[Stock market chart. Photo Credit to Pexels]

The highly anticipated release of "Squid Game" Season 2 on Netflix has caused a dramatic downturn in the South Korean stock market, with shares in companies associated with the global phenomenon falling. 

This market reaction contrasted with the excitement surrounding the first season's release in 2021, which drove connected stocks to record heights.

Stocks in companies linked to the series fell significantly on December 27, 2024, only one day after the second season premiered. 

The advertising and marketing company Artist United, where series star Lee Jung-jae holds a significant stake, saw its shares plummet by nearly 30%, hitting the daily limit down. 

Similarly, Artist Studio, a company connected to Lee that manages prominent Korean actors and has been involved in content production, suffered a 29.84% drop in shares.

The ripple effect extended beyond the show's direct circle, as visual effects companies involved in the production were not spared. 

Wysiwyg Studios and Dexter Studios experienced stock declines of 25.31% and 24.08%, respectively. 

Furthermore, Showbox, an investor in the series' production firm, saw its shares fall by 19.16%.

This market reaction has left many industry analysts perplexed. 

After all, the original "Squid Game" had become a global sensation, with 265.2 million views in its first 13 weeks and an estimated economic return of over 1 trillion KRW for Netflix. 

Several factors contribute to the market's conflicting response, the most notable  being the new season's lukewarm critical reception. 

Stocks that had previously profited from "Squid Game"'s popularity appear to have dropped as consequent to this critical consensus, which has dampened  investor enthusiasm.

The market's reaction stresses the volatile nature of entertainment-related investments, where earnings shift as quickly as consumer preferences.

However, it's worth noting that not all reviews have been negative. 

The Times awarded the second season four stars, commending its "deliberate and thoughtful pacing, paired with glimpses of light amid the gruesome darkness".

The mixed reactions illustrate the challenging standard established by the first season, which remains Netflix's most-watched series to date. 

Despite the stock market's immediate reaction, it's too early to write off "Squid Game 2" entirely. 

Prior to its premiere, the series received a Golden Globe nomination for Best TV Drama, suggesting that industry insiders continue to see promise in the brand.

Moreover, the true test of the season's success will likely come in the weeks ahead, as global viewership numbers start to roll in. 

Netflix's vast subscriber base, which has grown significantly since the first season's release, could still propel the show to impressive numbers, even if it falls short of its predecessor's record-breaking performance.

As the initial market reaction settles, investors await Netflix's viewership data and news about the newly released show and "Squid Game 3," set for 2025. 

The next few weeks will determine if this market dip is temporary or signals a shift in Korean entertainment's global reach.

Despite market fluctuations, the Squid Game brand’s international impact consolidates South Korea's status as an influential force in the streaming sector.