Drop in South Korean Stocks Linked to 'Squid Game' Season Release

Investing.com — On Friday, shares of South Korean companies related to Netflix Inc. (NASDAQ:NFLX) series "Squid Game" saw significant declines following the release of the show's new season.

• Artist United Inc., where "Squid Game" actor Lee Jung-jae is the largest shareholder, witnessed shares plummeting by the daily maximum of 30%.
• Wysiwyg Studios Co., another investor in Artist United, experienced a drop of up to 25%.
• Dexter Studios Co., which collaborates with Netflix, saw a 24% decrease in its share price.

The original release of "Squid Game" in 2021 was a global success, leading to soaring stock prices for local entertainment firms. The series became Netflix's most-watched title globally and was the first non-English program nominated for an Emmy in the best drama category.

With high expectations set for the second season premiering on December 26, critics gave it an 85% approval rating, while viewers rated it at 65% on Rotten Tomatoes, despite mixed reviews from audiences.

The market response to the second season stands in stark contrast to the initial excitement that had previously driven entertainment stocks higher in South Korea. The enthusiasm created by the first season's success had led to optimistic investor sentiment regarding Netflix’s potential for future hits. However, the recent performance of related stocks indicates a shift in sentiment after the newest season's reception.

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