In this photo taken on November 22, 2024, musical albums and related goods issued by K-Pop groups and BTS members, seventeen, Stray Kids and Tomorrow X (TXT) (TXT) (TXT) are visible in the retail store in Seoul.
Anthony Wallace AFP Getty images
South Korea's economy is slowing down and the growth has reached low multiple levels. His currency was under pressure, and the country is in a political turmoil. Trump's tariff threats did not make it easier.
But there is one sector that this year offered hope to investors. One of the greatest cultural exports of South Korea: K-Pop.
The shares of four main K-Pop companies have gained 20% to 33% this year KospieProfit by 5.39% and an increase of 8.8% Kosdaq, from March 4. Hybe, Jyp and YG have also reached new 52-week Maksa this year.
Hybe, which counts the BTS SuperGroup among artists in its stable, is the largest K-Pop agency according to market capital and part of the Blue-Chip Kosci index, while SM Entertainment, Jyp Entertainment and YG Entertainment are included in the small Kosdaq capital.
The profits have a refund in the results of the 2024 companies, when they He fell when the heir album made profits.
One of the reasons why K-Pop shares receive renovated investors' interest is that the sector is not facing the risk of American tariffs, analyst Shinhan Securities, Ji In-Hae, wrote last month, according to the translation of her note in Korea.
The tariffs were a huge source of uncertainty for South Korea with Trump's threat by “mutual tariffs”, approaching large ones.
The country has the biggest tariff difference On the weighted average among the United States among the Asian economy, which means that if Trump follows its threats, South Korea can be affected by huge tariffs.
Promising industry perspectives
Optimism around the K-Pop campaign is also related to the potential growth of the industry, which the industry is to receive this year.
Ji Shinhan Securities is “overweight” in the media and entertainment sector in South Korea, citing such factors as the expected good results in the industry in 2025, when popular artists return and profits grow in comparison with a low base last year, and China re -opens their market for entertainment in South Korea.
Korea Economic Daily submitted last month The fact that China will probably raise a ban on events presenting Halleu or Korean popular culture in the country in May.
The report said that Asia's largest economy has been banned from a ban on the content of South Korea in retaliation in relation to the defense of a high -altitude area in the USA or a rocket defense system.
The return of popular groups in the industry and the results of global trips on a large scale by 2026 will be a “stronger investment point” for the sector, said JI.
BTS is expected to resume the activities of the group in June, while Blackpink announced plans Start the world concert tour In the second half of the year.
While four members of Blackpink did not sign again with the label when their individual contracts expired in 2023, Blackpink group activities They are still managed by YG Entertainment.
SM Entertainment and JYP also debuted new groups in 2025. The new debutant SM Hearts2hearts is the first group of companies from the company for four years, while the new group of JYP boys also debuted in January.
Citi analysts said in a note in November that they “become constructive” in the sector, expecting that the total revenues of four agencies will increase by more than 21% in 2025 and almost 15% in 2026.
Citi states that the return of popular groups “will not only do revenues from albums and concerts – should also increase roi in many companies. Fandomic platforms will see the increase in user movement, and younger artists under (the same labels can present opening acts at concerts of the best artists. “