K-pop girl group aespa / Courtesy of SM Entertainment
By Lee Yeon-woo
The shares of Korea’s four major entertainment companies — SM, YG, JYP Entertainment and HYBE — have surged to new 52-week highs, as investors view the K-pop industry as a safe haven amid U.S. President Donald Trump’s escalating tariff dispute with trading partners, analysts said Tuesday.
Growing investor interest is also being fueled by the industry’s anticipated strong performance this year.
According to the Korea Exchange, JYP Entertainment and HYBE saw their stock prices rise by 6.09 percent and 3.15 percent, respectively, during Tuesday’s session, closing at 83,600 won ($57.5) and 245,500 won. Both companies hit a new 52-week high for the second straight day.
Meanwhile, SM Entertainment ended the day at 95,000 won, nearing a breakthrough to a new 52-week high. YG Entertainment, which hit a 52-week high in the previous session, closed at 53,800 won, up by 2.09 percent.
This marks a sharp turnaround from the second half of 2024, when the absence of key artists and various controversies pushed these companies’ shares to their 52-week lows.
K-pop boy group BTS / Courtesy of Weverse Company
The strong upward momentum has been driven by institutional inflows. Trump’s tariffs, which have become a key global market risk, primarily target goods, leaving industries like entertainment largely unaffected, according to securities firms.
Since the start of the year, institutional investors have aggressively bought entertainment stocks, net purchasing 72.1 billion won worth of HYBE shares, 32.8 billion won worth of SM Entertainment, 29.4 billion won worth of JYP Entertainment and 2.1 billion won worth of YG Entertainment.
“The entertainment sector stands to gain significantly from the return of major IPs (intellectual properties) like BTS and BLACKPINK, as well as minimal impact from U.S. tariffs. A stronger yen has further boosted this favorable environment,” Shinhan Investment & Securities researcher Ji In-hae said.
K-pop girl group BLACKPINK members pose with their medals following a special ceremony to present them as Honorary Members of the Order of the British Empire, at Buckingham Palace in London, Nov. 22, 2023. AFP-Yonhap
K-pop juggernaut BTS is expected to resume full-group activities as early as June, while BLACKPINK plans to launch a world tour in the second half of the year.
Anticipation is building for SM Entertainment’s upcoming girl group, Hearts2Hearts, set to debut on Feb. 24 — SM’s first girl group in over four years. JYP Entertainment also kicked off the year with the debut of KickFlip in January, marking its first boy group in seven years.
Another positive catalyst is the potential revival of cultural exchanges between Korea and China.
On Friday, National Assembly Speaker Woo Won-shik met with Chinese President Xi Jinping on the sidelines of the 2025 Asian Winter Games in Harbin, China, and emphasized the importance of cultural exchange. Xi reportedly agreed, stating, “Cultural exchange is a highly appealing aspect of bilateral relations.”
K-pop boy group Stray Kids / Courtesy of JYP Entertainment
In 2016, China contributed around 20 percent of entertainment companies’ total revenue. However, after China imposed restrictions on Korean cultural exports in 2017, this share dropped to around 8 percent and has remained stagnant since.
“With the expansion of the merchandise market in China and the approval of visa-free entry, a revival in bulk album purchases and the resumption of concerts could unlock significant growth potential,” Eugene Investment & Securities analyst Lee Hyun-ji said.
