The confirmation of the relationship between Aespa’s Karina and actor Lee Jae-wook may have had repercussions beyond the emotional spectrum of fans, as SM Entertainment’s market value saw a decline by a staggering $50 million just as the news broke.
Fans of the K-pop sensation and the esteemed actor found themselves experiencing a mix of emotions, and so did the stakeholders invested in Karina’s agency, SM Entertainment.
As the day unfolded, SM Entertainment’s shared saw a sharp decline, closing at 77,900 won (approximately Php 3,280), marking a 3.47 percent decrease compared to the previous day. The market capitalization witnessed a loss of 66.7 billion won in a single day, plummeting to 1.86 trillion won.
The rollercoaster ride for SM Entertainment shares began at 80,700 (approximately Php 3,399) won but took a nosedive after 10:20 a.m. Following the exclusive report from local media outlet Dispatch, which unveiled the romantic involvement of Karina and Lee Jae-wook, shares hit as low as 76,700 won (approximately Php 3,230) around 1:30 p.m.
Remarkably, both parties acknowledged their relationship without resorting to the customary “we’re just friends” explanation, a rarity in the entertainment world. But the revelation of Karina’s dating status may have had a tangible impact on the agency’s shares, given her pivotal role as one of the core members of Aespa, a dominant force in the fourth-generation girl group scene championed by SM Entertainment.
According to a report from Mirae Asset Securities, Aespa is anticipated to contribute significantly to SM Entertainment’s concert revenue, projecting a 23 percent share of the total, second only to NCT’s 45 percent. This surpasses the contributions of other prominent SM artists, including SHINee, TVXQ, Taeyeon, and Red Velvet.
Regarding streaming revenue, Aespa is poised to claim a 14 percent share of the total, securing the third position behind NCT (26 percent) and Super Junior (22 percent). This places Aespa ahead of other renowned SM acts such as Exo, Red Velvet, Girls’ Generation, and SHINee.
Despite the initial market turbulence, SM Entertainment shares had a swift rebound. As of 10:43 a.m. today, the shares are trading at 80,100 won, showcasing resilience and a rapid recovery from the earlier dip.
The love story between Karina and Lee Jae-wook has captured the hearts of fans and left an indelible mark on the financial landscape of SM Entertainment, highlighting the delicate balance between personal lives and corporate interests in the entertainment world.
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