Entertainment shares in South Korea moved in a negative territory on worries that a decision to deploy the Terminal High Altitude Area Defense (THAAD) on its territory would negatively affect the popularity of so-called Hallyu, or Korean Wave.
Shares in YG Entertainment, which has a boy band Big Bang and Gangnam Style's Psy, nosedived to 34,100 won (30.6 U.S. dollars) at Tuesday's close, the lowest in 52 weeks. The shares traded at 33,800 won as of 1:40 p.m. on Thursday in Seoul trading.
SM Entertainment, which manages K-pop group Girls' Generation and many other Hallyu stars, began to fall from early July to a 52-week low on Tuesday at 28,500 won. The stocks slightly rose to 29,100 won on Thursday.
Other entertainment shares also moved downward since Seoul and Washington agreed on July 8 to deploy one THAAD battery in South Korea by the end of next year.
China has strongly and resolutely opposed to the deployment as it damages security interests of China and breaks strategic balance in the region. THAAD's X-band radar can snoop on the Chinese territory and its military activities.
For the first two days of this week, the concerns peaked as the THAAD deployment would strain relations between China and South Korea, expected to trigger a downturn in South Korea's entertainment businesses. China is South Korea's largest entertainment market.
A recent survey showed that more than four-fifths of Chinese people would support the ban on the appearance of South Korean entertainers in Chinese TV programs if the government does so. It reflects Chinese placing love for their home country before popularity of entertainment stars.
