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On Tuesday, February 27, SM Entertainment's stock prices were reported to have dropped down on the KOSDAQ Market, which stands for Korean Securities Dealers Automated Quotations. This sock plummet was recorded on the same day as the confirmation regarding the dating news between aespa's Karina and the K-drama actor Lee Jae-wook.
The agency's stock currently stands at 77,900 KRW, a 34.7% drop. It also stands at the lowest rate since February 14, when the agency closed with 77,400 KRW. While the reduced stock prices might be a result of the mixed reactions to the dating news between the two Korean celebrities, other analysts have also observed SM Entertainment's generally poor performance with their recent activities.
SM Entertainment's stock was reported to have plummeted by 34.7% following the dating confirmation between aespa's Karina and the K-drama actor Lee Jae-wook
On February 27, Dispatch released an article exposing the relationship between aespa's Karina and the K-drama actor Lee Jae-wook. The released article mentioned that the two first became acquainted at the Prada Fashion Show, which was conducted in Milan on January 14, where they were seated next to each other. While fans loved to see the interactions between the two, they didn't expect their dating rumor.
Dispatch also stated that the two met up regularly after their return to Seoul, Korea, after wrapping up the show in Milan. The two often hung out around Lee Jae-wook's neighborhood and would go on late-night walks together, Dispatch reported. Following the rumors, SM Entertainment and C-JeS Studios, Lee Jae-wook's agency, confirmed the news.
SM Entertainment reported,
"They are getting to know each other."
C-JeS Studios stated in an interview with SPOTV News,
"The two are now getting to know each other. The actor is filming and as it is his private life, we ask you to treat him with warm eyes and respect."
Following the confirmation, SM Entertainment's stock prices seem to have been affected by the reactions expressed by netizens as it faced a downfall of 34.7%, recording 77,900 KRW. This is the lowest since February 14, when the agency recorded 77,400 KRW. Previously, the Korean investment company, Daishin Securities, which shares stocks with the entertainment agency lowered its target stock prices by 25%, from 160,000 KRW to 120,000 KRW.
The business analyst, Lim Su-jin, commented that the agency's expansion plans have been delayed due to its poor performance. However, she also expressed confidence in the agency's main business, as fans have been enthusiastically engaging with the SM artists' scheduled comebacks.
"The label expansion plans have been delayed in the medium to long term, making the timing of the anticipated full-scale entry into the Western market uncertain. A multiple downward regulation is inevitable. The main business is still positively evaluated. Regarding NCT Dream, who is scheduled to make a comeback in March, despite some fans moving to RIIZE's fandom, the operational profit margin of low-year IP is high. The investment recommendation remains 'buy.'"
While there has been a slow progression regarding the stock value for SM Entertainment in recent days, pausing their expansion plans, given that the analyst Lim Su-jin expressed a positive outlook on the agency's larger investment performance, the plummet most likely stands as a temporary occurrence.
