Signs of recovery in stock prices of some major Korean entertainment agencies were observed Wednesday, but fell short of offsetting significant drops seen Tuesday.

A majority of entertainment firms, however, saw a continued slide in stocks.

Such sluggishness is largely due to Chinese authorities’ apparent, yet unofficial, ban on Korean stars’ activities.

Rock band CN Blue (FNC Entertainment)

S.M. Entertainment’s stock price rebound 0.53 percent to 28,650 won ($25.70), while YG Entertainment’s stock edged down 0.73 percent and JYP Entertainment’s share shed 1.87 percent. FNC Entertainment saw 2.61 percent drop.

A day prior, the firms, largely dependent on revenues from the Chinese market, saw slides of 5 to 8 percent in stock prices. YG Entertainment’s share fell 7.96 percent, while S.M. Entertainment’s stock fell 5.32 percent. JYP Entertainment’s stock dropped 5.4 percent and FNC Entertainment‘s shares fell 4.96 percent.

Boy band Big Bang (YG Entertainment)

The drop Tuesday reportedly came on the heels of multiple reports that the General Office of Broadcasting and Television in China informally ordered local broadcasters to follow a set of guidelines Monday, saying Korean idol groups were “prohibited from having activities in China on air” and “are not allowed to have any concerts with more than 10,000 fans.”

Local reports attributed the apparent ban to escalating diplomatic tension between Korea and China after Korea and the United States agreed to deploy the Terminal High Altitude Area Defense missile battery in Korea on July 8. China and Russia have opposed the deployment.

Seoul has emphasized the need to enhance defense system against a possible North Korean missile attack with the deployment of antimissile system. However, Beijing has argued the deployment could renew tensions.

Boy band EXO (S.M. Entertainment)

Some Korean reports Tuesday played down the possibility of a Chinese ban, as the guidelines did not materialize.

Such an unwelcome atmosphere by the “implied regulation,” however, is reminiscent of Japan’s situation when at one moment Japanese TV series began to disappear in China, and might result in a roadblock in the Korean entertainment industry‘s attempt to seek expansion in China, said Park Shin-hee, who ran an entertainment business in China for 11 years, in a radio interview Wednesday.

By Son Ji-hyoung (json@heraldcorp.com)

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