K-pop stock falls 7% amid questions over Blackpink member's contract renewal

Shares of K-pop absorption bureau YG Entertainment dropped astir 7% aft reports emerged that the declaration renewal for a subordinate of miss radical Blackpink is successful doubt.

YG shares traded astatine 73,900 Korean won astatine 2.41pm KST. At this level, the banal is astatine its lowest since May 11, erstwhile it closed astatine 66,700 Korean won apiece.

According to an exclusive report by South Korean media outlet Munhwa Ilbo, Thailand-born subordinate Lisa has "not been capable to find an agreement" regarding a declaration hold with YG Entertainment.

South Korean media outlet Newsen besides reported that YG Entertainment responded to queries by saying that declaration renewal discussions were underway, but Munhwa Ilbo reported that "it is known that the quality betwixt the 2 sides is rather large."

Blackpink — made up of members Jisoo, Jennie and Rosé, successful summation to Lisa — has been 1 of YG Entertainment's astir palmy K-pop groups.

The 4 subordinate radical debuted with YG successful August 2016. As K-pop groups typically motion seven-year contracts, Blackpink's declaration is expected to expire successful August.

Citing an "industry insider," Munhwa Ilbo besides reported that "YG's declaration renewal process with the remaining 3 members of Blackpink is proceeding comparatively smoothly." 

The radical was the archetypal Asian enactment and K-pop miss radical to header the Coachella festival successful the U.S., and the first K-pop set to header a large festival successful the U.K. astatine the BST Hyde Park festival.

Blackpink besides holds the Guinness World Record for most-viewed euphony transmission connected YouTube for a group, beating retired U.S. popular set Maroon 5 successful April.

— CNBC's Chery Kang contributed to this report.