YG Entertainment stocks are plummeting.

After the shocking controversy around club 'Burning Sun' first broke, the image of the agency as well as the YG stock price plummeted. Now the controversy has grown out of control with the latest prostitution allegations based on the alleged filthy kakaotalk conversations released publicly.  More news has also surfaced that Seungri threw a birthday party overseas to entertain potential investors where "adult entertainment" women from his establishment as well as drug use of "happy balloon" were rampant.  Seungri claimed innocence and was investigated for 8 hours and 30 minutes on the 27th. 

Even crazier was the disposal truck that was spotted at YG Entertainment building in Seoul where two dozens of documents in boxes and trunks with computer equipment were seen loaded onto the vehicles.  YG explained that this was just regular shredding work but many are suspecting that evidence related to Seungri was destroyed because the disposal trucks arrived in the early morning before regular business hours. It is a shocking scandal that has plagued YG and from a member who's a representative from the group that made the current YG. 

YG has reigned as one of the "big 3" and it's clear that Big Bang was the 'cash cow' that accounted for the majority of YG's sales.  The fall of Big Bang means the fall of YG. In fact, YG stock has taken a direct hit due to the ongoing controversies.  On the 28th, YG finished trading at 41,850 won, down 6.58% from the previous day. On the 25th, YG's market cap was 863.8 billion won but it has fallen to 764.7 billion won on the 28th.  A total of 100 billion won has evaporated just in the past few days. It is a terrible collapse of YG that was once top in the industry alongside SM and exceeding SM with regards to market cap alone. YG who was already in a crisis because he did not have 'post big bang' plans and was pushed far behind hsi competitors widened the gap even more with the "Seungri scandal." 

As of February 28, SM's market cap is at 1.77 trillion won, JYP is at 300 billion won more than SM's with YG trailing behind at only 764 billion won.  The stock market clearly reflects the public's confidence in YG or lack thereof.  YG has always had prevalent issues and has been frequently referred to as a "problematic agency" but the scale of this controversy is of a different magnitude. 

The controversies have gone beyond the scope of just moral responsibility to legal responsibility.  In many ways, this can be seen as the fall of YG Entertainment from the "big 3."