“K-pop Star Rejects Two Lucrative Offers from Agency, Uncertainty Looms”
In a significant blow to YG Entertainment, shares of the K-pop agency took a nosedive of nearly 9% on Friday following reports that Blackpink member Lisa has turned down a contract renewal offer from the company.
This steep drop marks YG’s largest one-day stock decline since September 28, 2022.
According to reports from South Korean news outlet Star News, Lisa, the Thailand-born sensation, has declined not one but two offers from YG Entertainment. These offers were reportedly valued at a staggering 50 billion South Korean won, equivalent to $37.6 million.
In response to these reports, a YG spokesperson provided a statement to South Korean media outlet TVReport on Friday. The spokesperson, as translated by Google, said, “The company is discussing renewing our contract with Lisa. The rumor has not been officially confirmed.”
CNBC has reached out to YG Entertainment for further comment, but as of now, there has been no response from the agency.
This latest development comes after earlier reports in July hinted at difficulties in reaching an agreement regarding Lisa’s contract extension with YG Entertainment.
At that time, South Korean media outlet Newsen had reported that YG had acknowledged ongoing discussions regarding contract renewal. However, another outlet, Munhwa Ilbo, noted that “the difference between the two sides is quite large.”
Blackpink, consisting of members Jisoo, Jennie, Rosé, and Lisa, has been one of YG’s most iconic and successful K-pop groups.
These developments occur as Blackpink concludes its “Born Pink” world tour, touted as the largest world tour undertaken by a K-pop girl group. This remarkable tour has drawn an estimated 1.5 million fans across 41 cities since its inception in October 2022.
The grand finale of the tour is set to take place on September 16 and 17 in Seoul.
Typically, K-pop groups sign seven-year contracts, implying that Blackpink’s contract with YG was expected to expire in August. However, YG Entertainment has yet to confirm any contract renewals with the group’s members, leaving fans and investors alike in suspense.