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In this photo taken on November 22, 2024, music albums and related goods released by K-POP groups and members of BTS, seventeen, Stray Kids and Tomorrow X Together (TXT) are seen in a retail store in Seoul.
Anthony Wallace | AFP | Getty images
South Korea’s economy has slowed down, with growth reaching a minimum of several quarters. His currency has been under pressure, and the country is in political agitation. Trump’s tariff threats have not facilitated things.
But there is a sector that has offered hope for investors this year. One of the largest cultural exports in South Korea: K-pop.
The actions of the four main K-POP companies have earned between 20% and 33% so far this year, surpassing the KospiThe profit of 5.39% and the increase of 8.8% of Kosdaq, as of March 4. Hybe, JYP E YG have also reached new 52 -week maximums this year.
Hybe, which has the BTS supergroup among the artists in its stable, is the largest K-Pop agency in Market Cap and part of the Kosdaq SM-Chip index, while the SM entertainment, JYP entertainment and entertainment YG are included in the Kosdaq of small capitalization.
The profits mark a change in the performance of the companies from 2024, when had fallen as successful album album earnings.
One of the reasons why K-POP shares are receiving renewed interest of investors is because the sector does not face the risk of US rates, wrote Shinhan Ji In-Hae’s analyst last month, according to a Google translation of his note in Korean.
Tariffs have been a great source of uncertainty for South Korea with Trump’s threat of “reciprocal tariffs” that are coming.
The country has the largest tariff differential On an average base weighted with the United States among Asian economies, which means that if Trump must follow their threats, South Korea could be affected with large rates.
Promising industry perspective
The optimism about K-Pop actions also has to do with the potential impulse that the industry will receive this year.
The JI of Shinhan Securities is “overweight” in the media and entertainment sector of South Korea, citing factors such as the strong expected performance of the industry in 2025 as popular artists return and increase the profits compared to a low base last year, as well as China reopening their market to the entertainment of South Korea.
The Korea Economic Daily reported last month That China will probably raise its prohibition of events that show Hallyu, or Korean popular culture in the country, as soon as May.
The largest economy in Asia imposed a prohibition of the content of South Korea in 2017 in retaliation to the deployment of the country of high -altitude area of the United States, or the Taad antimisile defense system, according to the report.
The return of popular groups in industry and the performance of large -scale world tours until 2026 will be a “stronger investment point” for the sector, JI said.
BTS is expected to resume the activities of the complete group already in June, while Blackpink has announced plans to Launch a world tour In the second half of the year.
While the four members of Blackpink did not sign again with the label when their individual contracts expired in 2023, BlackPink group activities They are still administered by YG Entertainment.
SM Entertainment and JYP have also presented new groups in 2025. The new SM Hearts2hearts rookie group is the company’s first group of girls in four years, while the new group of Jyp Kickflip boys also debuted in January.
Citi analysts said in a note in November that they were “returning constructive” in the sector, waiting for the aggregate income of the four major agencies to grow in more than 21% in 2025 and almost 15% in 2026.
Citi states that the return of popular groups “will make more than boosting the income of albums and concerts: it should also boost the ROI in multiple businesses. Fandom platforms, for example, will see an increase in user traffic, and younger artists below () the same labels can show opening acts in the concerts of the main artists.”
