Rising Expectations for JYP’s Return to Chinese Market Through Korea-China Content Exchange Cooperation

The signing of a content exchange and cooperation agreement between South Korea and China has increased the likelihood of the K-pop industry making a comeback in that market. KBS entered into a media exchange and cooperation agreement with China’s State Media Group (CMG), aiming to facilitate extensive content exchanges across not only news and sports but also cultural fields. The agreement includes “the introduction of K-pop artists through KBS’s flagship program Music Bank in China.” KBS President Park Jang-beom stated, “It is significant because it creates a breakthrough that allows the entire South Korean content industry to enter the Chinese market on a serious scale.” Shortly after the agreement was signed, JYP Entertainment’s stock price rose by more than 9.39%, while SM Entertainment’s stock climbed by 8.11%. YG Entertainment and HYBE also saw increases of 4% and 3%, respectively. These stock gains are seen as a reflection of actual expectations for a return to the Chinese market. A key factor driving JYP’s stock rise was a meeting between President Park Jin-young and President Xi Jinping. President Park shared on social media footage of him talking with President Xi and President Lee Jae-myung during the state banquet at the Korea-China summit. Korean lawmaker Kim Yong-bae reported via social media that during those discussions, a proposal to hold large-scale concerts in Beijing was made, and President Xi instructed Foreign Minister Wang Yi to take action. SM Entertainment’s stock rise is also notable. Analysts attribute this to SM’s historically sensitive reaction to news related to China, as well as the fact that Chinese tech company Tencent is SM’s second-largest shareholder. This agreement marks the first major resumption of cultural exchanges in nearly 9 years since China imposed a de facto ban on K-pop following the deployment of THAAD systems in 2016. President Lee Jae-myung and President Xi Jinping met at the Asia-Pacific Economic Cooperation (APEC) summit, with President Lee describing it on social media as “very meaningful because it fully restores Korea-China relations.” Experts in the K-pop industry predict that this agreement could go beyond simply lifting a ban to open the way for a full-scale entry into the Chinese market. With the resumption of content exchanges, there is hope that the South Korean entertainment industry’s access to the Chinese market, which has been blocked for some time, will gain a new momentum.