Stock prices of intellectual property (IP) companies across Korea, China and Japan — represented by Labubu, Tiniping and Hello Kitty — have plunged in tandem in the second half of this year. After surging on explosive consumer spending in the first half, shares have completely cooled amid signs of slowing global consumption, failing to rebound even after the seasonal off-peak period has passed.
According to Korea Exchange data on January 11, shares of SAMG Entertainment (419530.KQ), Korea's leading character company, plummeted 59.20% in the second half of this year based on closing prices. This stands in stark contrast to the 621.92% surge during the first half. Securities analysts had expected buying to resume after the third-quarter seasonal weakness, but recovery momentum has been significantly damaged as expectations for overseas market expansion weakened amid U.S. tariff concerns. The remaining balance of more than 600,000 shares from convertible bonds (CBs) eligible for conversion has also increased potential overhang pressure from large-scale selling.
Pop Mart, China's leading IP company, has also seen its stock price fall approximately 30% in the second half. The decline from its yearly high exceeds 40%. Key negative factors include expanded short-selling positions following the first-half rally, along with simultaneous weakening of U.S. consumption and demand for premium figurines in China that has shaken the demand base. Declining resale prices for its flagship IP "Labubu" and accumulated fandom fatigue have also dampened investment momentum.
Japanese entertainment company Sanrio has also seen its stock price drop 29.36% in the second half of this year, erasing all of its 25.78% first-half gains. Despite owning globally popular IPs such as Hello Kitty and Kuromi, the company has been hit by cooling merchandise consumption. Its structure with high revenue concentration in existing IPs has also been cited as a constraint on scalability. Investment sentiment has further weakened amid concerns over declining Chinese consumer preference for Japanese brands during ongoing China-Japan tensions.
Some securities analysts suggest that medium- to long-term growth potential has not been fundamentally damaged. They argue that conditions for a rebound may emerge as short-term pressures accumulated from the steep first-half rally, combined with growing expectations for global economic recovery next year. Given the nature of the fandom-based IP industry, analysts diagnose this as a concentrated short-term correction rather than a structural collapse in demand.
"SAMG Entertainment has begun to establish production and distribution efficiency after moving away from its high-cost structure, so profit leverage improvement is possible if external growth continues," said Lee Jong-won, a researcher at BNK Investment & Securities. "Visible results are also expected in overseas markets including Japan and China as global merchandise sales expand."
