Minzy’s Departure From 2NE1 Shows Little Effect on YG Stocks
With Minzy’s departure from 2NE1, many have been concerned with how the event would affect the group as well as the company.
Typically, a member’s departure from a group has resulted in stock prices plummeting on the day the news is revealed. This happened to SM Entertainment when Luhan left EXO and when Jessica left Girls’ Generation.
Likewise, datings news and controversies can also lead to a dip in stocks as seen in JYP Entertainment’s experience with Lee Min Ho and Suzy’s dating news as well as Tzuyu’s Taiwan-China controversy.
However, it appears as though Minzy’s departure will not have a significant impact on YG Entertainment’s stocks. The closing price for YG’s stocks on April 5 (the day of news about Minzy’s departure was confirmed) only fell 950 won (approximately $0.82) which is about 2.42 percent. The resulting price was 38,350 won (approximately $33.19).
Lee Ki Hoon, a Hana Financial Investment researcher commented, “Last year, 2NE1’s sales amounted to about 2 percent. Most of it was from copyrights, so Minzy’s departure will not result in a change in [stock] performance.”
He continued, “The direction of the stocks will depend on YG Plus’s cosmetics sales growth and losses. There’s an opportunity to invest and make up for the stock dip following Minzy’s departure through the cosmetics division’s growth for the second quarter.”