Korean entertainment ETFs fly high as K-pop stars resume world tours

[Source: each company]

Exchange-traded funds (EFFs) tracking South Korean entertainment and media stocks are amongst rare survivors in Korean market routs as K-pop stars return to global stages and new TV productions draw host response.

The return rate of Hanaro FN K-Pop & Media ETF, containing stocks of Korea¡¯s top entertainment agencies rose 9.35 percent in the last week only, according to the Korea Exchange data on Monday. Shares of BTS label Hybe added more than 10 percent so far this month, while those of JYP Entertainment and SM Entertainment jumped 12 percent and 9 percent, respectively.

Korean entertainment stocks recently have been on an upward trajectory on the expectation of better earnings from concert tours.

E-Best Investment & Securities estimated JYP Entertainment¡¯s second-quarter operating income at 18.4 billion won ($14 million) on revenue of 64.3 billion won, which would be, respectively, up 92.1 percent and 58.5 percent, from a year earlier. JYP¡¯s top stars TWICE and Stray Kids began world tours in the second quarter.

Extraordinary Attorney Woo. [Source: A-Story]

Media content stocks are also on a roll, elevating returns for related ETFs after their latest TV shows have been received well.

KODEX FN Webtoon & Drama has recorded a return rate of 6.87 percent, and TIGER Media Contents 6.82 percent.

Shares of A-Story, which produced "Extraordinary Attorney Woo" airing on global video streaming platform Netflix, jumped 71 percent from its 52-week low touched on June 24. Those of another major Korean production house Studio Dragon gained 15 percent from its 52-week low marked on June 23.

On Tuesday, JYP Entertainment shares closed 2.2 percent lower at 52,300 won and those of Hybe down 2.5 percent at 155,500 won. A-Story shares fell 2.7 percent to 30,500 won and Studio Dragon 4.3 percent to 71,600 won.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]