SHARE prices of major South Korean entertainment companies that do business with China plunged last week, amid increasing market worries about the potential impact of Seoul’s decision to deploy an advanced missile defense system.

    S.M. Entertainment Co., known for such K-pop super-groups as Girls’ Generation, fell by 3.1 percent, while JYP Entertainment Corp., the company known for producing Psy, dropped by 3.42 percent on South Korea’s KOSDAQ stock exchange. CJ Corp. was down 5.41 percent at the close.

    Chinese video-streaming provider Youku Tudou Inc. sent a notice on Sina Weibo on Thursday, saying a fan meeting for the drama Uncontrollably Fond, with the scheduled attendance of two South Korean stars in Beijing on Saturday, was to be postponed due to “force majeure.”

    But Youku denied concerns that South Korea’s agreement to deploy the Terminal High Altitude Area Defense (THAAD) system would limit development prospects for South Korean stars and entertainment businesses.

    According to two sources cited by the South China Morning Post, China’s national media regulator informed TV stations in Guangdong Province that TV shows featuring South Korean pop stars would not be granted approval to air “in the near future.”

    South Korean pop music and TV dramas are among the most popular imported entertainment content in China. South Korean film companies have also had increasing success in selling remake rights and co-producing films with Chinese studios.

    South Korean media have reported that Chinese authorities will likely move to curb South Korean stars’ activities and programs in China.

    The State Administration of Press, Publication, Radio, Film and Television has not commented on the market speculation.

    Chen Shaofeng, deputy head at the Institute for Cultural Industries of Peking University, said the planned THAAD deployment will have an adverse effect on South Korea’s culture and entertainment industry. “As much as 70 percent of South Korea’s cultural industry is for the foreign market, of which China accounts for nearly 50 percent,” Chen said.

    Chen added that South Korean entertainment companies that are heavily involved in China will be the hardest hit, and that Chinese companies investing in South Korea will also suffer losses.

    (SD-Agencies)