This correlation of rising star and related company recently occurred in the U.S., as Knicks player Jeremy Lin became — briefly — basketball’s darling. As Linsanity was born, Madison Square Garden’s (MSG) stock saw a lift. But as his fame declined, so did MSG.
Adding another layer to this stock story are news reports in South Korea that Park Won Ho’s friendship with presidential candidate Chung Woon Chan may have also helped D I shares.
Family activity as a factor in a business’s stock movement is more common with large corporations in Korea that have historically been family-owned and where a familial line of succession is clear. In that case, a company may be affected either positively or negatively by the actions of a child or other family member.
But the case with Psy and D I Corp is not the same. Cho says the impact of a family member would depend on the shareholding structure and is something that can be seen in cultures similar to Korea, such as Japan or Indonesia.