INDIO, CALIFORNIA – APRIL 15: (L-R) Jisoo, Lisa, Jennie, and Rosé of BLACKPINK carry out on the Coachella Stage through the 2023 Coachella Valley Music and Arts Pageant on April 15, 2023 in Indio, California.
Frazer Harrison | Getty Photos Leisure | Getty Photos
Shares of Ok-pop businesses dipped briefly on Wednesday after a reported investigation by South Korea’s antitrust watchdog.
South Korea’s Truthful Commerce Fee launched an investigation into allegations of energy abuse within the giant leisure businesses, South Korean native media Yonhap Information reported Wednesday, citing unnamed business sources.
The report mentioned authorities businesses despatched “examiners” to the places of work of Hybe, SM Leisure, YG Leisure, in line with a CNBC translation of the article.
Yonhap reported that these firms have allegedly violated the nation’s “subcontracting regulation,” together with utilizing verbal contracts as a substitute of written paperwork and delaying fee when producing albums and merchandise.
Hybe, the company behind BTS, noticed its shares fall as a lot as 3%, whereas SM Leisure fell as little as 2.19%. Each shares pared a few of their losses by lunch break on Wednesday.
YG Leisure, which manages woman group Blackpink, noticed a smaller lack of as much as 1.49%, however reversed course to commerce 2.23% greater.
When contacted by CNBC, South Korea’s FTC mentioned they may not affirm or deny the Yonhap report. YG Leisure, SM Leisure, and Hybe additionally didn’t reply to requests looking for feedback to the Yonhap report.
— CNBC’s Kimberly Kao contributed to this report.