A securities analyst anticipates that the members of the globally popular K-pop group, BLACKPINK, will likely extend their contracts with YG Entertainment.
NH Investment & Securities' researcher Lee Hwa-jeong, who works with one of Korea's premier securities firms, stated that the chances of Lisa, one of BLACKPINK's members, parting ways with YG Entertainment are minimal, according to a report from the Herald Economy.
"YG Entertainment quickly clarified speculations about Lisa's potential contract renewal with BLACKPINK. The timing of the explanation was more telling than its content," Lee noted.
Lee drew attention to the swiftness of YG Entertainment's response to rumors regarding Lisa's contract extension, indicating the agency's keen interest in continuing a smooth relationship with BLACKPINK. The agency has typically been slow to react or remained silent about issues concerning other artists.
Drawing parallels with YG Entertainment's previous contract renewals with BIGBANG in 2011 and 2015, Lee observed that BIGBANG's performances noticeably increased around the time of their contract extensions.
"The official contract with BLACKPINK ends on August 7 this year. The group's Los Angeles performance is scheduled for August 26, post-contract expiry, and further performances are likely in September. This suggests active negotiations are ongoing," Lee shared.
Lee also referenced the recent addition of a Vietnam stop in BLACKPINK's "Born Pink" World Tour as a positive sign of an impending contract renewal.
Lee concluded by stating, "Considering the current momentum of BLACKPINK's activities, NH Investment & Securities finds little reason for their contract renewal with YG Entertainment to fail."
Speculations around the potential uncertainty of Lisa's contract renewal sent YG Entertainment's stock price spiralling down from 74,300 KRW to 72,000 won on Wednesday, a decline of 5.83%. The Korea Exchange noted a weakened investor sentiment on Thursday.
These speculations originated from an anonymous Chinese agency, stating in a Munhwa Ilbo report, "Negotiations on scheduling between YG and Lisa are ongoing. However, it is challenging to plan beyond August due to uncertainties about Lisa's contract renewal."
YG Entertainment promptly quashed the rumors on Wednesday, stating, "The current situation has more to do with tour and personal schedules, and it does not reflect the contract status."
