YG Entertainment, the South Korean entertainment company, dropped around 3% on Friday after a member of Blackpink, one of its biggest K-pop groups, rejected two contract renewal offers.
Lisa, the Thailand-born singer, reportedly turned down a contract offer worth US$37.6 million, just as the group was finishing what had been dubbed the largest world tour by a K-pop girl group ever.
Experiencing its largest drop in a single day since September 2022, YG fell as much as 9% following the reports.
Contract negotiations between the singer and YG had stalled in July and while the company said renewal talks were still underway, local reports in South Korea said “it is known that the difference between the two sides is quite large”.
Touring over 41 cities to more than 1.5 million fans since October 2022, Blackpink is considered one of YG’s most successful K-pop groups after debuting in 2016, but with artists typically signing seven-year contracts and no renewals being announced for the group, YG could potentially lose the group to a rival firm.