SM Entertainment Stock Falls 6% in January Amid Jungkook-Winter Dating Rumors

SM Entertainment (041510.KQ) shares have been showing weakness as dating rumors emerged between BTS member Jungkook and aespa's Winter. SM Entertainment's stock previously declined when aespa's Karina confirmed her relationship with actor Lee Jae-wook.

According to the Korea Exchange on January 10, SM Entertainment shares closed at 101,600 won the previous day, down 400 won (0.39%). The stock fell despite the KOSDAQ index rising 3.57 points (0.38%) to close at 931.36.

SM Entertainment's stock has continued to show weakness since the beginning of this month. The stock closed at 108,100 won at the end of last month but finished at 101,600 won the previous day, representing a 6.01% decline so far in January. The stock has fallen on all but one of the six trading days, except for the 5th. During the same period, the KOSDAQ index rose 2.05% from 912.67 points to 931.35 points.

The stock decline is attributed to the dating rumors between Winter and Jungkook. The rumors spread online, with evidence including matching dog face tattoos on their forearms, similar in-ear monitor designs, and what appear to be couple items such as bracelets, hats, and nail art. It was also noted that Jungkook attended an aespa concert during his military leave in March, and that the two have matching Instagram usernames.

However, BigHit Music Entertainment and SM Entertainment, the agencies representing Jungkook and Winter respectively, have not issued any statement regarding the relationship. Sources say the companies are taking a conservative approach after experiencing fallout from aespa Karina's case. When Karina confirmed her relationship with actor Lee Jae-wook last year, SM Entertainment's stock showed extreme volatility before closing down 3.47%.

Investors are reacting negatively to the dating rumors. "Fans who like Winter may stop buying merchandise, and dating rumors don't seem good for the stock price," one investor said. Another investor said, "The stock fell during the Karina dating rumors, so I think the stock will remain weak for a while."