by Cho Seulkina
Published 29 Jul.2025 08:09(KST)
Hana Securities stated that with August, a period typically regarded as a correction phase for the domestic stock market, approaching, investors should prepare for the potential lifting of the "Hallyu Ban" (Hanhanryeong). The firm advised not only to select stocks likely to benefit immediately, such as those in the entertainment and cosmetics sectors, but also to explore new investment opportunities like the use of stablecoins.
On July 29, Kim Dooun, a researcher at Hana Securities, said in the 'DIN (Doo It Now)' report, "August, a month when we must prepare for the next leap, is the right time to get ready for the increasingly likely lifting of the Hanhanryeong."
First, Kim pointed out that there are both domestic and international correction factors for the stock market in August. He mentioned that over the past 20 years, the average monthly return for the KOSPI and KOSDAQ indices in August has been sluggish at around -1%. He also noted that tariff negotiations originating from the United States are in their final stages, and expectations surrounding the new government's tax reform bill are diminishing.
He stated, "If a correction occurs, it will likely be limited to around 7% on average, similar to previous correction periods. After the correction, a second rally centered on existing leading stocks is expected. Given the stock market's tendency to reflect the future in advance, investors should begin making strategic decisions now. This is the right time to prepare for the lifting of the Hanhanryeong."
Kim also noted that at the end of October, a meeting of major national leaders is expected in Gyeongju during the Asia-Pacific Economic Cooperation (APEC) summit. He explained, "Amid the prolonged US-China power competition, each country has incentives to share updates and establish new rules. Within this context, there is a possibility that the Hanhanryeong could be lifted." In particular, unlike the Moon Jaein administration, which maintained strategic ambiguity, the Lee Jaemyung administration is pursuing pragmatic diplomacy and emphasizing the restoration of economic cooperation with China, further supporting this outlook.
It has already been nine years since the Chinese government began unofficially banning or restricting the distribution and activities of Korean Hallyu content-related industries in China through the Hanhanryeong. According to the Peterson Institute for International Economics (PIIE), the damage to Korea's tourism industry from the Hanhanryeong is estimated at approximately $6.7 billion (about 9 trillion KRW).
Kim stated, "If the Hanhanryeong is lifted, we can expect beneficiaries in the entertainment, cosmetics, and duty-free sectors." He added, "If we select stocks within these sectors that are ranked high in market capitalization, are expected to see net profit growth, and have experienced significant declines from their annual highs, notable picks include HYBE in entertainment, Cosmax in cosmetics, and Lotte Shopping in duty-free."
He also emphasized that, considering the changed economic environment in China, there could be new opportunities different from those in the past following the lifting of the Hanhanryeong. He suggested, "From a possibility standpoint, stablecoin payments and usage could be expected for Chinese tourists entering Korea."
He continued, "Although the issuance of a KRW stablecoin has been delayed due to opposition from the Bank of Korea following the proposal of the Digital Asset Basic Act, if the Hanhanryeong is lifted and the number of Chinese tourists increases, KRW stablecoin could be used for duty-free payments." He further evaluated, "Hotel Shilla and Kakao Pay, which have partnered with Alipay and WeChat Pay?services that account for 95% of the Chinese payment market?offer strong investment incentives."
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