K-Content Stock Experiences a 'Brief Boom'

Suriname Gains Popularity During Chuseok Holiday
Production Company Contentsree Joongang's Stock Temporarily Rebounds
High Market Volatility Makes Catch-Up Buying Risky

[Asia Economy Reporter Hwang Yoon-joo] Thanks to the success of domestic content such as ‘Squid Game’ and ‘Suriname,’ related stocks also saw a brief boost. However, considering the highly volatile stock market situation, chasing after these stocks seems to carry significant risk.

According to the Korea Exchange on the 15th, Contentsree Joongang rose 6.3% over three trading days from 38,750 won on September 8 to 41,200 won the previous day. Although the stock price closed down at 39,800 won on the 5th, it was boosted by the Netflix original drama ‘Suriname,’ released during the Chuseok holiday (September 9), which ranked 8th in popularity. Contentsree Joongang is the production company of ‘Suriname.’

Netflix also rose 3.99% from $227.44 to $236.53 during the Chuseok holiday period (September 8 to September 12). The stock had shown a sluggish trend over the past month, but it briefly jumped during the Chuseok holiday when ‘Suriname’ was released.

[Image source=Yonhap News]

With the drama ‘Squid Game’ winning the Emmy Awards, the highest honor in the U.S. broadcasting industry, there is renewed attention on K-content-related stocks and global online video services (OTT). However, rushing to chase these stocks is risky. This is because market volatility has recently increased.

On the 13th, the U.S. Consumer Price Index (CPI) rose 8.3% compared to the previous month, increasing the likelihood that the Federal Reserve (Fed) will take a giant step (raising the benchmark interest rate by 75 basis points). There is also analysis suggesting that the tightening policy could last longer than investors expect.

As a result, investor sentiment in both the U.S. and domestic stock markets has weakened. In fact, Contentsree Joongang and HYBE briefly surged right after the Chuseok holiday but failed to maintain momentum.

Contentsree Joongang, which rose more than 9% intraday to 42,450 won on the 13th, fell below the 40,000 won mark that morning, and HYBE, which rose to 165,000 won on the same day, dropped to 155,000 won.

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