Concerns are mounting in the South Korean entertainment industry that it will lose its major market for hallyu, or Korean wave, after multiple media reports that China will ban Korean dramas, films, and variety shows from being televised and also celebrities from appearing on advertisements. The reported ban comes several months after Korea and the United States agreed to deploy Terminal High Altitude Area Defense (THAAD) anti-missile system in local soil in July to counter threat from North Korea.

According to China’s entertainment market research firm EntGroup Inc. on Sunday, the Chinese authority has recently passed an order to broadcasting stations to “ban Korean dramas, films, and entertainment shows as well as remade content.” Programs that have already been deliberated or those broadcasting format that have already been officially imported, however, will be excluded from the latest measure.

Other online entertainment agencies also reported about the latest ban on Korean content. According to reports, an official document for the ban has not been issued but a guideline has been given behind the curtains to 31 regional cable networks across provinces and cities in China as well as regional broadcasters and online video platform providers.

Concerned about the latest reported measures that could largely affect content exports to China, Korean entertainment firms have rolled up their sleeves to minimize the impact of strengthened regulation on Korean content, which is seen as a retaliation against Korea’s decision to deploy U.S. THAAD system.

Nevertheless, following media reports, stocks of Korean entertainment firms plunged on Monday. Shares of S.M. Entertainment Co., the country’s largest entertainment agency, fell 8.16 percent or 2,300 won ($1.94) from the previous session to end at 25,900 won while those of YG Entertainment Inc. fell 6.9 percent or 1,950 won to close at 26,300 won. Shares of Chorokbaem Media Co. also went down 8.03 percent to 2,120 won while those of Keyeast Co. 3.28 percent to 2,505 won and CJ E&M Corporation 6.77 percent to close at 60,600 won.

By Lee Hyang-hwee and Park Man-won

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]