K-pop stocks dip briefly on report of antitrust probe on production

Shares of K-pop agencies dipped concisely connected Wednesday aft a reported probe by South Korea's antitrust watchdog.

South Korea's Fair Trade Commission launched an probe into allegations of powerfulness maltreatment successful the ample amusement agencies, South Korean section media Yonhap News reported Wednesday, citing unnamed manufacture sources.

The study said authorities agencies sent "examiners" to the offices of Hybe, SM Entertainment, YG Entertainment, according to a CNBC translation of the article.

Yonhap reported that these companies person allegedly violated the nation's "subcontracting law," including utilizing verbal contracts alternatively of written documents and delaying outgo erstwhile producing albums and merchandise.

Hybe, the bureau down BTS, saw its shares autumn arsenic overmuch arsenic 3%, portion SM Entertainment fell arsenic debased arsenic 2.19%. Both stocks pared immoderate of their losses by luncheon interruption connected Wednesday.

YG Entertainment, which manages miss radical Blackpink, saw a smaller nonaccomplishment of up to 1.49%, but reversed people to commercialized 2.23% higher.

When contacted by CNBC, South Korea's FTC said they could not corroborate oregon contradict the Yonhap report. YG Entertainment, SM Entertainment, and Hybe besides did not respond to requests seeking comments to the Yonhap report.

— CNBC's Kimberly Kao contributed to this report.