Global K-pop wave to drive growth in South Korean entertainment firms

A scene from Netflix's animated film "KPop Demon Hunters." Courtesy of Netflix
SEOUL, September 16 (AJP) - The runaway success of Netflix's animated feature "KPop Demon Hunters" is resonating beyond the screen, fueling financial markets, especially South Korea's four major entertainment companies.

Over the past year, shares of the country's "big four" entertainment firms, HYBE, SM Entertainment, JYP Entertainment, and YG Entertainment, have rallied sharply. Despite the departure of Teddy, the longtime YG producer behind "KPop Demon Hunters," YG Entertainment climbed from 32,300 won in September 2024 to 97,600 won in September 2025, a gain of 202 percent, the sharpest increase among peers. SM Entertainment rose from 58,100 won to 141,600 won (+144 percent), HYBE advanced from 164,000 won to 286,500 won (+75 percent), and JYP Entertainment increased from 45,200 won to 76,100 won (+68 percent).

The rally has also been evident in the shorter term. Over the past two months, since July 15, YG rose from 86,800 won to 97,600 won (+12.4 percent), while SM edged up from 133,700 won to 141,600 won (+5.9 percent), HYBE climbed from 271,000 won to 286,500 won (+5.7 percent), and JYP inched up from 75,800 won to 76,100 won (+0.4 percent).

Meritz Securities media analyst Kim Min-young said, "'KPop Demon Hunters' is more than a box-office hit; it is acting as a vehicle for the wider spread of Korean culture. Still, it is too early to say the effect of the film applies to South Korean entertainment, but we can see that the genre of K-pop is becoming more familiar to more people. This means we can expect a boost for the Korean cultural industry along with entertainment."

Assets under management for the ACE Kpop Focus ETF also surpassed 200 billion won ($150 million), closing at 204.2 billion won as of Aug. 13, according to Korea Investment Management. The figure marks a nearly 6.8-fold increase from 30.2 billion won at the end of last year, achieved in just eight months. Launched in January 2024, the fund is a highly concentrated product with about 95 percent of its holdings in the country's leading four K-pop agencies. 

The contrast between the ETF and individual stocks highlights the dynamics of the market. While the ACE Kpop Focus ETF has delivered a 57.4 percent year-to-date gain, already outpacing the KOSPI (34.4 percent) and Nasdaq 100 (13.5 percent), the big four entertainment firms have shown even stronger one-year performances, led by YG’s 202 percent rally and SM’s 144 percent surge.

An official at Korea Investment Management said, “The success of 'KPop Demon Hunters' will boost the big four entertainment companies as they expand into global markets. There were actually no purchases from our foreign investors before, but there have been some deals recently.”

Nam Yong-soo, head of ETF management at Korea Investment Management, added, “The global K-pop fandom continues to expand steadily, with its base stretching beyond Asia to the Americas, Europe, and emerging markets, further strengthening its growth potential. Major events such as BLACKPINK’s upcoming full-group album and world tour this year, and BTS’s scheduled return to group activities next year, are expected to boost corporate earnings momentum and further enhance the value of K-pop intellectual property.”

Looking ahead, research reports suggest there is still room to climb. Even after this year’s steep rally, investors see the K-pop industry’s growth story as far from over.
Kim Hee-su Reporter khs@ajupress.com