JYP Entertainment to purchase and remodel a large building for its new company headquarters
News

JYP Entertainment to purchase and remodel a large building for its new company headquarters

It has been reported that JYP Entertainment will be purchasing and remodeling a large building in Seoul’s Olympic Park to be used as their new company headquarters. This has gained attention as to whether they will be using their treasury stock worth 20 Billion KRW $17.8 million (approx.) into this building.

They have decided to leave their current building that has been used since 2002. Currently, they are using five different buildings for its operations with the main building in Cheongdam-dong but have now decided to move to one large building that can house everything and everyone within the company under one roof. With the location close to the Lotte Tower, Han River, and many other attractions, it seems to be a smart and calculated move in order to expand to a wider audience across the world. 

It has been estimated that the total investment for this building could lie anywhere in the tens of billions KRW. 

To help fund the major investment, JYP recently sold 786,607 shares of Genie Music (formerly KT music) to raise 5.3 Billion KRW ($4.7 million). According to an insider from JYP Entertainment, they are planning to partially fund the building with the company’s cash reserves. Additionally, analysts have stated that it could be possible that JYP can purchase and renovate the building without a loan as at the end of Q1 2017, JYP had cash holdings of 19.7 Billion KRW ($17.6 million). 

With the consideration of TWICE expanding and promoting in Japan soon, expenses are expected to increase in which it is possible for the company to sell its stock to fund the building further. However, with JYP’s stable earning increase of 28.5% YoY in Q1 2017 contrast to Q1 2016 and with the increase of TWICE’s popularity, it is not far-fetched to think they will not sell their treasury stock in any sudden/rash manner. 

After their debut back in 2015, TWICE has swept the charts with ‘TT’, ‘KNOCK KNOCK’, and ‘SIGNAL’. Analysts proposed that with TWICE having three Japanese members, there is a very high possibility of succeeding over in Japan much like Girl’s Generation did. 

Shares of JYP stock closed at 7,470 KRW ($6.67) per share on May 26, the stock has increased over 54% compared to the beginning of the year when it was trading at 4,840 KRW ($4.32) per share.

Get K-POP Merch @ allkpop The Shop