K-Pop Stocks Can Still Hit the High Notes

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Heard on the Street: K-pop stocks have sold off after a scandal, but the sector still offers major opportunities

K-pop stocks have struck a bum note this week. Investors should still keep them in mind, as the country’s cultural output builds global popularity.

Companies involved in producing and selling Korean pop music have plunged since Lee Seung-hyun, a major star and member of the group Big Bang, was charged with involvement in a prostitution ring over the weekend. Two stocks—SM Entertainment and YG Entertainment—are down by more than 13% this week.

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