BTS performs during its comeback concert at Gwanghwamun Square in Seoul, March 21. Joint Press Corps
Shares of major K-pop agencies are struggling to gain traction despite a strong rally in the Korean stock market, as one-off, artist-driven events seem to have limited impact on investor sentiment, analysts said Tuesday.
HYBE, the agency behind K-pop supergroup BTS, closed at 248,500 won ($168) on the Korea Exchange, Tuesday, down 0.6 percent from the previous session.
Over the past month, HYBE has fallen 17.76 percent. YG Entertainment and JYP Entertainment declined 3.56 percent and 2.02 percent, respectively, while SM Entertainment rose 0.98 percent, effectively remaining flat.
The benchmark KOSPI has gained 21.14 percent over the same period, highlighting the sector's underperformance.
Hopes for a rebound had emerged following BTS' high-profile concert in central Seoul on March 21. However, attendance fell short of expectations. HYBE had projected about 260,000 attendees, but turnout stood at around 100,000.
Investor sentiment has also been weighed down by recent legal risks surrounding HYBE Chairman Bang Si-hyuk. Police are seeking to refile a request for an arrest warrant against Bang over alleged unfair stock trading, after prosecutors last week rejected an earlier request citing insufficient evidence.
Sentiment also showed little improvement after the four major agencies — HYBE, SM, YG and JYP — unveiled plans on April 16 to set up a joint venture for "Fanomenon," a large-scale K-pop festival modeled after the Coachella Valley Music and Arts Festival.
Analysts say the recent share price weakness reflects a broader shift in investor focus from artist-driven events to fundamentals.
"The joint venture will require upfront investment. With no clear returns yet, it's too early to say whether it will be a meaningful catalyst. In this sector, earnings visibility matters more than short-term event-driven momentum," said Park Jun-hyung, an analyst at SK Securities.
Source: Korea Times News
