In the wake of news that Luhan formally filed suit Friday morning to terminate his contract from S.M. Entertainment, the company’s stock price plummeted, maxing out the exchange’s 15% price-change limit, and effectively ended trading in the company’s shares for the day by 2:00 pm, an hour ahead of the bourse’s closing time.
S.M. Entertainment’s market capitalization dipped to 644 billion won, below that of YG Entertainment’s 738 billion, officially making YG the largest, most financially valuable entertainment company in South Korea.
In terms of market capitalization, YG currently ranks 25th in size on the KOSDAQ, while SM is ranked 32nd.
Next earnings call for S.M. is on November 27, 2014.