[Featured Stock] ToBeSoft Rises on Pororo Baby Products' Local Entry Push Amid China's Birth Restrictions Easing

[Asia Economy Reporter Minwoo Lee] ToBeSoft's stock price is on the rise. Recently, as China has effectively begun the process of abolishing birth restrictions amid the population cliff crisis, it appears that ToBeSoft's affiliate's past efforts to enter the Chinese market with Pororo children's clothing and baby products have come into the spotlight.

As of 10:49 AM on the 1st, ToBeSoft's stock price recorded 2,480 KRW, up 10.47% compared to the previous day. The news that DCG, in which ToBeSoft holds a 31.97% stake, had previously pursued entry into China with baby products seems to have been highlighted.

Previously, DCG had promoted the launch of children's clothing and baby products featuring the Pororo character in China. Additionally, it signed a memorandum of understanding (MOU) with 'RedinWanghongWang,' an agency for famous 'Wanghong' (internet celebrities) on Chinese social networking services (SNS), and has experience operating a Dongdaemun O2O (online-to-offline) platform business. Given its considerable history of entering the Chinese market, expectations have grown for a renewed push into the local baby business in the future.

Meanwhile, on the 31st of last month, the Central Political Bureau of the Communist Party of China reviewed the "Decision on Improving Family Planning Policies and Promoting Long-term Balanced Population Development" at a meeting presided over by Party General Secretary and President Xi Jinping, deciding to expand the childbirth limit from two to three children. Since the birth restriction policy was first introduced in 1979 to curb population growth by allowing only one child per family, it shifted to a two-child encouragement policy in November 2015. With the recent increase to three children, it is being evaluated that the birth restriction policy has effectively been abolished after more than 40 years.