NSENM, a comprehensive entertainment company, announced on June 11 that it will actively pursue entry into the Chinese market, buoyed by expectations of the lifting of the Hallyu Ban and improving relations between South Korea and China. As expectations for expanded cooperation between the two countries grow under the "pragmatic diplomacy" approach of the Lee Jaemyung administration, including its commitment to fostering the cultural industry, investor sentiment in the domestic entertainment sector has significantly improved.
Building on this momentum, NSENM visited Chongqing, China, from June 5 to June 8 and signed a memorandum of understanding (MOU) with the local government. This agreement is particularly significant as it marks the first official cooperation between South Korea and China since the Hallyu Ban, establishing a foothold for entry into the Chinese media and content market.
The securities industry believes that if the Hallyu Ban is fully lifted, the entertainment sector will benefit the most. China has previously shown enormous demand for various content such as K-dramas, variety shows, and advertisements. If the import of Korean Wave content, which was effectively halted after the 2016 Hallyu Ban, resumes, a positive ripple effect is expected throughout the related industries.
In fact, entertainment stocks have attracted attention as a "tariff-free zone" in the first half of this year, rising by nearly 50% on average. The prevailing view in the industry is that profit improvements will accelerate in the second half of the year due to the recovery of revenue sources following the lifting of the Hallyu Ban, making further increases highly likely.
Against this backdrop, NSENM has been the sole domestic entertainment company participating in investment briefings for the Chongqing Life Science and Technology City Project since last year, maintaining close consultations with the local government. Through this agreement, NSENM will promote joint planning and production of content such as films, dramas, and performances, focusing on the Yuzhong District of Chongqing.
Additionally, the company plans to actively develop cultural industry projects utilizing local infrastructure, such as large concert venues and science fiction film locations. Programs for artist exchanges and nurturing new talent, administrative and legal support for performance permits, and expanded investment and tax benefits will also be implemented. Furthermore, NSENM aims to strengthen marketing and business cooperation by linking with Chinese e-commerce platforms such as JD.com.
In particular, NSENM plans to hold a variety of events, including concerts and cultural performances organized by Chongqing City, together with its affiliated artists in July and October. Through these activities, the company intends to enhance its brand recognition and influence in the local market and diversify its content business by actively utilizing advanced filming infrastructure.
Ko Byungcheol, CEO of NSENM, stated, "With expectations for the lifting of the Hallyu Ban, new growth opportunities for the domestic entertainment industry are increasing." He added, "We will secure new growth engines in the Chinese market by expanding our global network and diversifying our content business going forward."
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