Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
JYP overtakes SM in market cap
TWICE members perform at the KSTAR 2018 Korea Music Festival at the Gocheok Sky Dome in Seoul, Aug. 1. JYP Entertainment overtook SM Entertainment in market capitalization this week, thanks to the popularity of the K-pop girl band belonging to JYP. / Korea Times file
By Park Jae-hyuk
By Park Jae-hyuk
JYP Entertainment has taken the lead in the nation's entertainment industry, since it overtook SM Entertainment in market capitalization this week, thanks to the success of TWICE, GOT7 and other singers signed to the company, analysts said Friday.
It is the first time that JYP has surpassed SM in market cap since its listing on the Kosdaq market in 2001.
The entertainment company established by singer-songwriter Park Jin-young has been above the long-standing business bellwether in terms of market cap since Wednesday.
JYP's market cap remained higher than that of SM on Friday as well, because JYP's stock on the day closed at 32,250 won ($28.98), up 2.06 percent from the previous session. The market cap of JYP was 1.12 trillion won that day, while that of SM, established by producer Lee Soo-man, was 1.10 trillion won.
According to analysts, JYP's stock price has skyrocketed over the past 18 months, considering its stock closed at 4,605 won on Feb. 6, 2017.
Back then, its market cap was 159.4 billion won. However, JYP overtook YG Entertainment in market cap in January, and its market cap surpassed 1 trillion won on Aug. 22.
Analysts attributed its success to the popularity of the company's next-generational K-pop idol groups, such as TWICE, GOT7 and Stray Kids, all of whom made their debuts within the past four years.
The analysts also cited enlistments of YG's BIGBANG members and SM's failure to come up with new stars.
“Since TWICE's debut and success in Japan, JYP's stock price has been up five times higher than earlier last year,” Shinhan Investment analyst Han Kyung-rae said. “Its stock price is expected to continue to increase because of the success of TWICE and GOT7, as well as the debut of new bands.”
Hana Financial Investment Lee Ki-hoon expects JYP's market cap will reach 2 trillion won in 2020, given the company plans to come up with two boy bands in China and a girl band in Japan next year.
“We recently experienced many changes after moving our office,” JYP Entertainment CEO Jung Wook was quoted as saying. “With the sense of duty to lead the Korean wave fever, we will continue brave new challenges.”
In the second quarter, the company posted 31.6 billion won in sales and 9.1 billion won in operating profit, both of which were the highest in the company's 21 years of history.