Wish Good EMG will be able to come out okay
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With the group activities of idol group Shinhwa coming to a temporary halt, Good EMG are finding themselves in a crisis as they face imminent delisting from KOSDAQ (Korean Securities Dealers Automated Quotations i.e. the Korean stock exchange). After a review by the Financial Supervisory Commission on 22 Sept, they have made a decision to delist Good EMG. The commission reported that the company had only a turnover of 6 million KRW in the first half of the year and that its main business operation has been halted.
Good EMG is the result of a merger of Good Entertainment – known for being Shinhwa’s management company – and another KOSDAQ-listed company Eastern Technology in 2006. That year, the company’s turnover came up to 5.6 billion KRW, which fell to 3.9 billion KRW in 2008, and further dropped to 1.2 billion KRW for the last financial year. In the first half of the current financial year, the turnover for Q1 was 4.5 million KRW and 2.5 million KRW in the 2nd quarter. There has been no revenue from its main entertainment business.
Their key artist Shinhwa, with Eric and Kim Dongwan enlisted for military service, inevitably has had to put group activities on hold. Though remaining members Junjin, Andy, Shin Hyesung and Lee Minwoo are still active as solo artists, as solo acts they are not individually contractually bound to Good EMG and thus their individual earnings do not contribute to Good EMG’s turnover.
Kim Jung Young of Omnibus Investment, an affiliate of Good EMG, has expressed that they have already made plans to invest in a coffee chain and the construction of a car racing track, and that they will be appealing the decision in order to remain listed.
(specifics of Good’s financial investments omitted)
Credits: Hankyung + Absolut Shinhwa
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