the stock of SM.entertainment as of Sept.30th

The announcement of Jessica has been forced out Girl’s Generation has become a shock to the Korea entertainment industry even the worldwide entertainment industry. The news became the top one on NAVER’ search list and the stock of SM. Entertainment(the artist agency of Girl’s Generation) plummeted about 4% just after the unofficial post on Weibo that written by Jessica came out.

How could one person possess such huge influence? As a fan of Girl’s Generation, I would like to say that it’s undeniable that Jessica is an outstanding singer and actress. But from an objective perspective, this is a more complex question.

As we all know, Korea is a nation relies its economy on its entertainment industry to a great extent. The Korean wave was regarded as the main export of Korea and has already occupied a large proportion of the Asian entertainment market. Due to the similar cultural background, the reputation of Korean entertainment in Asia is approaching the status of Hollywood in Western countries. As the top 3 artist agencies, SM. Entertainment is always dedicated to how to make more money and therefore ignore the feeling of their artists gradually. SM. Entertainment’s management and operation didn’t keep step with its rising status in this industry.

Since the beginning of 2014, many rumors and gossips of SM. were reported. This also results from the firm’s interior reform. The transfer of the highest right led to a fierce conflict inside the company. The artists that were fostered by the former executives are facing an unknown fate.

Korean entertainment industry is very competitive, in terms of both the company and actor or actress. Hence, in order to stand out, people who want to become an actor or actress must exert huge efforts and are always under firm control of the company, especially in SM. In other words, the high pressure of the whole industry has turned this company into an “artist” making machine instead of a place where people can realize their dream.

Thus, it is rather hard or even impossible for actors or actresses to struggle for their rights which are not obviously listed on the contract. As one of the actors that want to fight for their own rights, Jessica was treated by SM. similar as others. However, the large amount of same stuff that happened within half a year in SM. finally led to an eruption. The situation has caused fans’ discontent and conduced shareholders’ distrust and also decreased their confidence for the future development of the company. The unhealthy relationship between the employee and the company turned out to be a drastic drop in the stock.

Citation

“BREAKING: Girls’ Generation Jessica Posts She Is Being Kicked out of the Group on Weibo… Account Hacked?” Koreaboo. Koreaboo, n.d. Web. 01 Oct. 2014. .

“S.M. ENTERTAINMENT Co.,Ltd.: KOSDAQ:041510 Quotes & News – Google Finance.” S.M. ENTERTAINMENT Co.,Ltd.: KOSDAQ:041510 Quotes & News – Google Finance. N.p., 29 Sept. 2014. Web. 01 Oct. 2014. .