K-Pop Entertainment Businesses become Giants of Industry

K-Pop entertainment business is busy.

In preparation for the IPO this year, many companies are making their moves. SM Entertainment's shocking drop in revenues in the third quarter report of 2012 is now in the back mirror as investors have turned around once again and looking to put their capital back into the promising business of entertainment. Let's take a closer look at what is to come and what it all means.

The stock market is watching. Who are the key players?

Fantasio is the hot topic among financial circles. With big-name celebrities like actor Ha Jung Woo, Joo Jin Mo and Jo Yoon Hee, Fantasio is readying for a stock market launch within this year.

Cube Entertainment is also gaining much attention as it is inches away from its IPO as well despite their failed initial attempt in recent months. In the film industry, NEW has been on a hot streak with consecutive mega hits in the box office with "Pieta", "Broken Arrow" and "Miracle in Cell No. 7." Experts predict that NEW will be the new challenger against the Roman Empire of CJ E&M.

From the corners to the center, entertainment business now in spotlight

Even as recent as a year ago, there were hardly any financial reports on entertainment businesses. Most researchers wrote them off as too small for substantial research. But with PSY's "Gangnam Style" showcasing the limitless potential of K-Pop wave, the entertainment industry underwent exponential growth and has asserted itself as a giant pillar of the industry.

Successful precedents set by SM and YG Entertainment are adding more momentum to what is already a rapid movement. SM was able to create a global industry with its aggressive marketing while YG also proved the world market to be a viable target for K-Pop industry.

2013 will likely be the first year in which a number of entertainment businesses enter the stock market and begin their expansion domestically as well as internationally. If the successful trend holds up, it is not far-fetched to imagine the entertainment business becoming one of the biggest industries in the nation in the near future.