BUSINESS

Divorce news rattles Song-Song couple-related stocks

By Jung Min-kyung
  • Published : Jun 27, 2019 - 16:57
  • Updated : Jun 27, 2019 - 16:57

Entertainment shares and others related to “Descendants of the Sun” power couple, Song Joong-ki and Song hye-kyo, displayed a weak performance Thursday following the surprise announcement of their divorce filing.

Studio Dragon, the main production studio behind “Arthdal Chronicles,” closed 1.29 percent lower from the previous day’s trading at 68,800 won ($59.40). 

Song Hye-kyo appears in an advertisement for Sulwhasoo, as its global brand ambassador. (Amorepacific)

“Arthdal Chronicles” is a blockbuster historical-fantasy series starring Song Joong-ki as the main protagonist. It has been receiving mixed reviews from critics and the audience alike since it first aired on tvN and Netflix on June 1, leading to stock price volatility.

Blossom Media & Cosmetics, a makeup tool manufacturer connected to Song Joong-ki’s management agency Blossom Entertainment, saw its shares fall 2.4 percent to 24,400 won.

Blossom Entertainment, however, is not listed, though industry watchers have fueled rumors of a possible acquisition by Blossom M&C.

Both Studio Dragon and Blossom M&C are listed on the nation’s secondary bourse Kosdaq.

But analysts say that despite their social influence, the couple’s abrupt announcement may only temporarily shock investors, and is not likely to leave a lasting impact on the stocks. 

Song Joong-ki is featured in an advertisement for rice cooker brand Cuchen. (Cuchen)

“Studio Dragon’s latest drop in stock price has stemmed from disappointment in ‘Arthdal Chronicles,’ but it is expected to recover from stable productions slated for the second half of the year,” said Lee Ki-hoon, an analyst at Hana Financial Investment.

In line with Lee’s remarks, Kosdaq-listed rice cooker manufacturer Cuchen, for whom Song Joong-ki is the brand ambassador, closed 3.33 percent higher at 7,140 won.

Amorepacific, which hired Song Hye-kyo as global ambassador for its luxury brand Sulwhasoo, also ended 1.53 percent higher at 166,000 won per share on the main bourse Kospi.

Song Hye-kyo’s agency UAA is also not listed. The agency is a subsidiary of Spackman Entertainment Group, which is headquartered in Korea but listed on the Singapore Exchange.

Top stars Song Hye-kyo and Song Joong-ki are taking legal steps to part ways less than two years into their marriage, both of their agencies confirmed early in the day. The two co-starred in 2016 hit television melodrama “Descendants of the Sun,” which aired on KBS.

By Jung Min-kyung (mkjung@heraldcorp.com)


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