A four-member virtual girl group, IXIA, is set to debut in the first half of this year, attracting attention as the first virtual idol project from Megameta Entertainment CEO Na Byeong-jun, the founder of Fantagio, known for discovering actors Cha Eun-woo, Seo Kang-jun, and Ha Jung-woo.
Virtual idols are digital performers who exist in cyberspace. While real-life artists provide the vocals and motion, virtual reality (VR) characters take the stage and interact with audiences.
The entertainment industry is ramping up its investment in virtual idols. In July 2023, Supertone, a subsidiary of South Korea’s largest entertainment company HYBE, introduced the virtual girl group SYNDI8. Two months later, SM Entertainment debuted its virtual solo artist nævis, or naevis with her first single. But what’s fueling the entertainment industry’s rush into virtual idols?
The biggest factor is their proven profitability. While virtual idols require high initial development costs, they significantly cut ongoing expenses like training, housing, and wardrobe—key costs for managing traditional idols. Pop culture critic Kim Sung-soo explains, “Even when traditional idols succeed, entertainment companies must improve contract terms accordingly, which gradually eats into their profit margins.”
Another strength of virtual idols is that they are relatively free from the biggest risks in the idol industry such as dating rumors or school bullying scandals. While real performers operate behind virtual characters, they are far less likely to get caught up in controversies compared to traditional idols who appear directly in public.
When idols become embroiled in scandals, their agencies can suffer financial blows, including stock price drops. The more popular the idol, the greater the impact. When SM Entertainment’s aespa member Karina’s dating news broke, the company’s stock plummeted, wiping out over 66 billion won in market value in a single day. HYBE also faced controversy when a Le Sserafim member was accused of school bullying right after debut. Kim added, “Virtual idols offer a stable investment with minimal risk.”
The growing acceptance of artificial intelligence (AI) in daily life, with tools like ChatGPT becoming mainstream, has lowered psychological barriers to virtual idols. In 1998, the virtual artist Adam debuted as Korea’s first cyber singer, but failed to gain success due to awkward character movements and an unconvincing concept that did not resonate with the public.
However, with recent advancements in character creation technology and the widespread use of AI and smartphones, virtual idols are now more readily accepted by the younger generation, particularly Gen Zalpha, those born from the mid-1990s to early 2010s.
With increasing popularity, virtual idols are achieving greater success. PLAVE, a five-member group that debuted in February 2023, attracted over 70,000 concurrent users during the presale of their first solo concert tickets in April 2024, selling out all seats. Similarly, Isegye Idol, which pioneered the virtual idol market in 2021, achieved immediate success, debuting at 36th on Melon and topping the Bugs and Gaon Chart download sections.
According to U.S. market researcher Allied Market Research, the global virtual human market is expected to grow from $43.3 billion in 2023 to $1.827 trillion by 2033.
