South Korean music company JYP Entertainment, home to popular K-pop acts including TWICE and GOT7, surpassed all other local labels in market capitalization this week. It is the first time JYP’s market capitalization has become the highest among K-pop’s Big 3 music companies — JYP, SM Entertainment and YG Entertainment.
On Thursday (Aug. 30), JYP closed on the Korean Securities Dealers Automated Quotations (KOSDAQ) stock exchange at 31,300 KRW ($28.03), bringing the company’s market capitalization to 1.09 trillion KRW ($976.3 million). Former leader SM Entertainment’s market capitalization was 1.08 trillion won ($967.3 million) at closing.
JYP Entertainment was founded in 1997 by J.Y. Park and listed on the KOSDAQ in 2001. It has produced many of South Korea’s most prominent K-pop acts, including Wonder Girls, Rain, 2PM and g.o.d. The past year has been one of the company’s most successful, with TWICE dominating Asian markets and GOT7 recently debuting on the Billboard Boxscore Hot Tours list after their July show at The Forum in California grossed $1.3 million. In January, JYP overtook YG for the second place spot in the Big 3.
JYP’s rise among the Big 3 comes following changes at the company regarding its business structure and approach to international markets. Formerly centralized and dominated by Park, the company in recent years has decentralized its creative and business processes to help propel its recent success, reports Yonhap. A shifting focus towards international markets that has resulted in Chinese boy band Boy Story and a planned Japanese girl group has also added to JYP’s market value, as K-pop’s push into international markets often faces uncertainty due to international tension.
Park recently discussed changes at JYP during his “JYP 2.0” investment seminar. Watch it here: