K-Pop stocks tank after dating news from aespa's Karina and actor Lee Jae-wook

K-pop management powerhouse SM Entertainment's stock fell immediately after the release of Aespa's Karina dating actor Lee Jae-wook, in March 2024. This isn't the first time K-pop stocks have dropped due to dating news, but the fall of the company's value is remarkable.

Image: KBS2, SM Entertainment

SM Entertainment is a K-pop management company that is also known as one of K-pop’s most reputable and oldest management companies.

Image: SM Entertainment

Some of the most well-known idols in the K-pop industry have been produced by SM Entertainment themselves, which includes the ‘Queen of K-pop’ BoA, boy bands SHINee and EXO, and the girl groups Girls Generation, aespa, and Red Velvet, among many others.

Image: SM Entertainment

On February 27, Dispatch released news that aespa’s Karina and South Korean actor Lee Jae-wook are dating.

Image: Netflix, SM Entertainment

The news was then later confirmed by both celebrities’ agencies, and Karina and Lee Jae-wook had gotten to know each other from a fashion show in Milan, Koreaboo reports.

Image: jxxvvxxk / Instagram , SM Entertainment

Some fans were so outraged by the dating news that they rented protest trucks and put hateful messages on them to park outside of SM Entertainment, Karina's agency, according to a separate Koreaboo report.

Image: SM Entertainment

It was not just fans, but also SM Entertainment stockholders who were also affected by the reports that Karina was dating Lee Jae-wook.

Image: SM Entertainment

Share prices fell nearly 5% the day following the dating revelation, reports Korea JoongAng Daily.

Image: SM Entertainment

However, Chosun gives a different angle as to why shares might have dipped. Chosun reports that the share prices might have actually dipped due to poor album sales, rather than outrage over the dating news.

Image: SM Entertainment

However, the same Chosun report notes that analysts agree that the dating news has indeed worsened and added to the “decline in share price”.

Image: SM Entertainment

Given the gravity of the situation and the widespread anger of aespa fans, Karina was reported by Allkpop to have posted a handwritten apology for the news on her Instagram, apologising for disappointing her fans by dating Lee Jae-wook.

Image: katarinabluu / Instagram

Karina’s apology on Instagram has won certain Korean netizens over, as many have responded to the apology, criticising other fellow fans in the aespa fandom who have reacted very negatively to the dating news.

Image: katarinabluu / Instagram

It seems that the bulk of the negative attention regarding the dating news has fallen on Karina, as there has been a lack of response from Lee Jae-wook’s side regarding the fallout from the official confirmation of his relationship with Karina.

Image: jxxvvxxk / Instagram

Rather than hate, Lee Jae-wook’s official Instagram has instead been full of supportive comments for the news on his relationship with Karina.

Image: jxxvvxxk / Instagram

However, some international fans have voiced their concerns regarding the disparity in treatment between Lee Jae-wook and Karina for the dating news, with some calling for the actor to step up with public efforts to support his girlfriend.

Image: jxxvvxxk / Instagram

According to Korea JoongAng Daily, the situation involving Lee Jae-wook and Karina is comparable to the alleged dating news involving Jennie of BLACKPINK and V of BTS back in 2022.

Image: jennierubyjane, thv / Instagram

Korea JoongAng Daily reported that on the day that Dispatch reported that the two stars were dating, YG Entertainment, which manages BLACKPINK, saw a 2% drop in share price. Whereas HYBE Records, which manages BTS, saw no change in share price but similarly tanked the day after.

Image: jennierubyjane, thv / Instagram