‘Squid Game’ stocks tank in South Korea on Netflix new season letdown

A LESS-THAN-PERFECT debut for the new season of Netflix’s blockbuster series Squid Game sent shares of related South Korean companies sharply lower on Friday (Dec 27).

Artist United, a movie distributor and marketing firm in which Squid Game’s main actor Lee Jung-jae is the largest shareholder, tanked by the daily limit of 30 per cent. Wysiwyg Studios, another Artist United investor, plunged as much as 25 per cent, while Dexter Studios, a Korean partner of Netflix, sank 24 per cent.

The South Korean survival thriller was a massive global success when it premiered in 2021, sparking rallies in local entertainment stocks on expectations of benefits from Netflix’s hunt for further hits. The first season topped the US streaming giant’s most-watched titles on every continent and became the first foreign-language programme ever nominated for best drama at the Emmy Awards.

Expectations were high for season two of the dystopian drama, which was released on Dec 26. While some notable reviews were less-than-favourable, it’s drawn approval from 85 per cent of critics and 65 per cent of viewers so far on Rotten Tomatoes.

“This season of Squid Game hints at larger-scale ambitions but does little to pursue them,” The New York Times said in its review, adding that the narrative “stalls”.

The third and final season of Squid Game is due in 2025. BLOOMBERG