SM Plummets Amid NCT Prostitution Rumors, Rebounds on 'Baseless' News [Featured Stock]

SM's stock price, which had plummeted after rumors of prostitution involving the main idol group NCT spread, is rebounding in early trading on the 5th.

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As of 9:08 a.m. on the 5th, SM is trading at 84,900 won, up 3.66% (3,000 won) from the previous day. On the previous day, SM closed at 81,900 won, down 8.18% (7,300 won), after a sharp drop about 40 minutes before the market closed. This was the largest drop so far this year. Amid speculation about the cause of the sharp decline, rumors that NCT's Johnny and Haechan engaged in inappropriate behavior such as prostitution and drug use in Japan were pointed out as the cause of the stock price drop. These rumors spread rapidly online and appear to have influenced the stock price.

SM stated, "Currently, provocative rumors about Johnny and Haechan involving prostitution, drugs, and other unspeakable content are being indiscriminately spread and reproduced online. Upon verification, these are completely false and constitute criminal acts that seriously damage the artists' reputations." The company added, "In relation to this, indiscriminate rumor creation and malicious defamation against NCT and other affiliated artists including Kim Heechul continue," and announced legal action. "We have already collected sufficient evidence regarding numerous posts related to these matters, and we will not tolerate such criminal acts. Regardless of nationality, we plan to legally punish those involved without leniency or settlement."

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