YG Entertainment Loses +$100M USD In One Day Due To Seungri Scandal
Being one of the “Big 3,” YG Entertainment has rarely seen their stock prices take a large dip but they recently suffered a huge loss. On March 11, YG Entertainment ended their day with their stocks at 37,150 KRW (about $32). This shift in stock price was a 14.10% drop since the day before.
Although it may not seem a lot, the drop is estimated to have caused a loss of over 100 million dollars. Making matters even worse for the company, their stocks were chosen for short-stock selling the next day. Short-stock selling occurs when investors sell their own stock in the hopes of buying it back later at for a lower price.
This is the first time since November 23, 2018, that YG Entertainment’s stock prices have fallen below 40,000 KRW.
YG Entertainment wasn’t the only company to suffer a loss on the stock market on the same day. FNC Entertainment also took a pretty big hit when their stocks fell 11.32%.
The fallen in stock prices for both companies is believed to be connected to the Burning Sun Case as news of the hidden camera chatroom was released around the same time. Additionally, since the investigations first began back in January, YG Entertainment’s stock has fallen more than 20% in the last three months.
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