Stock Bubbles, Gangnam Style

Moneybox
A blog about business and economics.
Oct. 12 2012 3:16 PM

Stock Bubbles, Gangnam Style

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Why is South Korean semiconductor manufacturer DI seeing its share prices surge? Is it a key supplier for the forthcoming iPad Mini? An integral element of Samsung's next great smartphone? Nope. It's surging because its chairman and main shareholder is Park Won-ho, father of Park Jae-sang, a.k.a. PSY, a.k.a. the "Gangnam Style" guy.

Why a family link to a viral video sensation should help this company is difficult to say, but apparently this kind of theme stock surge is a not-uncommon phenomenon in the Korean equity markets. South Korea, I would note, is one of the most recently affluent countries around so it's simply possible that the Koreans markets haven't had enough "learning" to avoid fast-rising momentum bubbles.

Matthew Yglesias is the executive editor of Vox and author of The Rent Is Too Damn High.

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