Prohibition Order
On November 21, the three largest entertainment companies in South Korea hit a 52-week low without exception on the KOSDAQ stock exchange.
Specifically, SM, YG Entertainment and JYP Entertainment lost 8.16%, 6.9% and 2.79%, respectively. Cosmetics manufacturers remained bearish as well. For instance, Amore Pacific lost 3.76% and the rate of decline was 3.1% for LG Household & Health Care, 5.73% for Cosmax, 5.48% for Tony Moly and 3.48% for It’s Skin.
This is because of the news that the Chinese government would ban South Korean entertainment content. According to Chinese news agencies, the Chinese government told local broadcasting stations not to air South Korean TV dramas, TV shows, movies and the like although the government has denied the instruction. Earlier, the China National Tourism Administration imposed regulations on travel to South Korea, mentioning that the regulations were against low-cost travel.
No South Korean TV drama has been permitted to be broadcast in China since September last year. “It seems that rumors are turning into reality with regard to the Chinese government’s restrictions on Hallyu content,” said an industry insider, adding, “The restrictions are predicted to include not only TV broadcasting but also broadcasting via Internet platforms.”