News of G-Dragon‘s (Kwon Ji Yong) suspected drug use has left a few K-pop stocks in a bearish state as both SM Entertainment (KOSDAQ: 041510) and Hybe Co Ltd (KRX: 352820) took a tumble after the news was released.
Part of the ongoing investigation into Lee Sun-kyun, G-Dragon was booked on October 25 and under investigation for allegedly breaching South Korea’s Narcotics Control Act. The ongoing investigation involves eight people who allegedly consumed illicit substances, and has led to Lee Sun-kyun dropping out of the upcoming drama No Way Out.
G-Dragon has since released an official statement addressing the situation:
This is Kwon Ji Yong [G-Dragon’s given name]. First, there is no truth to the [claim] that I have taken drugs. Additionally, I have no relation to the news reports about the violation of the Act on the Control of Narcotics, Etc. that was recently revealed in the media. However, because I know many people are concerned, I will actively cooperate with police investigations and will participate even more diligently.
Both SM Entertainment and Hybe Co Ltd are seeing a slight recovery from the negative news with SM Entertainment experiencing a five-day result of -8.15% in stock price while Hybe Co Ltd is sitting at -3.79% from the past five days.
(Image: Han Myung-Gu/WireImage)
