Goldman Sachs has highlighted that the stock market is currently undervaluing the immense potential of K-pop.

• Goldman Sachs believes the stock market undervalues K-pop’s potential.
• K-pop dominates music sales globally, influencing non-music sectors like Hyundai.
• Despite market skepticism, Goldman predicts significant growth for K-pop investments.

The influence of Korean pop music is undeniable, with a recent industry survey revealing that six out of the world’s top 20 best-selling artists in 2023 were of South Korean origin, along with all three best-selling albums. Notably, the impact of K-pop extends beyond just music, as evidenced by Hyundai retracting from an aluminum supply agreement due to pressure from K-pop enthusiasts.

Despite K-pop’s evident success, the Financial Times’ Asia business editor noted a prevailing sentiment in the market that believes K-pop has reached its peak, reflecting in the declining shares of the largest K-pop management companies over the past nine months.

Contrary to this belief, Goldman Sachs researchers argue that this perception is misguided. They propose that the shares of these companies should be valued significantly higher, suggesting an increase ranging from 85 to 137% compared to their mid-March levels. Moreover, Goldman Sachs predicts a substantial growth in the fanbase over the next three years, emphasizing the long-term potential of investing in the K-pop industry.

Source: Semafor