"Gangnam Style" causing a storm on the Seoul Stock Exchange

Shares of the company led by the father of South-Korean performer Park Jae Sang (Psy) have risen over 500% since July, as investors on the Seoul Stock Exchange are speculating that DI Corp., which produces electronic equipment, could somehow stand to gain from the success of the song "Gangnam Style". "Gangnam Style" satirizes the behavior of "rich people" in South Korea, and the choreography in the song's video includes a dance which mimics horse riding.

The clip gathered almost 500 million views on YouTube since its appearance, in mid-July, and its performer, Park Jae Sang became a worldwide star under the nickname Psy.

The performer's father, Park Won Ho, is the CEO of DI Corp., which manufactures semiconductor testing equipment. One of the company's customers is electronics giant Samsung Electronics.

A chart made by Bloomberg compares the increase in popularity of "Gangnam Style" with the evolution of the DI index. The company's market value increased in strict correlation with the number of Google searches and views gathered by Psy's song, as the shares rose from less than 2,000 Korean wons (USD 1.8) in July to over 11,000 Korean wons (USD 10) in October. Shares of DI Corp. are currently traded at approximately 8,000 Korean wons (7.2 dollars).

"Illogical bets that the firm would somehow benefit are driving up the shares. The ""Gangnam Style'' boom has created some thematic stocks",

an analyst at Hyundai Securities Co. in Seoul said for Bloomberg, quoted by Mediafax.

DI Corp. notes in a press release that the great rise of the stock is caused by speculation that DI would do business with Psy, given the family ties. No discussions have been made on a potential business with the chairman's son, the company said. Korea Exchange Inc. ordered trading in DI shares to be halted twice this month.

Another company which is riding the popularity of "Gangnam Style" is Hite Jinro, a South-Korean maker of distilled alcoholic drinks. The company's shares rose over 8% last week, after Psy drank a bottle of the company's drink during a concert attended by about 80,000 fans.

Shares of YG Entertainment, the company which manages the performer, rose 50% since the appearance of the song.