Shares in The Pinkfong Company, the South Korean studio behind the wildly popular “Baby Shark,” saw a dramatic surge of as much as 60 percent on its market debut in Seoul. The event marked a significant milestone for the entertainment firm known for creating some of the most engaging content for children.
“Baby Shark Dance,” a cheerful tune that introduces an adorable shark family, has garnered an astounding 16 billion views on YouTube, making it the most-viewed video on the platform. The video’s popularity dwarfs the second-place contender, “Despacito,” which is viewed as a cultural phenomenon in its own right. The catchy franchise, which has become a mainstay in children’s entertainment, even made its way into pop culture with a balloon tribute featured in the Macy’s Thanksgiving Day Parade in New York City in 2022.
During morning trading on the day of its initial public offering, The Pinkfong Company’s shares opened at 38,000 won (approximately $26) and quickly climbed approximately 17 percent beyond that initial price. The initial excitement saw shares escalating over 60 percent at their peak, reflecting a strong demand for this IPO. Choi Jong-kyung, an analyst at Heungkuk Securities, explained that the rise was a typical reaction for newly listed companies, asserting that a gain of 30 to 40 percent on the first trading day is standard.
The Pinkfong Company, founded in 2010, has built a robust business model primarily centered around content sales, both online and for live performances. Last year, the firm reported revenue of 97.4 billion won, marking an 11 percent growth, and its operating profit soared to 18.8 billion won, nearly quadrupling from the previous year. CEO Kim Min-seok highlighted the company’s effective revenue-generating structure, crediting their ability to recoup production costs through proprietary channels like YouTube and various apps. This approach minimizes the company’s reliance on external distributors and reduces variable costs.
South Korea continues to solidify its reputation as a global cultural powerhouse, being the home of widespread phenomena such as the K-pop sensation BTS and Netflix hits like “Squid Game” and “KPop Demon Hunters.” The enormous popularity of “Baby Shark” not only reflects the global influence of Korean entertainment but also underscores the changing landscape of children’s media consumption.
