DearU Hits Upper Limit Again... Surpasses 90,000 Won

Growth Potential of a Highly Valued Comprehensive Entertainment Platform

[Asia Economy Reporter Gong Byung-sun] DearU, a newly listed stock that hit the "ttasang" (first-day double price increase) on its debut, is surging again after a two-day pause.

According to the Korea Exchange on the 16th, DearU closed the previous day at 83,400 KRW, up 29.91% (19,200 KRW). By hitting the upper limit, DearU has already surpassed the target prices of 47,000 KRW and 73,000 KRW set by Samsung Securities and Hanyang Securities, respectively. On the morning of the same day, DearU rose more than 10%, soaring to the mid-90,000 KRW range. This marks an increase of about 70,000 KRW from the initial public offering price of 26,000 KRW within just five trading days since listing.

The reason DearU is attracting attention is due to the growth potential of its comprehensive entertainment platform. DearU’s platform, "Bubble," is effective because it enables two-way communication between artists and fans, and it has surpassed 1.2 million paid subscribers within one year and six months since its launch. Furthermore, based on these potential customers who are paid subscribers, it is possible to create an industry called "Fan-dustry" by producing artist intellectual property (IP)-based photos, videos, and related merchandise, which can also generate revenue. DearU plans to launch a platform called "MyHome" in the first quarter of next year, commercializing and selling artists’ handwritten notes and emoticons as products.

Major agencies such as SM and JYP Entertainment, which hold 36.7% and 21.3% of DearU’s shares respectively, serve as content providers. SM, which has sold approximately 13 million albums cumulatively through the third quarter of this year, is recently growing centered on "aespa." Aespa is already gaining popularity on platforms like YouTube and TikTok, and it is expected that this popularity will be drawn to DearU’s platform, accelerating growth. Additionally, JYP plans to unveil artist groups such as the Blind Package, LOUD Project, and Studio J next year.

Demand is also expected to be stable. Compared to the 2000s, fandoms are getting younger while their purchasing power is also strengthening. Moreover, the MZ generation (Millennials + Generation Z) has a high experience rate with platform-based subscription economies. According to a shopping research firm Consumer Insight in September, 75% of people in their 20s responded that they have used subscription services.

Park Min-joo, a researcher at Hanyang Securities, explained, “Based on these tendencies, DearU has high user satisfaction and loyalty,” adding, “As the purchasing power of the MZ generation strengthens, the influx and retention rate of new subscribers will be maintained at a high level.”

This content was produced with the assistance of AI translation services.