Netflix Squid Game Season 2 Debut Impacts South Korean Entertainment Stocks

The highly anticipated release of Season 2 of Netflix’s Squid Game, which premiered on December 26, 2024, has led to a sharp decline in the shares of several South Korean entertainment companies tied to the series.

Stock Market Impact

On Friday, the fallout from mixed reviews of the new season caused significant losses in the stock market:

• Artist United Inc., a movie distribution and marketing company in which lead actor Lee Jung-jae is a major shareholder, dropped by the daily limit of 30%.
• Wysiwyg Studios Co., an investor in Artist United, saw its shares fall as much as 25%.
• Dexter Studios Co., a Netflix partner in South Korea, experienced a 24% decline.

Squid Game’s Legacy and Season 2 Reception

The first season of Squid Game, released in 2021, was a groundbreaking global success. It became the most-watched title on Netflix across continents, earning critical acclaim and becoming the first foreign-language series nominated for Best Drama at the Emmy Awards. This initial success significantly boosted the stock prices of companies involved in the series’ production and marketing.

However, expectations for Season 2, which hinted at a broader narrative scale, seem to have dampened after its release.

Critical and Viewer Feedback

• On Rotten Tomatoes, the new season holds an 85% approval rating from critics and 65% from viewers, reflecting a somewhat lukewarm reception.
• The New York Times review criticized the series, stating, “This season of Squid Game hints at larger-scale ambitions but does little to pursue them,” and mentioned that the narrative “stalls.”

Looking Ahead: Season 3

Despite the challenges faced by Season 2, the third and final season of Squid Game is set for release in 2025. Fans and stakeholders will be watching closely to see if it can reignite the spark that made the original season a cultural phenomenon.

The mixed reception of Squid Game Season 2 has dampened the optimism that previously surrounded the series and its associated South Korean companies. While the franchise remains a major cultural force, the pressure is now on Netflix and its creators to deliver a compelling finale in 2025 to solidify its legacy.