Popularity of
Global OTTs Including Jaebeoljip Maknae Adeul
Growing Expectations for the Lifting of China's Hallyu Ban
[Asia Economy Reporter Kwon Jae-hee] Content-themed exchange-traded funds (ETFs), which had been weak earlier this year, have recently shown strong performance. This is partly due to the seasonal characteristic of content-related stocks experiencing a brief rise around the year-end and the beginning of the year, but it is also interpreted that the fact that K-content such as 'Jaebeoljip Maknae Adeul' (The Youngest Son of a Conglomerate) is ranking first on global online streaming services (OTT) has had an impact. Additionally, growing expectations for the lifting of China's Hallyu ban (ban on Korean content) are also considered to have contributed.
According to the Korea Exchange on the 16th, content ETFs recorded double-digit returns over the past month (November 14 to December 14). The ETF with the highest increase was NH-Amundi Asset Management's 'HANARO Fn K-POP & Media,' which rose 17.68%. Following that, Samsung Asset Management's 'KODEX Fn Webtoon & Drama' rose 17.16%, and Mirae Asset Management's 'TIGER Media Contents' showed a 15.84% increase.
The content stocks commonly included in these ETFs are Studio Dragon, Contentree Joongang, Wysiwyg Studios, and CJ ENM. In fact, all of these stocks surged significantly over the past month. Contentree Joongang rose about 30%, Wysiwyg Studios increased by around 8%, Studio Dragon also rose about 30%, and CJ ENM increased by 27%.
The rise in these stocks is largely thanks to the strength of K-content. Wysiwyg Studios is considered a beneficiary stock of JTBC's currently airing drama 'Jaebeoljip Maknae Adeul.' Wysiwyg Studios is the largest shareholder of RaemongRaein, the production company of 'Jaebeoljip Maknae Adeul.' Contentree Joongang is the parent company of SLL Joongang, which holds intellectual property rights for 'Jaebeoljip Maknae Adeul' together with RaemongRaein.
Expectations for the lifting of China's Hallyu ban are also cited as a background for the strong performance of content ETFs. Recently, Korean dramas have been continuously aired on Chinese OTT platforms, strengthening speculation that China's Hallyu ban might be lifted. In fact, Korean dramas such as 'Hospital Playlist' and 'Twenty-Five Twenty-One' have recently been uploaded on Chinese OTT platforms. Dramas like 'Hyena' and 'Gugyeongi' have been sold as remakes.
Ji In-hae, a researcher at Shinhan Investment Corp., said, "The content industry does not have 'industry seasonality,' but there is 'stock price seasonality' for content, which is generally better around the year-end to the beginning of the year than during the rest of the year." He added, "With the added expectation of the lifting of the Hallyu ban, the global performance of the content sector is expected to be good next year as well."
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