Epex at MBC Every1 Variety Show “Weekly Idol” at the MBC Dream Center on April 23, 2024, in Goyang, South Korea.
MBCPlus | Imase Gety pictures
Closed in a commercial war with the United States and the struggling with poor local consumption, China appears to be ready to manufacture in an unlikely sector: K-POP.
It is announced April 28 that K-Pop Epex Puzzou performance, Fujian Province, will perform on May 31 – the first time Group of idol all the Koreans A concert was held in China the main mainland since 2016.
Moreover, the annual DREAM concert-the longest K-Pop event in South Korea- According to what was reported, an appointment was set The Entertainment Producers Association in Korea said on April 30 that its holding on September 26 is at a stadium consisting of 40,000 seats in Heinan Province.
These developments can indicate a reduction in the informal ban of K-POP on the mainland after South Korea announced the deployment of the high air defense system at the station in 2016, with China The regime’s saying was aimed at restricting the strength of China in the regionAmong other reasons.
The face around the K-POP represents a “structural turning point” for the sector, according to OH Jiwoo, research analyst at CGS International Securities Hong Kong.
“This shift in politics is part of China’s broader strategy to stimulate domestic demand amid a long consumption contraction.”
She noted that consumption has contributed approximately 70 % to GDP in China in 2018, but the share decreased to less than 30 % in recent years, with the growth of the consumer price index in the country near zero.
“In response, the government began to promote cultural events – including foreign pop concerts – to stimulate estimated spending in tourism, hospitality and local trade,” she added.
On April 25, the Chinese Ministry of Culture and Tourism issued a notice calling for the promotion of cultural events, Including concerts and music festivals.
Oh oh The second largest music market in Asia“It emphasizes its strategic importance despite the years of restrictions.”
Diplomatic wrap
Analysts say China’s tidy position on K-POP has a diplomatic dimension that exceeds the desire to increase local consumption.
Citi John Wu and Alicia YAP analyzers said on April 4 that China may seek to restore relations with neighboring countries, including South Korea, in light of its economic challenges.
Members of Girl Girl Sout Corean twice at the MNET Asian Music 2018 Awards at the Asia International Fair on December 14, 2018 in Hong Kong.
VCG | China Visual Group Gety pictures
They said that cultural diplomacy may appear as a major starting point, which reduces the informal embargo on the content of South Korea and the resumption of revenue flows that depend on fans of K-POP in the region. The sector was described by them as “a long -term beneficiary of (A) changing the global order.”
CGS ‘OH repeat this offer, as CNBC told “K-POP re-introduction can help diversify cultural offers and enhance regional good intentions.”
She added that China appears to be confused with South Korea while setting temporary borders on a specific Western content, including Hollywood films.
OH said that the shift not only reaches the economy of the former fans, but also represents an opportunity to deepen cultural participation in Asia, which will lay the basis for long -term structural growth in the region.
K-pop promise
China’s potential K-POP can activate the entertainment industry in South Korea, which retains the promise of growth at a time when other industries face the threats of customs tariffs.
“Although the market is very volatile due to definitions, (entertainment and the media) is not affected by definitions at all, while the possibility of opening China is valid,” wrote Ji In-Hae from Shinhan Securities in a note on April 14.
“The basic revenue drivers, the concerts, the concerts, and the content of the fans-are digital and incalculator, making them immune to the border definitions,” said CGS ‘OH. Even if the fans purchased albums and goods, the identification tariff is “minimal”, given the low unit prices and loyal demand for fans.
“Contrary to semiconductor or cars, as the global trade policy directly affects supply and pricing chains, the K-POP consumption is much less sensitive to protectionist measures,” she added. The semi -conductors and cars are two major South Korea exports.
Last month, South Korea announced a Support package of $ 23 billion For the semiconductor sector in light of uncertainty about customs tariffs. The Trump administration imposed a 25 % tax on all vehicles shipped to the United States, and another 25 % on steel and aluminum imports.
South Korea Hyundai and Kia from The best selected brands In the United States, according to CarPro. Also country The fourth largest steel source for the United States In 2024, according to the International Trade Department under the US Department of Commerce.
K-POP shares
China’s concert market will provide a big boost in 2025, if the country raises the informal embargo on South Korean artists. Joshua Kim wrote from CGS on February 10 /
“Therefore, if China lifted the ban imposed on Korean artists, we expect China to represent more than 25 % of concert revenues in 2025, it exceeds the contribution in 2016,” he said.
The stock analyst in Morgan Stanley, Saion Park, said that she will consider China to reopen a “strong, potential catalyst” that can pay profits and fair value estimates much higher, although reopening is likely to be gradual.
From the OH point of view, approval of the EPEX party is the “policy test” that can pave the way for greater business. She noted that the events of the smaller fans by girls ’groups twice and Yves in Shanghai can indicate that China begins with medium -level work, before applying for the broader re -participation.
Seoul, South Korea – February 03: Ive’s IVE’s The Mini Conference “IVE EMPTY” in Conrad Seoul is attended at YeongDeungpo -gu on February 03, 2025 in Seoul, South Korea. (Photo by Chosunilbo JNS/IMAZINS via Getty Images)
Chosunilbo JNS | Imase Gety pictures
Epex is a relatively rising group in this industry, after its first appearance in 2021, but OH said that these are not isolated approvals, instead, it is a wider transition towards high -capacity events.
“With the position of Hybe, JYP, SM and YG already for the global scene tours, we expect Korean agencies to move quickly to liquefy the demand once the restrictions are fully raised. These developments enhance the issue of the scenario of reopening the multiple stages and provides a strong stimulus for the four adults.”
Or to quote a Song 2009 From YG Entertainment’s 2NE1, K-POP tells China, “It has been a long time, but we are here now.”
Correction: This story has been reviewed to better reflect the effect of K-Pop in China, and the incorrect price offer.
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