'Busan Shark' Sighting Sends 'Baby Shark' Stock Soaring Over 10%...How Far Can Meme Stocks Go?

The Pinkfong Company rises over 10% in pre-market trading
Hyein, Noroo, Geumyang... How the stock market moves with names

As a shark measuring more than 3 meters made its appearance for the third consecutive day in the heart of Busan, drawing nationwide attention, shares of The Pinkfong Company—holder of the 'Baby Shark' intellectual property (IP)—unexpectedly surged. The connection through the word 'shark' attracted some investors' interest in a joking manner. Once again, a societal issue unrelated to a company's performance or business spreads as a thematic stock trend online, riding the wave of memes circulating on the internet.

Citizens capturing a shark that appeared in the waterway of Busan Port North Port Waterfront Park in Dong-gu, Busan on the 20th (left) and the Baby Shark image from The Pinkfong Company.
Photo by Yonhap News Agency · The Pinkfong Company

The Pinkfong Company, a KOSDAQ-listed company, climbed to 13,380 won in the pre-market at 8:45 a.m. on the 21st, up 1,280 won (10.58%) from the previous trading day. At one point during pre-market hours, shares soared to 14,280 won. The upward trend continued after the regular market opened. As of 9:30 a.m., the stock was trading at 12,970 won, an increase of 870 won (7.19%) from the previous trading day.

'Baby Shark' shares also surge as a real shark appears

From September 18 to 20, a shark measuring 3 to 4 meters was spotted for three consecutive days at North Harbor Waterfront Park in Dong-gu, Busan—becoming a hot topic. Various social media platforms and online communities saw videos and photos of the sightings posted one after another, and as hundreds of citizens flocked to the location to witness the shark, nearby businesses experienced what is being called a 'shark boom.'

With the real-life shark sightings, 'Baby Shark' was invoked in the stock market. As The Pinkfong Company's shares jumped, online stock forums filled with jokes such as, “Is this a shark-themed stock?”, “Will the price drop once the shark goes home?”, and “I hope the shark keeps showing up.”

On the 20th, citizens are waiting to watch a shark that lost its way and has been appearing for three days in the waterway of Busan Port North Harbor Waterfront Park in Dong-gu, Busan. Photo by Yonhap News

The Pinkfong Company’s "Shark Family" topped YouTube’s view count and became a globally popular IP. On Spotify, the world's largest music streaming platform, the song surpassed 1 billion cumulative streams, earning a place on the Spotify playlist 'Billions Club.' In 2019, it entered the U.S. Billboard Hot 100 main singles chart at No. 32 and stayed on the chart for 20 consecutive weeks. In 2024, it ranked No. 1 on the UK Official Charts' list of “Most Streamed Music Videos of All Time.” 

Even just sharing a name can cause a boom…What are 'meme stocks'?

In Korea’s stock market, shares sometimes rise as thematic stocks when a company’s name or a specific word overlaps with a social issue, even if there is no direct relationship to the company’s business or earnings.

Recently, when Yong Hyein, a lawmaker from the Basic Income Party, was nominated as Minister of Gender Equality and Family, a listed company called Hyein was mentioned online as a so-called “Yong Hyein-themed stock.” Even though Hyein has no shareholder or business connection with the nominee, posts linking the politician’s issue to the company’s stock spread solely due to the name similarity.

The case of typhoon names crossing over to stock tickers has also occurred. In 2017, when Typhoon Noru moved towards the Korean Peninsula, the share price of Noroo Paint soared from 8,410 won to 14,000 won—an increase of 66.46% over four trading days.

There are also cases where similarity in company names sparks buying activity. In 2024, after news broke that Geumyang was developing its ‘4695 battery,’ shares of Geumyang Green Power, a company with a similar name, rose over 24% in two trading days.

"Korea is the world's most challenging market for investors"...Declining credibility pointed out as well

Experts point out that this phenomenon is closely related to Korea’s stock market environment, where information is shared in real-time through social media and online communities. When lighthearted jokes or everyday issues go viral online, they can quickly prompt stock searches and actual trades, creating a situation where short-term supply and demand distorts share prices regardless of a company’s underlying value.

Those in the securities industry refer to this with a note of self-mockery, saying, “Korea is the world’s most challenging market for investors.” They criticize the persistent distortion—where, despite there being no business link, a trending issue and a rush of investors can cause a stock price to soar in a short time—for undermining the overall credibility of the Korean stock market.

This content was produced with the assistance of AI translation services.