The War of Female Idol Stars That Dramatically Boosted Entertainment Stocks

Blackpink and Twice Comeback Boosts
YG and JYP Stock Prices Rise
HYBE Hit by BTS Hiatus
NewJeans Surge Leads to Stock Recovery

▲Female idol group 'NewJeans'

[Asia Economy Reporter Kwon Jae-hee] The entertainment stocks are stirring up due to the ‘war of the stars’ sparked by female idol groups. The comeback of the 2nd generation girl group Girls' Generation in early August ignited the fire, followed by BLACKPINK’s new song release, and the announcement of TWICE’s comeback on the 26th, with each agency’s representative girl groups simultaneously kicking off their activities. Adding to this is the whirlwind caused by rookie groups like NewJeans, drawing attention to entertainment stocks after a long time.

As of 9:13 AM on the 25th, YG Entertainment’s stock price was traded at 60,200 KRW, up 3.44% from the previous trading day. YG Entertainment’s stock price has risen nearly 45% compared to the lowest point of 41,750 KRW on June 23. At the same time, JYP Entertainment (JYP Ent.)’s stock price also rose 2.65% from the previous trading day to 62,000 KRW. JYP Entertainment also rose about 30% from the lowest point of 47,400 KRW on June 23. HYBE, which suffered nearly a 30% hit in stock price due to BTS’s temporary suspension of activities, is also on the rise thanks to the whirlwind of rookie girl group NewJeans. HYBE recorded 177,000 KRW, up 0.57% from the previous trading day, which is about 25% higher than the lowest point of 138,000 KRW on June 23.

The driving force behind the rise in entertainment stocks is not only the success of girl groups but also the strong second-quarter earnings. On a consolidated basis in Q2, HYBE recorded sales of 512.2 billion KRW and an operating profit of 88.3 billion KRW, marking the highest quarterly performance ever. JYP also achieved record-high results again with sales of 67.8 billion KRW and an operating profit of 24.3 billion KRW following the previous quarter. SM and YG posted sales of 184.4 billion KRW and 76.0 billion KRW, and operating profits of 19.4 billion KRW and 9.3 billion KRW respectively, meeting market expectations.

The outlook is also positive. Comebacks of idol groups representing each agency are anticipated, and with the resumption of overseas performances, earnings improvement is expected to continue. Shin Han-hae, a researcher at Shinhan Financial Investment, said, "All four major entertainment companies are smoothly undergoing artist generation changes and possess global fandoms that can overcome inflationary conditions," adding, "With the full-scale resumption of concerts in the second half of the year, growth in high-margin intellectual property (IP) sales such as albums, digital music, and merchandise (MD) is expected to continue."

This content was produced with the assistance of AI translation services.