K-pop continues to target Western market due to no profits in SEA, strict rules in China, experts say
American and European markets are now prioritized by K-pop artists.
Now that the pandemic restrictions have been lifted in many countries, K-pop groups such as DKB, GHOST9, CIX, THE BOYZ, (G)I-DLE, Brave Girls, Golden Child are all touring overseas, most notably in North America. This is an attempt to expand their popularity in America and Europe, rather than just in Japan, China and Southeast Asia like in the past.
Industry experts told Joongang Ilbo that profits from overseas fandoms and concerts taking place in the Western market are much larger. Tickets for a K-pop concert in Germany cost from 68 euros (~90,000 KRW) to 328 euros (~440,000 KRW). K-pop album sales in the US also increased by 17.2% last year.
BTS has made a significant contribution in opening the door for K-pop to enter the US. The group was nominated for a Grammy and sold out concerts in large stadiums with the capacity of 50,000 ~ 70,000 seats. This year, TWICE also sold out 20,000 tickets for a US concert. Stray Kids and SEVENTEEN have also gained many remarkable achievements outside of Asia.
Currently, top groups such as BTS, BLACKPINK, TWICE, NCT 127, SEVENTEEN, Stray Kids,… all target Billboard charts more than domestic digital charts by releasing new music on Fridays. In 2020, the number of Korean artists debuting on Billboard Hot 100 also skyrocketed from 5 to 17.
Industry insiders added that from now on, the Hallyu wave will no longer target the Chinese and Southeast Asian markets as traditionally. They believe entering the US will bring much higher profits. The performance revenue in the US music market ranks first in the world with 10.88 billion USD, 3.7 times higher than Japan ($2.97 billion) and 42 times higher than China ($258 million).
An industry official said, “10 years ago, when JYP entered the US music market and sadly returned, targeting Western countries was an unthinkable dream. But nowadays, everyone thinks that it is possible. They believe Southeast Asia has become a non-profitable region, and China has too many strict regulations. The market has changed 180 degrees.”
