Squid Game season 2 sparks losses for Korean stocks
Korean stocks plunge
Shares of South Korean companies linked to Squid Game saw significant declines on Friday following the mixed reception of the show’s second season.
The highly anticipated return of the global hit series was expected to drive further success for companies connected to the project, but less-than-enthusiastic reviews led to sharp stock drops, reports Bloomberg.
Artist United Inc., a distributor and marketing firm with a stake from Squid Game lead actor Lee Jung-jae, experienced a dramatic 30% drop, reaching the daily trading limit. Other related companies saw similar downturns. Wysiwyg Studios Co., an investor in Artist United, saw its stock plunge by 25%, while Dexter Studios Co., a South Korean partner of Netflix, dropped 24%. The stock declines came after the December 26 release of the second season, which faced mixed reviews.
First Season’s global impact
Squid Game became a worldwide phenomenon when it premiered in 2021, topping Netflix’s most-watched charts across all continents. The show’s success not only solidified Netflix’s global reach but also led to a rally in South Korean entertainment stocks. The series became the first foreign-language program ever nominated for an Emmy Award for Best Drama, cementing its place in TV history.
Mixed reception for Season 2
Despite the high expectations, the second season of Squid Game has faced mixed reviews. While 85% of critics and 65% of viewers on Rotten Tomatoes gave it favourable ratings, some major publications, including The New York Times, expressed disappointment. The review noted that while the season shows larger-scale ambitions, it fails to fully deliver on them, with the narrative struggling to maintain momentum.
As Squid Game prepares for its third and final season in 2025, investors and fans alike will be watching closely to see if the series can regain the success and excitement of its first season. While the immediate stock market reactions have been negative, the show’s global influence remains a powerful force in entertainment.
Reminder, Chinese government bonds are set for their best performance in a decade, with analysts predicting further gains heading into 2025.
