K-Pop shares defy the political and economic troubles of South Korea-like and Trump’s tariff threat
In this photo taken on November 2, 2024. Music albums and related goods released published by the K-POP Group and BTS members, seventeen, Stay Kids and tomorrow X Together (TXT) are shown in the retail store in Seoul.
Anthony Wallace | AFP | Getty Images
South Korea’s economy slows down, and growth has reached multiple low low. The currency was under pressure, and the country is in political unrest. Trump’s tariff threats did not make things easier.
But there is one sector that offered to investors this year. One of the greatest cultural exports of South Korea: K-Pop.
Shares of four main K-POP companies have so far received between 20% and 33% this year, surpassing KospiReturn of 5.39% and Kosdaq’s 8.8% increase, from March 4. Hybe, Jyp and Yg also achieved new 52-week maximums this year.
Hybe, which in its stable stability stability brings supergroup BTS among artists, is the largest K-POP agency by market and part of the Blue-Chip Kosi index, while SM entertainment, JYP entertainment and YG entertainment are included in the Kosdaq small drop.
Prigs indicate a turnaround in the performance of the companies of 2024, when they are crashed as the Downbeat album sales hit profit.
One of the reasons for K-POP shares receive renovated Investor Investigators is that the sector is not facing the risk of US tariffs, and analyst Shinhan Securities Ji In-Hae wrote last month, according to the Google translation of her note to Korean.
The tariffs were a huge source of uncertainty for South Korea, and Trump’s threat to “reciprocal tariffs” became great.
The country has the highest tariff difference On a weighted average basis with the USA among Asian economies, which means that Trump should follow his threats, South Korea could be affected by huge tariffs.
By reflecting industrial prospects
Optimism around the K-POP section also has to do with the potential reinforcement that the industry needs to receive this year.
Shinhan Securities’ JI is “overweight” in the media and entertainment sector in South Korea, citing factors such as expected strong performance in the 2025 industry, as popular artists are returning and profit increases compared to the low base last year, as well as cinemas to reopen the market on the South Korean party.
Korean economic diary reported last month That China is likely to abolish the ban on events depicting Hally or Korean popular culture in the country, but in May.
The largest Asian economy has imposed a ban on South Korean content in 2017 in retaliation in the deployment of the US terminal with a high altitude defense or the Thaad rocket defense system, according to the report.
The return of popular groups in the industry and performance of major world tours by 2026 will be a “stronger investment point” for that sector, Ji said.
BTS is expected to continue the entire groups as early as June, while Blackpink announced plans for Start the world tour In the second half of the year.
While four members of Blackpink did not re-sign with the label when their individual contracts expired in 2023, Blackpinks group activities still manages YG entertainment.
SM Entertainment and JYP also made their debut new groups in 2025. The SM -A new rookie group Hearts2Hearts is the first group for girls in four years, while Jyp’s new Boy Kickflip group also made his debut in January.
Cita analysts in November said in November that they were “constructive” in the sector, expecting the total revenue of BIG Four agencies to grow by over 21% in 2025 and almost 15% in 2026.
Citi says that the return of popular groups “will make more than just launching revenue from albums and concerts – should also improve ROI in multiple companies. The Platform Fandom, for example, will increase the user traffic increase and the younger artists below [the] The same stickers can show the opening of the work at concerts of top artists. “
