Seoul:Shares of South Korean cosmetics companies have seen significant gains this year, while entertainment firms have experienced declines, as reported by data from the main bourse operator.
According to Yonhap News Agency, the KRX Consumer Staples index, which includes cosmetics and food companies, increased by 17.29 percent this year through Thursday. Notably, shares of Kolmar Korea Co. more than doubled during this period, with Cosmax Inc. and APR Co. experiencing gains of 88.04 percent and 60.82 percent, respectively.
Conversely, the KRX K-Content index, which tracks online platforms, game developers, and entertainment agencies, dropped by 31.37 percent, marking the largest decline among KRX industry indexes. Out of the 19 companies within the KRX K-Content index, 17 experienced a decrease in their share values.
Shares of Hybe Co., the agency responsible for K-pop sensation BTS, plummeted by 50.33 percent. Kakao Corp. and JYP Entertainment Corp. also suffered declines, with their shares falling by 46.26 percent and 45.52 percent, respectively. Analyst Lim Soo-jin from Kiwoom Securities Co. commented that the valuation premiums of entertainment stocks have narrowed, as the sector's growth has been overshadowed by the semiconductor sector's expansion. This has raised concerns among investors about the companies' ability to generate new intellectual property to sustain growth beyond their existing IP.