Korean cosmetics stocks surge as entertainment shares face steep losses this year

Shares of Korean cosmetics companies have risen sharply this year, while those of entertainment firms have declined, data from the main bourse operator showed Friday.

According to data compiled by the Korea Exchange (KRX), the KRX Consumer Staples index, which includes cosmetics and food companies, rose 17.29 percent this year through Thursday.

Shares of Kolmar Korea more than doubled over the period, while those of Cosmax and APR gained 88.04 percent and 60.82 percent, respectively.

In contrast, the KRX K-Content index, which tracks online platforms, game developers and entertainment agencies, shed 31.37 percent, posting the sharpest decline among KRX industry indexes.

Of the 19 companies in the KRX K-Content index, 17 saw their shares decline over the period.

Shares of Hybe, the agency behind K-pop boy band BTS, tumbled 50.33 percent, while those of Kakao and JYP Entertainment fell 46.26 percent and 45.52 percent, respectively.

"Entertainment stocks' valuation premiums have narrowed as the sector's growth has been compared to the overwhelming growth of the semiconductor sector," said Lim Soo-jin, an analyst at Kiwoom Securities, noting investors were concerned about whether the companies had enough next-generation intellectual property to follow up on their existing IP.

Yonhap