Company of Psy`s father reaps stock windfall thanks to hit song

Company of Psy`s father reaps stock windfall thanks to hit song. October. 13, 2012 05:07. balgun@donga.com.

While the stocks with the theme of presidential candidates are taking a break to get their breath back, that of semiconductor equipment maker DI has broken records day after day since its CEO is the father of rapper Psy, whose hit “Gangnam Style” has gone viral globally.

DI`s stock price climbed by 1,460 won (1.31 U.S. dollars), or 14.7 percent, Friday to close at 11,400 won (10.27 dollars). Trading of DI stocks was halted Thursday after the Korea Exchange listed the share as a dangerous item for investment due to the rapid price rise. On Friday, however, the price of the stock hit the ceiling once again and its trade ended seven minutes after the market opened.

DI`s stock began soaring after it became known that the company’s major shareholder and CEO Park Won-ho was Psy`s father. The price has continued breaking the daily upper limit since Sept. 20, rising from 2,400 won (2.16 dollars) Sept. 20. It has shot up a whopping 380 percent in about 20 days and continues hitting the ceiling each day.

Trading of the stock was halted Oct. 4th as well, but the stock continued to reach the upper limit every day for six days after trading was resumed.

Psy’s “Gangnam Style” remained at No. 2 on the Billboard Hot 100 of the U.S. for three consecutive weeks and topped the music charts in China. The global population of Psy seems to have pushed up the stock price of his father’s company.

The Korea Exchange called the rapid rise of DI`s share price unusual and is investigating if trading was manipulated by scammers.