YG Entertainment founder buys $15 million in company stock

Industry

Published: 23 Jan. 2024, 16:14 Updated: 23 Jan. 2024, 16:52

YG Entertainment founder buys $15 million in company stock

From left, Blackpink members Lisa, Jisoo, Rose and Jennie in the Netflix original documentary ″Blackpink: Light Up The Sky″ [NETFLIX]

YG Entertainment founder and chief producer Yang Hyun-suk purchased 20 billion won ($15 million) worth of his own company's shares in a bid to boost the K-pop agency's flagging stock prices.

Yang has bought a total of 461,940 shares at an average price of 43,305 won per share since last Thursday, the company announced in a public disclosure Tuesday, pushing up the founder's total stake to 19.3 percent. Yang is his company's largest shareholder.

YG's shares tumbled 11.39 percent compared to the last trading day of Dec. 28 following the announcement that Blackpink members had decided to pursue separate career trajectories for their solo activities and declined to renew their individual contracts with the agency.

Shares closed at 45,100 won on Tuesday, rising 0.33 percent from the previous trading day.

Yang’s move is an attempt to project his confidence in several projects that the company plans to unveil this year, according to YG Entertainment.

The company also hinted of a new K-pop debut this year.

“YG Entertainment has a goal to announce at least one new rookie K-pop group this year, hand-picked through global auditions,” the company said in a statement. “Artists’ diverse activities are scheduled this year, as well as new marketing strategies targeting the global market that will secure new growth momentum and continuously enhance shareholder value.”

YG’s rookie girl group BabyMonster, which debuted last November with the single “Batter Up,” is expected to be more active in the K-pop scene this year with the release of a new single next month and its first EP on April 1.

Boy band Treasure will wrap up its Japan concert tour by March and is slated to release its third EP in Japan next month.

In a similar move, JYP Entertainment founder Park Jin-young, the largest shareholder of his label, bought 5 billion won worth of his own company's shares last week in an aim to boost stock prices that have fallen due to the underperformance of its girl groups' album sales, including those of ITZY and NMIXX.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]