Series of Essays from Professionals about the K-Pop Industry
This series of essays aims to convey the perspectives of K-pop industry professionals on the current ecology of K-pop. Originally published in the newspaper "The JoongAng" in 2022, we have translated these articles into English for our readers. Enjoy these writings, which will provide you with insightful information about K-pop. The author, Ms. Yun Sun Mi, holds all copyright permissions and has authorized us to publish this on our website.
Sun Mi Yun’s "I am a K-Pop Idol Planner" (Part 2)
Recently, not only K-pop but also Korean content in general is garnering global attention. Interest in Korean content, be it films, dramas, music, or beauty, is on the rise, and it's noteworthy that the reach of the music industry has expanded beyond Southeast Asia to include the United States, South America, and the Middle East. While there are concerns about the widening gap between the rich and the poor in the content industry, the fact that the industry itself is gaining attention presents a great opportunity for all agencies.
The global success of the idol system has led to significant interest in the industry. Consequently, there's been an influx of capital looking for new investment opportunities. However, attracting large investments doesn't necessarily guarantee success. A combination of capital, manpower, time, and efficient management is essential for success, and even with all these elements, a 100% success rate is difficult to achieve. While larger capital can increase the probability of success, more than that is needed.
K-pop agencies are classified under the 'service industry,' specifically under arts, sports, and leisure services. The specifics vary depending on the agency, but typically include record planning, production, sales, agency services, entertainment management, promotions, and organizing events and performances. Some agencies also delve into app development, services, and publishing, depending on their business scope. According to the Korea Creative Content Agency, there were as many as 3,868 registered agencies (as of October 2021), which include not just singer management but also actors, variety shows, and performances.
In the past, singers (especially idols) venturing into acting or other fields were often viewed critically. However, now it's common to train artists from the beginning to be versatile in various activities. Singers may parallelly pursue acting or delve into it after establishing themselves in their music careers, and vice versa. Recently, the boundaries between different genres have become increasingly blurred.
So, how are these agencies established? There are mainly two ways. The first involves distribution companies or large corporations entering the entertainment business, where they invest substantial capital to create or expand subsidiaries if there's synergy with their existing business areas. The second way is through gathering investment funds, either through partial investment, joint investment by the CEO, or private investment (entrepreneurship).
Despite its glamorous exterior, the recording planning industry has only recently gained market trust and recognition as a part of the 'K-pop industry.' Among the numerous agencies, less than ten are publicly listed. HYBE is the only one listed on the Korea Composite Stock Price Index (KOSPI), and a few large record planning agencies like SM, JYP, YG, FNC, and Cube are on the KOSDAQ. This implies that while starting a company with investment might be easy, maintaining it and achieving recognized value or success takes a long time. Even if some results are achieved, establishing a brand requires significant capital, time, and effort.
While capital is important in this industry, having a lot of it doesn’t guarantee success. A group that releases an album and becomes popular this year may not retain its popularity the next year. In other words, the business is unpredictable, high-risk, and difficult to control. One might wonder why agencies still pursue this business. Like any other field, entertainment companies aim to generate profit. However, if profit were the sole objective, I would advise against starting an agency. This conclusion comes from my 15 years of experience observing agencies of various sizes and structures, from large and medium-sized to overseas and IT-related entertainment companies.
Of course, there are places driven solely by profit. However, most K-pop agency workers understand and cherish the value of intangible assets like music, related content, and artists. They have values and messages they want to convey through the attractive tool of cultural content, which sets them apart from other industries that sell products. This is the purpose and reason for the existence of agencies. Maintaining this initial intention while running a company is another issue.
Given the nature of the industry, there is a critical view that it operates on the premise of "doing business with people." Conversely, the fact that content is mediated through people is also its charm and has a significant cultural impact. In such companies, it's especially important to have a corporate culture where everyone, from leaders to junior employees, shares the company's goals and direction. Deciding what kind of content you want to create and what kind of leader you want to be sets the long-term direction. This long-term direction leads to better decisions and choices than setting short-term goals like 'raising idols to make money.' It also motivates artists to practice conscientiously and strive for self-improvement.
Unfortunately, the image of K-pop agencies portrayed in the media is often that of places that exploit young teenagers with unfair contracts and mass-produce idols like a factory. It's true that there was a time when such practices were necessary to survive in a fiercely competitive market. Like any other industry, there have been many ups and downs in establishing itself. I have also felt discomfort at the unscrupulous practices of some companies or individuals, and such issues still persist today.
However, I hope that the problems of a few do not lead to a generalized disparagement of the entire K-pop industry. Thankfully, with the success of BTS, there's been increased curiosity and interest in this industry. The effort to take a closer look is something I wholeheartedly welcome as an industry insider.
Original Article: https://www.joongang.co.kr/article/25077168
Author: Sun Mi (Irene) Yun
Sun Mi (Irene) Yun is a renowned figure in the K-pop industry, presently leading as the Head of the Music Business Department at Afun Interactive. Her robust career includes pivotal roles at FirstOne Entertainment, FNC, Lazin Korea, Danal Entertainment, and JYP Entertainment, marking her significant contribution to the industry.
As an accomplished author, Yun released "Big Hit Signal" in December 2020, offering a deep dive into the KPOP industry and Korean economics. The success led to a Japanese version and another book, "BIG HIT," in May 2022. Yun's expertise also spans to column writing. Since June 2022, she has been sharing her insights in "I Am an Idol Planner" in JoongAng Ilbo, and a marketing-focused column, "Three Perspectives on NewJeans," launched in October 2022.
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