Expectations in the entertainment industry are rising regarding the lifting of the ban on Korean cultural content in China.
In April, singer Kim Jaejoong held a special fan meeting in Chongqing, China, and the three-member rap group Homey successfully completed a tour performance in mainland China, the first for a Korean artist in eight years. Additionally, trot singer Yoon Soo-hyun was invited to a ceremony marking the 30th anniversary of the sisterhood between Jeju Special Self-Governing Province and Hainan Province, where she met local audiences.
As a result, the economic ripple effect of the entertainment industry and the rising stock prices of major listed companies are also drawing attention. Following the serious discussion on the possibility of lifting the ban in March and April, stock prices of major entertainment companies have been on the rise. SM Entertainment recorded an increase of about 15% in stock price with the renewed interest in the China-targeted unit WayV, and JYP Entertainment also rose by about 12% amid expectations for the resumption of BOY STORY's activities. HYBE showed over a 10% increase in stock price thanks to expectations for entering the Chinese market and the global influence of BTS. The financial investment sector interprets this not as a temporary theme but as a sign of medium- to long-term performance improvement and value reassessment following the reopening of the Chinese market.
Accordingly, the domestic entertainment industry is paying attention to the recovery of demand for K-content in China and is strengthening its localization strategy. As previously mentioned, BOY STORY, a subsidiary of JYP China, and SM Entertainment's WayV are already active in the Greater China area. Additionally, last year, the multinational girl group A2O MAY, centered around Chinese members and produced by former SM general producer Lee Soo-man, recently gained a hot response by entering the No. 1 new song on the QQ Music chart and the TOP 10 main chart with their newly released track. In February this year, BLINGONE, composed entirely of members from the audition program 'Click the Star,' debuted and is currently continuing their activities through a remake of Kara's 'Mister,' pushing further into localization efforts in China.
Of course, the situation is not entirely optimistic. Just as the ban was not an official regulation, its lifting is also likely to proceed in the form of unofficial relaxation of measures. There are also forecasts that the examination by Chinese authorities could still be strict. The news in May about the planned 'Dream Concert' in China raised expectations as a signal for lifting the ban, but the lack of subsequent developments reflects the uncertainty.
The slow progress of the 'Dream Concert' is due to the unpredictable policy of the Chinese authorities. The criteria for concert reviews are not consistent. Rumors have circulated that only members with foreign nationality or dual nationality can participate, suggesting that there are difficulties in securing talent.
If the standards are not relaxed, it will not be easy to hold concerts, and the common opinion in the industry is that a cautious approach is necessary. It seems that more time is needed before the doors to the Chinese market are fully opened. Nevertheless, it is encouraging that local concert planning companies in China are knocking on the doors of domestic entertainment firms, owing to the still strong K-pop fandom in China and the easing atmosphere surrounding concert regulations.
A representative from a domestic entertainment industry said, "Perhaps due to expectations for the lifting of the ban, we have been receiving frequent offers for concerts and fan meetings in China since early this year. I believe other planning companies are experiencing similar situations," and added, "However, there are already instances of scheduled concerts being canceled or postponed, so everyone is approaching this cautiously. We hope that both countries can wisely navigate this period through cooperation."
[Photo] OSEN DB, A20 Entertainment
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