Bae Yong-joon and Ju Ji-hoon lose 8.6 billion won in stock value

The combined stock valuation of major Blitzway Entertainment shareholders Bae Yong-joon and Ju Ji-hoon fell to approximately 3.6 billion won by the end of last month. This represents an 8.6 billion won decrease from their peak valuation in March following a 70.4% drop in the company's share price.

The stock value held by major shareholders Bae Yong-joon and Ju Ji-hoon at Blitzway Entertainment has dropped significantly as the company's share price underwent a sharp correction following a surge driven by news of Bae Yong-joon's investment. The combined value of the shares held by the two actors, which reached approximately 12.2 billion won at its peak closing price in March, has fallen to approximately 3.6 billion won after about seven months, representing a total decrease in valuation of about 8.6 billion won.

According to industry sources on the 2nd, Blitzway's share price has continued a downward trend since hitting its highest closing price on March 13. During this period, Bae Yong-joon's stock valuation plummeted from approximately 7.33 billion won to 2.17 billion won as of the 30th of last month. This represents a decrease of approximately 5.16 billion won, as a significant portion of his holdings was impacted by the decline in market value. As of the 7th of last month, Bae Yong-joon holds 860,375 shares, representing an 8.63% stake.

Ju Ji-hoon was also directly hit by the falling share prices. An actor under Blitzway and a major shareholder, he holds 571,418 shares with a 5.73% stake, reflecting a stock split. His stock valuation, which was approximately 4.87 billion won on March 13, decreased to approximately 1.44 billion won as of the 30th of last month, resulting in an evaluation loss of about 3.43 billion won over the seven-month period.

Bae Yong-joon's additional purchase earlier this year served as a powerful catalyst that drove up Blitzway's stock price. On March 5 and 6, Bae invested approximately 392 million won to purchase about 420,000 additional shares. Once the scale of the investment and the purchase were made public, market attention intensified, and Blitzway recorded the upper limit price for two consecutive days on the 11th and 12th of that month. The investment moves of the famous actor and major shareholder led to expectations of rising stock prices.

However, the upward trend did not last long. After hitting its highest closing price on March 13, Blitzway's share price fell by approximately 70.4% by the end of October. This sharp correction is interpreted as a process in which the market re-evaluated whether the expectations formed during Bae Yong-joon's additional purchase would translate into actual corporate performance and business results. It should be noted that the decrease in stock valuation is a decline in book value due to stock price fluctuations and is distinct from actual losses from selling shares.

The company's performance also remains a burden. Blitzway recorded a consolidated operating loss of approximately 3.4 billion won in the first half of this year, including the performance of its subsidiaries. While the company has secured highly recognizable actors and singers, including Ju Ji-hoon, Chun Woo-hee, and Do Kyung-soo, it has become evident that possessing star-level artists does not guarantee the overall profitability of the company. The company faces the challenge of needing stable revenue generation from its management business alongside successful results from its content business.

Blitzway is expanding its reach from actor management, drama production, and the figure business into the music sector. In June, the name of its music subsidiary, CLAP, was changed to Blitzway Music. Previously, in May, the subsidiary attracted an investment of approximately 5.2 billion won from Bandai of Japan. While these moves represent an attempt to secure new growth engines through business diversification, attracting investment and expanding business do not immediately lead to improved operating profits. The contribution of new businesses to future performance will be a key variable in the company's re-evaluation.

Bae Yong-joon's recent activities were spotted at a golf course. Golfer Kim Seo-a posted a photo taken with Bae Yong-joon on her social media on September 11. While his daily life drew interest as he does not appear before the public often, he remains listed as a non-executive director at the company. As he continues to focus more on investment and management participation rather than acting, the stock price fluctuations are directly affecting his equity value.

Ju Ji-hoon is preparing to meet the public through his work. In the Disney+ series 'The Remarried Empress', which is set to be released on November 4, he will play the role of the Eastern Empire Emperor Sovieshu, working alongside Shin Min-a, Lee Jong-suk, and Lee Se-young. While continuing his activities as an actor, he must also monitor the company's growth and profitability improvement as a major shareholder.

Blitzway, which once drew market attention due to Bae Yong-joon's investment, has now entered a phase where it must be evaluated based on actual performance and business competitiveness rather than just the star power of its names. While the significant decrease in the two actors' stock valuations is a result of the falling share price, it also highlights the challenges surrounding the company's deficits and the results of its business expansion. Whether the 'Yonsama effect' can lead back to market confidence will ultimately depend on how much actual profitability Blitzway can prove.

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