From Lee Sun-kyun to G-Dragon... Entertainment Stocks Plunge Amid Widening Celebrity Drug Scandal

by Heo Midam

Published 26 Oct.2023 11:14(KST)

YG, HYBE, JYP, and Other Entertainment Stocks Decline One After Another

As the drug scandal in the entertainment industry spreads, entertainment stocks are collectively plunging. Following actor Lee Seon-gyun, G-Dragon (Kwon Ji-yong) of the group Big Bang is also under police investigation for drug charges, highlighting the growing drug risk in the entertainment sector.

Big Bang G-Dragon. [Image source=Instagram]

As of 10:30 a.m. on the 26th, G-Dragon's former agency, YG Entertainment, is trading at 51,000 won, down 3,500 won (6.42%) from the previous trading day.

At the same time, major entertainment companies such as HYBE (7.66%), JYP Ent (5.61%), and SM (3.88%) are also recording declines. Additionally, other entertainment stocks like Cube Entertainment (7.06%), Fan Entertainment (2.94%), and KeyEast (2.44%) are also experiencing sharp drops.

Following Lee Seon-gyun, G-Dragon also booked... Entertainment industry scandal spreads

Actor Lee Seon-gyun. [Image source=Yonhap News Agency·Lotte Entertainment]

The collective plunge in entertainment stocks appears to be related to the recent drug scandal in the entertainment industry. The day before, the Incheon Police Department's Narcotics Crime Investigation Division announced that G-Dragon was booked and is under investigation for violating the Narcotics Control Act. G-Dragon, who gained great popularity as the leader of Big Bang, was previously investigated by prosecutors in 2011 for marijuana use but received a suspended indictment at that time.

Earlier, Lee Seon-gyun was also booked without detention for violating the Narcotics Control Act. However, the police explained that G-Dragon's case is separate from Lee Seon-gyun's, and specific investigation details such as the type of drugs cannot be disclosed.

Meanwhile, with multiple adverse factors overlapping, concerns about the overall entertainment industry are growing. Although G-Dragon ended his exclusive contract with YG Entertainment last year, he still appears to be affecting the stock price.