"It Costs 10 Billion Won": The Crisis Facing K-Pop and the Future of 'Small Agency Miracles'

[Anchor]

Despite the global popularity of K-pop, there is growing concern about a crisis within the popular music industry. Many argue that it has become increasingly difficult for small and medium-sized agencies to produce the "next BTS." The government has now stepped in to devise countermeasures.

Reporter Kim Gyeong-hui has the story.

[Reporter]

P1Harmony is a group in its sixth year since debut, enjoying significant popularity in the global music market.

Their ninth mini-album reached number 4 on the main Billboard album chart this past March.

ATEEZ, now in their eighth year, saw their new album debut at number 1 on the Billboard main album chart last week, marking their third time reaching the top spot.

Such achievements are rare in the current K-pop market.

Of the 14 K-pop groups that have reached the top 5 on the Billboard album chart, P1Harmony and ATEEZ are the only ones not affiliated with the four major entertainment agencies.

Industry insiders say that soaring production costs and intensifying capital competition have made it difficult for smaller agencies to cultivate the "next BTS."

[Woo Seung-hyun / Chairman of the Korea Music Industry Association: It is common to hear in the industry that it costs 10 billion won to create an idol group and get them on track. Because of this high-cost environment...]

With even the number of new artists entering domestic charts on the decline, a red light has turned on for the future of K-pop.

[Choi Hwi-yeong / Minister of Culture, Sports and Tourism: I think we are at a point where people are starting to question how long this momentum can be sustained.]

Proposed measures to protect small and medium-sized agencies, which serve as the backbone of K-pop, include support funds and the introduction of tax credits for production costs.

[Kim Jin-woo / CEO of RBW: There are continuous releases of content support funds, such as mother funds or growth funds. However, K-pop is not a primary objective. Movies are included, and so are games.]

High rental fees for local concert venues, which are sometimes more expensive than those in Seoul, and a lack of performance infrastructure are also cited as issues that must be resolved for the continued growth of K-pop.

The government has selected 10 teams, including the group RESCENE, for its newly established overseas expansion support project for small and medium-sized agencies this year. It announced plans to double the scale of support starting next year and to discuss production cost tax credits with financial authorities.

(Video Editing: Kim Jong-tae, Design: Kim Ye-ji, VJ: Oh Se-gwan, Video Source: FNC entertainment, KQ ENTERTAINMENT, The Muze Entertainment, GREATM ENTERTAINMENT)
※ Please note: This article was translated by AI and may contain errors.