SM Entertainment, a powerhouse in the K-Pop industry, witnessed a notable decline in its stock prices following the official confirmation of aespa‘s Karina and actor Lee Jae Wook‘s romantic relationship.
The announcement made on February 27 marked a significant moment for fans of both celebrities but seemed to cast a shadow over SM Entertainment’s financial performance in the stock market.
| @katarinabluu/Instagram
Karina and 25-year-old actor Lee Jae Wook acknowledged their relationship through their respective agencies. SM Entertainment stated, “The two are currently getting to know each other,” while C-JeS Studio (representing Lee Jae Wook) confirmed the relationship and requested privacy due to the actor’s ongoing filming schedule.
The news of their relationship first broke out through Dispatch which reported that the couple met in Milan as ambassadors for a luxury brand. Their initial encounter at the Prada FW fashion show on January 14 reportedly sparked their romance.
However, coinciding with this reveal, SM Entertainment’s stocks experienced a downturn.
Opening at ₩87,700 KRW (about $65.80 USD) on the announcement day, the stocks closed at ₩79,900 KRW (about $60.00 USD), marking a decrease of ₩3,000 KRW (about $2.25 USD) or 3.7 percent.
This decline occurred despite the company’s recent decision on February 7 to pay dividends worth approximately ₩28.1 billion KRW (about $21.1 million USD) and retired 241,379 of its shares — a move aimed at enhancing shareholder value and a first in the company’s history since its foundation in 1995.
While the direct correlation between the dating news and the stock market response remains speculative, Korean media outlets have highlighted the timing of the stock drop closely following SM Entertainment’s official confirmation of the relationship.
Karina — who debuted with aespa in 2020 — and Lee Jae Wook — who has been rising in the acting scene since his debut in 2018 — are both prominent figures in their respective fields. Their relationship has certainly captivated the public’s attention, but the ensuing effect on SM Entertainment’s stock market performance doesn’t seem positive.
