SEOUL: South Korean entertainment stocks rose Friday (April 18) after the nation’s presidential front-runner pledged greater support for cultural exports and government incentives for the industry.
K-culture shares are getting fresh attention on the election as well as their relative insulation from tariff concerns. The sector got a boost a few years ago as the Netflix Inc. blockbuster Squid Game sent investors looking for the next big Korean hit, though that charm had started to wear off.
Lee Jae-myung, who is the favourite to win the June 3 presidential vote, will "sharply increase” the budget for the culture and entertainment industries if elected, he said in a Facebook post Friday. The former head of the opposition party also promised greater tax benefits for the industry.
Shares of KidariStudio Inc., which produces online comics known as webtoons, jumped as much as 15 per cent in Seoul before erasing the gain. K-pop agency YG Entertainment Inc. climbed as much as five per cent, and drama producer Studio Dragon Corp. gained 4.4 per cent.
"We will be reborn as a clear cultural powerhouse,” putting South Korea among the major global nations in terms of soft power, Lee said, targeting 50 trillion won (US$35 billion) in cultural exports by 2030. South Korea’s cultural exports totaled US$14.2 billion in 2023.
Lee has positioned webtoons as a key pillar in the nation’s entertainment industry, along with K-food, K-beauty, K-pop and K-drama. He is running in the election following the impeachment of former leader Yoon Suk Yeol over a botched martial law attempt.
K-entertainment stocks have also been attracting interest again as investors see such fields as more immune from the direct impact of US tariffs than more physical products such as semiconductors and autos.
KidariStudio is up more than 20 per cent this month while fellow webtoon firm Mr Blue Corp. has surged more than 50 per cent. Drama producer ContentreeJoongAng Corp. and K-pop agency SM Entertainment Co. are up more than five per cent each in April. - Bloomberg
