How “Gangnam Style” Increased The Stock Price Of A Semiconductor Company
There is a semiconductor company in Korea called DI that is known for creating products like “Monitoring Burn-In Tester” and “Wafer Test Board.” The company lost money in the last four quarters. However the stock price shot up from 2,000 to 5,700 won ($1.80 to $5.12) in about 3 weeks. How did this happen?
DI’s chairman and main shareholder is named Park Won-ho and he is the father of Park Jae-sang (known as Psy). Psy is the singer behind the popular song “Gangnam Style.” The song “Gangnam Style” was the number one song on Billboard and was the top selling song on iTunes for a while there. Justin Bieber’s manager Scooter Braun even signed Psy. Many people have been investing in DI shares because of the popularity of the “Gangnam Style” song.
In Korea it is quite common for a generous wedding gift to arrive when a family member marries a company owner. For example back in 2009, shares in a company called Bolak went up from 2,000 won to 9,000 won after the owner’s daughter in the company married into the family that runs LG. Currently Bolak’s shares are hitting around 3,110 won.@amitchowdhry or on Google+ at +AmitChowdhry