhelming response from his and his group's fans. After the news broke, heartbroken fans took to social media to express their thoughts and emotions, with some throwing harsh comments against SM. The hashtag #alwayssupportluhan even became the top trending topic worldwide.
SM Entertainment is home to some of the most well-known K-pop idol groups such as TVXQ, Super Junior, Girls' Generation, Shinee, f(x) and Red Velvet.
YG Entertainment, on the other hand, is home to some of the biggest international K-pop acts such as Big Bang, 2NE1 and Psy.
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