YG Entertainment can’t seem to catch a break from all the scandals. The agency didn’t even have time to breathe after Seungri’s alleged involvement in the Burning Sun scandal; now, they are dealing with yet another drug case that involved iKON’s B.I.
iKON had been in the K-pop industry since 2015. The group quickly garnered attention from fans after their debut as a seven-member group, B.I, Bobby, Jinhwan, Ju-ne, Yunhyeong, Donghyuk, and Chanwoo.
Meanwhile, YG Entertainment is known for producing strong K-pop groups, and iKON is one of them. With the legendary BIGBANG members G-Dragon, T.O.P, Taeyang, and Daesung currently completing their mandatory military service, iKON had become the main revenue source of the label.
But with B.I’s case and departure from iKON and YG Entertainment, analysts say that the company’s revenue will be greatly affected. They noted that as of last year, iKON ranked fifth among K-pop artists and number one among YG-affiliated artists.
This year, BLACKPINK will most likely take the number one spot after their worldwide success. However, iKON had always been a stable group that brought a lot of success to YG Entertainment.
However, after Yang Hyun Suk’s resignation, the stock almost recovered from the fall on the same day. According to the Korea Exchange, YG shares that saw a 5.60% drop after iKON B.I's withdrawal and rebounded 5.42% at one point in after-hours trading on Friday.
"With the resignation of CEO Yang Hyun Suk, YG can distance itself from various suspicions and controversies related to him,” Yoo Seong-man, a researcher at Hyundai Securities Co. stated.
YG Entertainment had always been a one-man team with Yang Hyun Suk deciding everything for the company, from trainees, artists, music video productions, and more. With his resignation, it is expected that the company’s operation will be destabilized for a while, especially with the series of controversies that it is facing at the moment.
“Seungri had no performances scheduled this year as he planned to enlist,” Researcher Yoo Seong-man said. “But B.I's withdrawal will greatly affect YG's major revenue sources as he was a key member of iKON. As long as the uncertainties of the tax audit remain, investors have to maintain a cautious approach until this situation is concluded."
B.I shocked the K-pop world when he announced that he would be leaving iKON and YG Entertainment last week. His decision is a result of his involvement with drugs. Although the idol admitted that he attempted to buy illegal drugs, he said he was “too scared and fearful to do it.”
