South Korean media stocks surged on optimism Netflix Inc.’s $2.5 billion investment in the nation’s entertainment industry will help produce more international hit series like Squid Game and The Glory.
(Bloomberg) — South Korean media stocks surged on optimism Netflix Inc.’s $2.5 billion investment in the nation’s entertainment industry will help produce more international hit series like Squid Game and The Glory.
Content producer Showbox Corp. surged as much as 26%, the most since Nov. 23, while its rival Studio Santa Claus Entertainment Co. jumped as much as 23%. Netflix’s planned investment over the next four years is approximately double the amount the US streaming service spent in Korea from 2016 to 2021.
The global appeal of Korean pop culture has made entertainment stocks popular among retail investors looking to bank on the next smash series. For two straight weeks last month, a Korean drama called The Glory was the most-watched show on Netflix, performing near the top of the charts in more than 90 countries, from India to Argentina. Other hits include Squid Game, a dystopian TV series, and the hit film Parasite, which won four Oscars.
Read: Netflix Sensation ‘The Glory’ Spurs Bullying Crackdown in Korea
In other key gainers linked to Netflix, Astory Co. gained as much as 15%, while broadcasting services provider CJ ENM Co. rose 3.6%. Media content provider ContentreeJoongAng Corp. climbed as much as 8% and studio operator Studio Dragon Corp. advanced 9.2%.
The moves are reminiscent of the frenzy over Squid Game in 2021, when the share prices of dozens of content makers skyrocketed amid investor optimism and interest from businesses such as Walt Disney Co. and Apple Inc.
Netflix’s latest investment plan was confirmed by Co-Chief Executive Officer Ted Sarandos after he met with South Korean President Yoon Suk Yeol, who is visiting US this week.
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