JYP Stock Plummets from 90,000 Won Range to 40,000 Won Range Following Park Jin-young’s Investment Recommendation; Loss Exceeds 100 Billion Won

Since November 2023, when Park Jin-young, CCO of JYP Entertainment, actively encouraged investors to purchase the company’s shares, the stock price has dropped by more than half. The value of Park Jin-young’s personal stake has declined by over 100 billion won. Despite ongoing weakness across the entertainment industry, securities firms continue to maintain a buy rating for JYP.

In November 2023, Park Jin-young appeared on the YouTube channel Syukaworld and strongly recommended buying the company’s shares. He emphasized the necessity of long-term investment by saying, “If I really had extra money, I would definitely buy our company’s shares,” adding advice to invest with a view toward three or five years ahead rather than just one year. At that time, JYP stock was trading in the 90,000 won range.

Park Jin-young’s confidence in investing extended beyond words. He personally invested 500 million won to purchase approximately 62,000 shares, raising his stake percentage from 15.22% to 15.37%. The stock price saw a temporary rebound shortly after his remarks as Stray Kids reached the top of the U.S. Billboard chart.

However, subsequent weakness in the overall entertainment industry caused JYP’s stock price to continue falling. Currently, JYP stock is trading at 44,400 won, which is roughly half of the 90,000 won range during Park Jin-young’s investment recommendation period. As a result, the estimated loss on Park Jin-young’s holdings has exceeded 100 billion won.

What are the evaluations from securities firms in this situation? SK Securities has lowered its target price for JYP from 92,000 won to 75,000 won.