What does manufacturing semiconductor testing devices have to do with the raging global popularity of "Gangnam Style"? We have no idea, but because D.I. Corp. chairman Park Won-ho is also the father of international horse-dancing king Psy, there has been a run on the stock. This happened even though Psy doesn't actually, you know, make business decisions for the company or own any of its stock.
Back on July 15, when "Gangnam Style" was first posted to YouTube, D.I. Corp. shares were trading at 1,600 won. On Tuesday, they closed at 3,645 won per share (or about $3.26), up an incredible 127 percent, and boosting its market cap past $90 million. You can see the incredible run-up of the last two months on the stock chart from Bloomberg.
So, why do Koreans think "Gangnam Style" is good news for the bottom line of a semiconductor company? Er, it's unclear. Apparently Korea's "legion of retail investors, mainly middle-aged people, tend to jump on speculative stocks," Reuters' Christine Kim writes. That can be a big deal on the Korean stock market, since retail investors account for about 70 percent of all transactions, notes The Korea Times.
"The positive sentiment from 'Gangnam Style' has attracted investors just because of the fact that the company is owned by Psy's father and uncle," said Lee Sun-tae, a researcher at NH Investment and Securities told Kim. Of course, before you jump into the fray of the Korean Stock Exchange, keep in mind Sun-tae's long term prediction: "The popularity will slowly dissolve in time, naturally."
This article is from the archive of our partner The Wire.
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