The creator behind the new exchange-traded fund aimed at converting global fans of Korean content into an investment opportunity is optimistic in his premise.
Since its launch on Sept. 1, the KPOP and Korean entertainment ETF
But Jangwon Lee, chief executive of CT Investments and Contents Technologies and the creator of the ETF, is hopeful about the Korean entertainment industry despite the sluggish outlook for global markets.
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“Content consumption, especially digital, is relatively resilient across recessionary and inflationary environments and longer term,” said Lee in an interview with CNBC, adding that it’s “been a tough few weeks across all asset classes” since the fund’s inception.
Shares of Korean entertainment companies have been underperforming overall, with YG Entertainment’s stock price down around 26% year-to-date and Hybe down more than 64% year-to-date.
“We ultimately believe that the underlying performance of the companies in our ETF will provide further momentum in attracting demand from a wider investor universe,” he said.
The KPOP ETF says on its website that it provides “focused exposure to the Korea Exchange-listed companies engaged in the entertainment industry and the interactive media & services industry.” The fund is a 30-stock index, which includes entertainment companies that manage bands such as BTS, BlackPink, and Twice — their respective agencies being HYBE, YG Entertainment, and SM Entertainment.
It also includes content makers such as Studio Dragon, which produced the hit series “Crash Landing on You” and platform companies such as AfreecaTV, through which some livestream themselves playing video games and eating.
“We believe it is still in its early innings given that we are witnessing an inflection point in K-pop and K-content gradually attaining mainstream status globally from what was more a sub-culture in the past,” he said.