In K-Pop’s Quest for Global Growth, Korean Fans Feel Cast Aside

Before K-pop grew into a multibillion-dollar cultural juggernaut, labels were funded by individual producers. Mr. Lee, a former folk singer, started SM Entertainment in the 1990s with the equivalent of about $38,000. Other powerhouses in the industry, like YG and JYP, had similarly humble beginnings.

In the following decades, the companies courted investors and sold shares to the public. Eventually Kakao and Naver, another big South Korean tech company, also started backing music and video ventures, in part to reach customers overseas.

Among K-pop labels, Hybe has been one of the most successful abroad. In 2021, it bought Ithaca Holdings, which manages Justin Bieber and Ariana Grande, for about $1 billion. In February, it acquired the Atlanta rap label Quality Control Music. These deals have helped Hybe more than double its sales, three-quarters of which now come from outside South Korea.

Overall, about 90 percent of all K-pop listeners live outside South Korea, according to K-Pop Radar, an industry tracker. And as the industry jostles for more fans overseas, some fans say the labels are no longer focusing on what made K-pop so successful.

“A hobby that was supposed to be fun became more of a source of worry,” said Kim Su-yeon, 19, a student in Seoul. “The changes have stressed me out.”

Article source: https://www.nytimes.com/2023/04/04/business/sm-entertainment-kakao-hybe-kpop.html