South Korean Entertainment Stocks Plummet After New ‘Squid Game’ Season Disappoints

Shares of South Korean firms linked to Netflix’s hit series Squid Game dropped significantly on Friday after the latest season received mixed reviews.

Artist United Inc., where lead actor Lee Jung-jae is the largest shareholder, plunged by the daily limit of 30%. Wysiwyg Studios Co., an investor in Artist United, fell by as much as 25%. Dexter Studios Co., a Netflix collaborator from Korea, also declined 24%.

The first season of the survival drama became a worldwide sensation following its 2021 premiere. It dominated Netflix’s charts globally and became the first non-English series nominated for an Emmy Award for Best Drama.

Season two, released on Thursday, had high expectations. Early feedback, however, has been lukewarm, with Rotten Tomatoes showing 85% approval from critics and 65% from viewers. The New York Times remarked that the season hints at “larger ambitions” but fails to deliver, citing a narrative that “stalls.”

The final season of Squid Game is expected in 2025.