Donald Trump’s imposition of a 25% tariff on overseas metal could have brought about alarm amongst South Korean officers, nevertheless it has been music to the ears of 1 sector of the nation’s export-led financial system: Ok-pop.
Buyers have ploughed cash into the business, which is now being seen as a “secure haven” from Trump’s commerce battle with a few of his nation’s closest companions.
As authorities officers warned of the doubtless unfavorable influence of the tariffs, given South Korea is the US’s fourth-biggest provider of metal, shares in South Korea’s 4 main leisure teams soared to their highest ranges for a 12 months.
JYP Leisure and Hybe, the companies behind a number of the most recognisable names in Ok-pop, noticed their respective inventory costs rise by 6.09% and three.15% on Tuesday, in line with the Korea Change, marking a 52-week excessive for each corporations.
Shares in two different business giants, SM Leisure and YG Leisure, got here near reaching yearly highs, in line with the Korea Instances.
Market analysts say Ok-pop has prevented entanglement in Trump’s burgeoning commerce battle, which primarily targets items whereas leaving “tender energy” sectors corresponding to leisure largely unscathed.
The aggressive buy of leisure shares has additionally been pushed by expectations that Ok-pop is about to enter one other increase interval. BTS, whose members have been performing obligatory navy service, are as a result of resume their music careers this summer time, whereas the woman band Blackpink will begin a world tour within the second half of the 12 months.
“The leisure sector stands to realize considerably from the return of main mental properties like BTS and Blackpink, in addition to minimal influence from US tariffs,” Shinhan Funding and Securities researcher Ji In-hae informed the Korea Instances.
Indicators of a revival in cultural ties between South Korea and China can even profit the Hallyu wave of Korean cultural content material.
China was chargeable for a couple of fifth of South Korean leisure corporations’ income in 2016, in line with the Korea Instances, however gross sales have stagnated since Beijing imposed restrictions on Korean cultural imports the next 12 months.
That may very well be about to alter, due to a surge within the merchandise market in China and the choice final 12 months to permit South Koreans to enter China with out visas – a transfer that’s anticipated to result in extra concert events and music gross sales.
Together with movie and TV dramas, delicacies and cosmetics, Ok-pop is considered one of South Korea’s most profitable cultural exports, incomes the nation nearly $900m in 2023 – a rise of greater than a 3rd on the earlier 12 months – in line with the Korea Tradition and Tourism Institute.
Companies in different sectors are nervous, nevertheless, concerning the risk Trump will develop his tariff regime to incorporate autos and semiconductors, which collectively account for greater than 40% of South Korea’s exports to the US.
South Korea’s appearing president, Choi Sang-mok, is to carry a gathering subsequent week to debate his administration’s response to Trump’s tariff on metal and aluminium, together with potential countermeasures.
“Uncertainty within the world commerce surroundings is rising,” Choi stated throughout a gathering with ministers this week, in line with the Yonhap information company.
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