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Entertainment shares jump on reports of end to China's 'ban' on K-content

Published: 20 Feb. 2025, 13:08 Updated: 20 Feb. 2025, 17:22

KIM JU-YEON
[email protected]

K-pop firms' logos [EACH COMPANY]

Shares of Korean entertainment firms closed higher Thursday after reports of China lifting its ban on Korean content came out the previous day.

China will open up cultural exchanges with Korea in the first half of this year, starting with the dispatch of a cultural delegation from the private sector next month, the Korea Economic Daily first reported Wednesday. The newspaper cited a high-ranking official on a committee focusing on Asia-Pacific and Chinese relations in preparation for the Asia-Pacific Economic Cooperation (APEC) summit.

When asked about the potential lift, Korea's Ministry of Foreign Affairs on Thursday said it has continuously emphasized the importance of cultural exchange, including that of media content, between the two countries. A spokesperson said the ministry has urged China to expand such active exchanges, particularly with Korea, and will continue to do so.

K-pop agency YG Entertainment rose 13.16 percent to 60,200 won ($42) from the previous trading session while its IP management and advertising subsidiary, YG Plus, shot up 29.86 percent.

SM Entertainment went up 5.08 percent, and HYBE and JYP Entertainment rose 1.43 percent and 1.73 percent, respectively.

Movie and drama producer and distributor CJ ENM went up 7.83 percent to 60,600 won. Drama studio AStory, known for producing hits like “Kingdom” (2019-) and “Extraordinary Attorney Woo” (2022) shot up 30 percent, hitting its daily price limit.

Beijing unofficially banned the airing of Korean cultural content and K-pop stars’ performances or media appearances in China in retaliation against Korea’s deployment of a U.S.-led Terminal High Altitude Area Defense system in the country in 2017.

China’s official stance is that there is no such ban in place. Korean media content, however, is required to undergo state screening before being exported to the country, and rejections do occur. The KDB Future Strategy Research Institute, which works under the Korea Development Bank, estimated that entertainment and related markets’ losses amounted to 22 trillion won in 2017 when the boycott started.

Beijing issued a plan to stabilize foreign investment in 2025 that State Council executive members approved on Wednesday. A stated goal was “opening its education and cultural sectors,” China's state-run Xinhua News Agency reported the same day.

The country will lift restrictions on loans for foreign-invested enterprises and provide support that China hopes will spur foreign investment in its high-tech and service sectors including culture, tourism, sports and health care.

Update, Feb. 20: Added numbers as of market close and statement from the Ministry of Foreign Affairs.

BY KIM JU-YEON [[email protected]]