In this photo taken on November 22, 2024, music albums and related merchandise released by K-Pop Groups and BTS, seventeen, Stray Kids and Tomorrow X can be seen in a retail store in Seoul.
Anthony Wallace | AFP | Getty Images
South Korea’s economy has been slowing down and its growth is low. Its currency has been under pressure and the country is in political turmoil. The Trump tariff threat hasn’t made things easy.
However, there is an area that offers hope for investors this year. One of South Korea’s largest cultural exports: k-pop.
So far this year, the four major K-POP companies have underperformed kospiAs of March 4, the growth rate of Kosdaq was 5.39%, and Kosdaq was 8.8%. Hybe, JYP and YG also hit new 52-week highs this year.
Hybe’s SuperGroup BTS, which is counted among artists in its stable, is the largest K-Pop agent with market capitalization and part of the blue-chip Kospi index, while SM Entertainment, JYP Entertainment and YG Entertainment are included in the small Kosdaq.
Starting from 2024, the company’s share performance has changed. As a sales profit of Downbeat album, it fell.
Shinhan Securities analyst Ji In-Hae wrote last month that one of the reasons K-Pop shares gained new investor interests is because the industry does not face risks from U.S. tariffs.
For South Korea, Trump’s threat of “reciprocity tariffs” is imminent.
The country has the biggest tariff differences The United States in the Asian economy is on the average US basis, which means Trump should follow his own threat and South Korea could be subject to huge tariffs.
Promising industry prospects
Optimism surrounding K-Pop stocks is also related to the potential improvements to be achieved this year.
Shinhan Securities’ JI is “overweight” in South Korea’s media and entertainment industry, factors such as the industry’s expected performance in 2025, as popular artists have increased returns and profits compared to last year’s low bases and China reopens its market to South Korea’s entertainment.
South Korea Economic Daily reported last month Back in May, China may lift bans on events that showcase Hallyu or Korean pop culture.
Asia’s largest economy banned retaliation against South Korean content in 2017 in retaliation against the country’s deployment of U.S. terminal high-altitude defense or THAAD missile defense systems, the report said.
Ji said the return of the popular group for the industry’s massive world tour will be a “stronger investment point” for the industry.
BTS is expected to resume full group activities by June, while Blackpink announces plans Start the world tour In the second half of the year.
While four Blackpink members did not resign with the tag when their personal contract expires in 2023, Blackpink’s group activities Still managed by YG Entertainment.
SM Entertainment and JYP also made their debut in 2025.
Citi analysts said in a November note that they are “constructive” in the industry, with total revenues of the four major institutions expected to grow by more than 21% in 2025 and nearly 15% in 2026.
Citi notes that the return of popular groups “will not only do more albums and concert revenue, but should also increase the return on investment for multiple businesses.
