S.Korea celebrity appears in Chinese ad in subtle sign of thawing diplomatic tension

YG Entertainment

13/11/2017 09:37

* S.Korean actress promotes cosmetics on Alibaba's Taobao 
mall 
    * S.Koreans vanished from Chinese ads during missile spat 
-exec 
    * S.Korean entertainment shares up on hope of earnings 
rebound 
 
    By Joyce Lee and Heekyong Yang 
    SEOUL, Nov 13 (Reuters) - A South Korean actress is 
promoting cosmetics on China's biggest online mall, in a subtle 
sign of easing diplomatic tension that has seen once-ubiquitous 
South Korean celebrities vanish from Chinese marketing 
campaigns. 
    Jun Ji-hyun, who has played the lead roles in hit movies and 
dramas such as 2013's "My Love from the Star," featured 
prominently on Monday on the product page of health goods maker 
Mentholatum on Alibaba Group Holding Ltd's  BABA.N  Taobao.com. 
    Jun's appearance comes toward the end of a year in which 
South Korea's entertainment industry suffered a drop in Chinese 
demand for South Korean cultural exports. The drop came as 
Beijing objected to Seoul's use of a U.S. anti-missile system, 
prompting popular anti-South Korean sentiment in China. 
 urn:newsml:reuters.com:*:nL4N1N643M 
    South Korean celebrities soon reported being unable to 
attend promotional events and having work visa applications 
delayed, officials at South Korean talent agencies told Reuters. 
    "Chinese TV ads featuring South Korean celebrities were 
suddenly dropped and new ones aired with Chinese celebrities," 
said a director of a South Korean talent agency, declining to be 
identified due to the sensitivity of the matter. 
    Chinese foreign ministry spokesman Geng Shuang, at a regular 
briefing on Monday, said he was not aware of any restrictions on 
South Korean cultural exports, and that "China will work hard 
with South Korea to promote the early return to the correct and 
healthy track of bilateral exchanges and cooperation." 
    Mentholatum's Asia-Pacific headquarters did not have an 
immediate comment. Alibaba could not be immediately reached. 
    In late October, Beijing and Seoul agreed to move beyond 
their year-long stand-off over the missile issue. 
    "We haven't seen any immediate tangible change, but we hope 
the agreement will have a positive impact on future cultural 
exchange," South Korean entertainment and media firm CJ E&M Corp 
 130960.KQ  told Reuters. 
    The impact of the stand-off has been deep. K-Pop agency YG 
Entertainment Inc  122870.KQ  has not scheduled any concerts in 
China since July 2016. In its most recent earnings report, it 
said July-September operating profit fell 88 percent. 
    Peer S.M. Entertainment Co  041510.KQ  has also not 
scheduled a concert in China since September 2016. Its latest 
earnings showed a 61 percent profit drop for January-June. 
    But analysts expect the agreement ending the stand-off to 
see earnings at entertainment firms begin to recover from as 
soon as early 2018.  urn:newsml:reuters.com:*:nL3N1NE1MN 
    Reflecting that expectation, shares of CJ E&M rose 5.6 
percent on Monday, while S.M. was up 3.9 percent and YG was 6.1 
percent higher. The benchmark Kospi index  .KS11  fell 0.5 
percent. 
 
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China, S.Korea agree to mend ties after THAAD standoff    
 urn:newsml:reuters.com:*:nL4N1N643M 
S.Korean firms woo China's Singles Day shoppers as detente 
boosts hopes     urn:newsml:reuters.com:*:nL3N1NE1MN 
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 (Reporting by Joyce Lee and Heekyong Yang; Additional reporting 
by Christine Kim and Ben Blanchard; Editing by Christopher 
Cushing) 
 ((jungyoon.lee@thomsonreuters.com; +82 2 3704 5609; Reuters 
Messaging: jungyoon.lee.thomsonreuters.com@reuters.net)) 
 
Keywords: SOUTHKOREA CHINA/ENTERTAINMENT