[News Today] Chinese investment in K-content

[LEAD]
Chinese capital is stepping up its presence in Korea's content industry. One Chinese tech giant has now emerged as the second-largest shareholder of SM Entertainment.

[REPORT]
In April, a Korean hiphop group staged a performance in China for the first time in eight years.

A Korean musician released an album in Chinese.

Amid China's move to lift its unofficial restrictions on K-pop culture and Korean content, it appears that the Korean entertainment industry is regaining momentum in advancing into the Chinese market.

Around the same time, a major change was made to the management of SM Entertainment.

Chinese IT giant Tencent became the second largest shareholder in the Korean company.

SM announced joint business projects with Tencent, like debuting idols in China, in a bid to advance into the Chinese market.

Prof. Shim Hee-cheol / Dong-Ah Institute of Media and Arts
This looks like an intention to benchmark K-pop's DNA. Exchanges should be made for each other's needs and industrial development.

However, the injection of Chinese funds in SM, Korea's first mega entertainment company and one of its top three entertainment firms, entails greater significance.

The combined market value of Korea's top four entertainment companies is just one fortieth of Tencent's.

Prof. Lee Dong-yeon / Korea Nat'l Univ of Arts
Without meticulous reviews on these Chinese investments, the Korean content market will likely be sold off to China or weaken in the long term.

Chinese funds are moving into Korea on the back of expectations for greater cultural exchanges between the two countries.

Observers say that Korea's cultural content and K-pop are facing a test for survival, as it remains to be seen whether Chinese investment will mean an opportunity or a crisis.