Invest in K-pop, Goldman says

The stock market undervalues K-pop, according to Goldman Sachs.

Korean pop music is ubiquitous: Six of the world’s top 20 best-selling artists in 2023, and all three of the best-selling albums, were South Korean, an industry survey said. Its power stretches beyond music: Hyundai pulled out of an aluminum supply deal after K-pop fans campaigned against the plan.

But the market thinks it has peaked, the Financial Times’ Asia business editor wrote. Shares in the four biggest K-pop management companies have fallen over the last nine months.

Goldman Sachs researchers said this was a mistake; they suggested the shares should be 85 to 137% higher than where they were in mid-March, and predicted that the fanbase will grow rapidly for at least the next three years.