Positive Signs for K-POP’s Return to Chinese Market as Expectations of “Hanhanryeong” Lift Entertainment Stocks

With signs that China’s nine-year-long ban on Korean culture, known as Hanhanryeong, may be lifted, positive signals are emerging for the K-POP industry. News that China’s state-run broadcaster CCTV plans to invite numerous K-POP idol groups in the second half of this year to hold large-scale joint performances in six major Chinese cities, including Beijing, Shanghai, and Guangzhou, has significantly boosted investor confidence. Mark, a member of SM Entertainment’s NCT, promoted his solo debut album “The Firstfruit” at a pop-up store at Jingdong Mall in Guangzhou from April 19 to 25. Despite the surprise event, over 4,000 Chinese fans gathered on the fifth floor of the mall. In March, NCT WISH visited Shanghai to promote their third mini-album “poppop” and held a press conference attended by around 60 local media outlets. That same month, the girl group IVE held a fan signing event in Shanghai, TWICE conducted a similar event in February, and singer-songwriter Kim Jaejoong met with fans in Chongqing. This contrasts sharply with the situation after 2016, when China effectively halted the import of Korean culture following tensions over the deployment of the THAAD missile defense system. Although the Chinese government has not officially acknowledged the existence of Hanhanryeong, this measure practically closed China, once K-POP’s largest market, forcing Korean entertainment companies to shift their global strategies toward the United States and Europe. Recent political signals are offering hope for improved relations. In November 2024, China granted visa-free access to South Korean tourists, prompting South Korea to announce in March 2025 that it would implement a temporary visa-free policy for Chinese group tourists. The recovery of K-POP’s market in China is also evident in export data. According to the Customs Service, album exports to China dropped from $51.3 million in 2022 to $33.9 million in 2023, but rebounded to $59.8 million in 2024. In the first quarter of 2025 alone, China surpassed Japan, Taiwan, and the United States to become South Korea’s largest album export market, with exports reaching $12.96 million. Lee Jaewon, an analyst at Shinhan Investment Securities, analyzed that “given China’s plans to invite K-POP idols for large-scale tour performances in the second half of 2025, Hanhanryeong can be considered effectively lifted.” The market’s optimism was immediately reflected in the stock market. According to figures from April 25 to May 2, the “HANARO Fn K-POP & Media” ETF recorded the highest return at 11.32% for the week. The “ACE KPOP Focus” ETF (11.21%) and the “TIGER Media Contents” ETF (9.66%) also ranked among the top performers, with all three media and entertainment-related ETFs occupying the top three spots in terms of return. HYBE rose by 14.25%, JYP Entertainment by 11.16%, SM by 8.9%, and YG Entertainment by 5.97%.