JYP surpasses YG and becomes No.2 k-pop agency
A remarkable change is now occurring in the world of k-pop.
JYP Entertainment has recently surpassed YG Entertainment and become No.2 k-pop agency with a market cap of about 515 million USD. YG's market cap is about 505 million USD. SM Entertainment has a market cap of nearly 800 million USD, maintaining No.1 position in the k-pop world.
Of course, change is happening all the time for stock prices, and the k-pop agencies' market cap will change again and again according to their stock prices, but what's notable is that it's first time for JYP to surpass YG in terms of market capitalization since 2011. Both k-pop agencies were listed on the exchange in the year.
When PSY achieved huge success around the world and BIGBANG was on a roll, YG once surpassed SM in terms of market capitalization. At that time, Yang Hyun Suk began to expand the business, expecting YG's bright future. However, things didn't go as he had expected. In 2017, YG's stock price plummeted in the wake of the Chinese government’s response to the US anti-missile system deployment. And even though the tension between Korea and China has eased off, YG's stock price didn't turn around. Many investors are still not sure about the future of YG, whose representative artist BIGBANG will join the army soon. WINNER and iKON are doing good, but it's true they couldn't become as influential and popular as BIGBANG yet.
On the other hand, JYP's stock price has tripled over the last year, and as I said before, Park Jin Young could enjoy significant rises in his company stock value. Analysts say the rise in JYP's stock price is thanks to TWICE's big success in Korea and Japan. You know, the girl group has been on a roll since its debut, and the team is loved by so many people in Japan. A success in Japan is very important for k-pop agencies because the country has world's second largest music market. The fact that TWICE is enjoying success in the Japanese music market means the girl group and JYP can make lots of money in the country. And of course, the rise in sales is directly linked to the rise in stock price and market capitalization.