K-pop has become a global phenomenon, captivating audiences worldwide with its vibrant music, dynamic performances, and unique cultural elements. Its influence extends far beyond South Korea, reaching fans everywhere.
For instance, everything that K-pop stars wear, eat, or use—whether it’s a luxury item or an everyday product—becomes a must-have item for fans. Memes related to K-pop are created and spread mainly through social media.
However, K-pop’s share in the concert market, which is the most lucrative segment of the global music industry, remains minimal.
Additionally, with S. Korea facing a low birth rate, the potential for K-pop to generate significant revenue within the domestic market is dwindling as it primarily relies on younger fans.
Therefore, to appeal to the global market, the K-pop industry is incorporating more international members and creating more English lyrics, making it less ‘Korean,’ according to an analysis by Bloomberg.
The K-pop market is worth 12.7 trillion won (92 billion dollars) annually. Yet, compared to the global music market, which Morgan Stanley estimates to be around $130 billion, K-pop represents only a small portion.
In addition, the entertainment business has changed significantly. Over the past 15 years, global album sales have halved while areas such as concerts and streaming have grown.
K-pop’s presence in the concert and streaming markets is relatively small. The combined streaming revenue of South Korea’s four largest entertainment companies (HYBE, SM, YG, JYP) was about $40 million in 2023, just 0.2% of the global total ($19.3 billion dollars). K-pop’s album sales revenue stands at $90 million, which is only 1.7% of the global market ($5.1 billion).
Bloomberg noted that while K-pop stars have enormous fan bases, their share in the global music market remains small. This means that among the numerous K-pop groups, only a few, such as BTS and BLACKPINK, have enough fans to fill large stadiums in Europe and the U.S. with high ticket prices, while other groups are not yet competitive on the international stage.
Therefore, the K-pop industry is shifting its strategy, primarily due to South Korea’s aging population, which reduces the potential for profit in the S. Korean market.
Bloomberg explained that K-pop is consciously trying to be less Korean to appeal to the global market. They noted that an analysis of songs from groups currently or formerly affiliated with the largest Korean entertainment companies reveals that more than half of the K-pop songs released this year have English lyrics.
Furthermore, major K-pop figures have stated that K-pop needs to evolve to continue its growth. Bang Si-hyuk, the founder of HYBE, has consistently emphasized this point, saying, “We need to take the ‘K’ out of K-pop,” meaning it needs to reach a broader market and audience. A prime example is HYBE’s U.S.-based girl group KATSEYE, which debuted in June.
KATSEYE is a girl group composed of six members, selected from 20 participants out of 120,000 applicants in the global audition program “Dream Academy.”
The members are from Singapore, Switzerland, the U.S., with only one Korean member. KATSEYE is based in the U.S. and performs in English, not Korean. SM Entertainment also plans to debut an idol group primarily composed of Westerners for the first time this year.
Bloomberg noted that these changes raise important questions about what K-pop truly is and why it has garnered such passionate international fans. They questioned whether the appeal lies in the catchy lyrics or the unique Korean language and culture, and whether K-pop will still attract global fans if these elements change.
