BYJ - South Korea's third stock-rich entertainer

Source: TWSSG TEAM (thanks)

Entertainment insiders see stocks rise on Korean Wave.

Cr. - koreajoongangdaily

Despite the dip in the local stock market, shareholders of entertainment agencies that have churned out such K-pop bands as Super Junior and 2NE1 are seeing the value of their shares skyrocket - all thanks to the Korean Wave.

The richest of them all is Lee Soo-man, founder and chairman of SM Entertainment, which has produced groups like Girls' Generation, Super Junior, TVXQ, f(X) and SHINee. As of yesterday, the singer-turned-entrepreneur's 24.43 percent stake in SM was valued at a whopping 186.86 billion won ($158.38 million). The stock climbed 1.3 percent yesterday to a record high of 41,500 won, even though the Kosdaq closed down 1.28 percent. Earlier in 2009, the stock was valued at only 1,500 won per share, almost 0.03 percent of the current price.

Having contributed to spreading the Korean Wave not only throughout Asia, its previous focus, but also to the United States and Europe in recent months, SM saw its stocks shoot up 2.5 times this year and now has a market capitalization of 688 billion won.

"The recent success in Paris of concerts by all the bands with SM in June indicates that SM may have a good shot at expanding outside of Asia", said Kim Chang-won, an analyst with Daewoo Investment & Securities.

BoA, a minority shareholder in SM who has 1.25 percent stake in the company amounting to 4.62 billion won as of yesterday, ranks sixth in terms of stock value among Korean entertainers. The 25-year-old singer, who once was active in the United States, is part of the early generation of singers that SM produced in early 2000. Kang Ta, a member of H.O.T., the most popular boy band in the mid-1990s, is eighth on the list, with 1.29 billion won.

Korea's second stock-rich entertainer is Yang Hyun-suk, founder and CEO of YG Entertainment, which has produced Big Bang and 2NE1. As a top shareholder in the company with a 47.7 percent stake, Yang owned 88.91 billion won in shares as of yesterday. The stock value is based on the over-the-counter market price. Having passed a preliminary evaluation for listing in June, YG, the nation's second-largest entertainment firm, is planning an initial public offering in the Kosdaq market on Oct. 13.

YG's over-the-counter price has risen steadily in recent months. Should the momentum continue, market observers predict that Yang will soon join Lee in the 100-billion-won club.

The nation's third stock-rich entertainer is actor Bae Jong-joon, widely referred to as Yon-sama, the nickname he was given by Japanese fans in the early 2000s following the success of his 2002 series "Winter Sonata".

The actor, who runs a few restaurants in both Korea and Japan and has invested in a few TV dramas including KBS's "Dream High", owns a 34.6 percent stake in his agency, KeyEast. As of yesterday, his stake in the agency was valued at 14.28 billion won.

Bae is followed by Park Jin-young, CEO of JYP Entertainment, which has the Wonder Girls and Miss A. The dancer-singer-businessman's 6.14 percent stake in the company he founded tallied at 7.5 billion won yesterday, with a market capitalization of 119.5 billion won, almost one-sixth of SM.