The so-called “Seungri-gate” has reportedly cost the market capitalization of major listed entertainment Kpop companies nearly $538 million. The entire Kpop industry has been affected by investor distrust.
The combined market capitalization of 5 companies, including YG & FNC, has fall down by $520 million since Feb 26 to March 18th.
Investors are also hurt by this as the National Pension Service lost $29.1 million during the 3 wk period, affecting the public & causing public resentment.
The scandal is expected to deal a significant blow to the Hallyu Wave market. As Kpop was the foundation for the Hallyu Wave for 20 yrs, it’s worrisome that this will all be for naught. One loach is dirtying the stream.* *Korean version of “a rotten apple spoils the barrel”
There’s a lot of attention on how this firestorm will affect BTS, who is enjoying immense popularity. They’re having additional concerts at LA, Chicago, NJ, London and Paris. Thankfully, they seem to be unaffected by the Seungri-hate scandal.
Hyundai Research Institute’s report, “Economic Effects of BTS,” analyzed that BTS has an annual impact of $3.66 billion (annual added value=$1.26 billion). Compared to mid-sized companies in 2016, BTS’ effect was 26x bigger (8.9x the added value). They’re now a global company.
Kpop is a key component of the Hallyu Wave industry. And now, Kpop is facing a crisis. Calls for re-establishing the system in the entertainment industry are gaining traction. Above all, there is a lot of criticism about the lack of character and moral education for idols.
Critics say that the system, namely the entertainment agencies, has only produced people who are good at singing and dancing, but hasn’t been interested in developing their character, personality or morals.
This is the time for deep reflection on not only Kpop but the entertainment industry as a whole. In light of this, we need to look at BTS’s success story again. They aren’t members of a big entertainment company or vastly superior than other groups.* *remember this is an op-ed
I want to be careful while saying this, but BTS seems to have received and absorbed character education better than other idol groups. Their song lyrics call on the youth to love themselves and reflect/hope for a better future. This is why the global youth goes crazy for them.
Local broadcasters can’t be free from responsibility from this incident. In 2016, KBS was wrong to let JJY, who was accused of illegally filming his gf, come back to 1N2D so quickly without any verification.
Stock forums are flooded with comments from angry investors saying investors shouldn’t be responsible for a singer’s wrongdoing, demanding compensation for losses. The public is right to be mad bc of the deviant actions of people like Seungri and Jung Joonyoung.
The National Pension Service is literally the money citizens collected for their retirement. The bad behavior of these celebrities doesn’t end with them [bc of the impact on others]. That’s why they should be careful of their behavior regardless of age.