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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Investor sentiment toward Korean content-related stocks, including CJ ENM, has deteriorated sharply following actor Jo Jin-woong’s announcement of retirement amid controversy surrounding his past juvenile record. Market participants view the uncertainty over the broadcast of the drama Signal 2, in which he stars, as a key factor. Concerns have emerged that if a high-budget production fails to air, it could negatively affect the earnings of related companies. Nevertheless, analysts note that while sentiment has weakened, the overall financial impact is expected to be limited.
According to the Korea Exchange on December 8, CJ ENM closed at KRW 60,900, down 2.25% for the day and 26% below its intraday peak of KRW 82,300 recorded on September 22. Foreign investors and institutional investors sold KRW 700 million and KRW 1.7 billion worth of shares, respectively.
Jo Jin-woong’s announcement of retirement, prompted by reports of a juvenile sentence involving robbery and sexual assault during his high school years, is seen as contributing to the decline in share price. CJ ENM’s broadcasting subsidiary tvN had planned to air Signal 2 early next year as part of its 20th anniversary lineup. Following the success of Season 1, the second season was written by renowned writer Kim Eun-hee and featured returning cast members Kim Hye-soo, Lee Je-hoon, and Jo Jin-woong. Production costs alone reportedly amount to several tens of billions of won.
With Jo Jin-woong’s withdrawal, the broadcast outlook for Signal 2 has become uncertain. As a result, shares of Studio Dragon—CJ ENM’s subsidiary and the planning company behind the series—fell 0.77%, while ContentreeJoongAng, the parent company of BA Entertainment, the show’s production studio, also declined 1.88%.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
