On the 19th, ahead of the market close, YG PLUS jumped 15%. The rally is seen as driven by investor sentiment after news that its record distribution contract with HYBE was extended for three years.
As of 2:58 p.m. that day, YG PLUS was trading at 5,070 won on the Korea Exchange, up 695 won (15.89%) from the previous trading day.
That day, YG PLUS said in a filing that it signed a renewed contract with HYBE and its affiliates for cooperation on domestic record and digital music content distribution. The cooperation period is three years.
Earlier, HYBE (formerly Big Hit Entertainment) and beNX participated in a 70 billion won third-party paid-in capital increase and acquired 7.68% and 10.24% equity in YG PLUS, respectively, moving to collaborate on the company's record and digital music distribution and MD business. The contract period at the time was five years.
Choi Sung-joon, CEO of YG PLUS, said, "Collaboration with HYBE is developing into an important partnership in YG PLUS's music distribution business," and added, "By combining the strengths of both companies, we will continue to expand the competitiveness of K-pop content."