SEOUL - South Korean entertainment stocks rose on April 18 after the nation’s presidential front-runner pledged greater support for cultural exports and government incentives for the industry.

K-culture shares are getting fresh attention on the election as well as their relative insulation from tariff concerns. The sector got a boost a few years ago as the Netflix blockbuster Squid Game (2021 to present) sent investors looking for the next big Korean hit, though that charm had started to wear off.

South Korean former opposition leader Lee Jae-myung, who is the favourite to win the June 3 presidential vote, will “sharply increase” the budget for the culture and entertainment industries if elected, he said in a Facebook post on April 18. He also promised greater tax benefits for the industry.

Shares of KidariStudio, which produces online comics known as webtoons, jumped as much as 15 per cent in Seoul before erasing the gain. K-pop agency YG Entertainment, home of hit girl group Blackpink, climbed as much as 5 per cent, and drama producer Studio Dragon, known for hits like The Glory (2022 to 2023) gained 4.4 per cent.

“We will be reborn as a clear cultural powerhouse,” putting South Korea among the major global nations in terms of soft power, Mr Lee said, targeting 50 trillion won (S$46.2 billion) in cultural exports by 2030. South Korea’s cultural exports totalled US$14.2 billion in 2023.

Mr Lee has positioned webtoons as a key pillar in the nation’s entertainment industry, along with K-food, K-beauty, K-pop and K-drama. He is running in the election following the impeachment of former leader Yoon Suk Yeol over a botched martial law attempt.

K-entertainment stocks have also been attracting interest again as investors see such fields as more immune from the direct impact of US tariffs than more physical products such as semiconductors and autos. 

KidariStudio is up more than 20 per cent in April while fellow webtoon firm Mr Blue has surged more than 50 per cent. Drama producer ContentreeJoongAng and K-pop agency SM Entertainment are up more than 5 per cent each in April. BLOOMBERG

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