The KOSPI index has been setting a new record high day after day, but K-content-related stocks have been thoroughly sidelined and are posting weak returns. Even as global K-pop star BTS signaled a comeback with a concert next month at Gwanghwamun Square in Seoul, leading K-content shares remain sluggish.
Experts said recent investment funds have concentrated in some large-cap stocks, including Samsung Electronics and SK hynix, leaving K-content-related stocks out of favor. They also noted that the resumption of activities by affiliated artists has become a constant already priced into the market, rather than strongly driving share prices as in the past, reducing investment appeal.
According to the Korea Exchange (KRX) on the 24th, the KRX K-content index rose 6.78% this year (Jan. 2–Feb. 23). That contrasts with the KOSPI index, which has surged nearly 40% over the same period, hitting fresh highs day after day. With K-content thoroughly left out of the KOSPI rally, a mood of spreading "FOMO" syndrome—meaning a sense of relative deprivation—has taken hold among K-content investors.
Only the KRX K-content and KRX Micro-cap TMI indexes failed to reach a 10% gain. The K-content index includes all four major entertainment companies: HYBE, JYP Entertainment, SM Entertainment, and YG Entertainment.
The KOSDAQ is up 24.48% (226.52 points) so far this year through today. The recreation and leisure sector on the KOSDAQ, which includes the three companies excluding HYBE, fell 1.60% over the same period, the only decline among KOSDAQ indexes.
The leading stocks are either down or flat. JYP Entertainment fell 8.64% (6,700 won) from 77,500 won at the close on the 2nd of last month to 70,800 won today, and SM Entertainment fell 12.54% (16,600 won) from 132,400 won to 114,700 won. YG Entertainment barely broke above the 70,000-won level at the start of the year and climbed to 76,500 won on the 11th before the holiday, but fell back to 73,100 won today. SM Entertainment and JYP Entertainment rank first and second by market capitalization among KRX K-content index constituents.
Fund inflows vary by stock. So-called big-hand foreign investors made a net purchase of 462.1 billion won in HYBE this year (Jan. 2–Feb. 20), but are net sellers of SM Entertainment, JYP Entertainment, and YG Entertainment.
Lee Gi-hoon, a researcher at Hana Securities, said, "The entertainment industry's results and outlook are both solid, but as leading stocks such as Samsung Electronics and SK hynix have risen sharply, funds have flocked there, leaving entertainment stocks with relatively weak gains."
The researcher said, "As seen in the NewJeans incident, if business risks arise, entertainment company shares face the danger of a steep drop," adding, "It is difficult to expect share price gains on the simple anticipation of singers' comebacks alone."
On BTS's comeback, some caution that concrete "numbers" need to be confirmed. Ji In-hae, a researcher at Shinhan Investment & Securities, said, "BTS's Gwanghwamun comeback stage is on an unprecedented scale, enough to be broadcast simultaneously worldwide on Netflix," while adding, "The ticket price, which will be confirmed after ticketing is completed, will drive an upward revision of HYBE's results."