The controversy surrounding former BIGBANG member Seungri and other idols has had a major monetary effect on the entertainment industry as a whole.
According to reports, the “Seungri-gate” effect has reportedly cost the market capitalization of several major entertainment companies, including YG Entertainment and FNC Entertainment, nearly $538 million USD so far.
Between February 26 and March 18 the companies’ combined market capitalization dropped by approximately $520 million USD. The drop also hurt investors when the National Pension Service reportedly lost $29.1 million during that same 3 week period.
The scandal, which involves several idols, has stirred up the public’s distrust and resentment toward both companies and idols. It stands to deal a significant, long-lasting blow to the K-Pop market unless major changes are made.
In light of the scandal, many are calling for a re-establishment of the K-Pop industry. Critics say that agencies have produced idols who excel at singing and dancing, but they have not done enough to develop their stars’ character, personality, or morals.