Billboard Is Just a Bystander... Japan Is K-pop's Main Revenue Hub

Bifurcated Strategy: Brand Building in the U.S., Profit Harvesting in Japan

Strength in Concert Infrastructure: Domes, Arenas, and Stadiums in Tandem

Revenue Streams Linked: From Tickets to Albums, Merchandise, and Fan Clubs

Twice is performing their sixth world tour 'THIS IS FOR' at the Tokyo National Stadium on April 25. Photo by JYP Entertainment

K-pop's "profitable stage" is shifting toward Japan. While the United States serves as a market for expanding global recognition and symbolic value, Japan has emerged as a key hub where concerts, album sales, and merchandise consumption are closely interlinked, resulting in tangible profits. As the focal point of the fandom economy moves toward live performances, Japan is solidifying its position as the most stable revenue market for the K-pop industry.

According to the music industry on May 11, major concert venues in the Tokyo area saw a steady influx of K-pop fans late last month. TVXQ performed at Nissan Stadium in Yokohama, aespa at Tokyo Dome, Twice at the Tokyo National Stadium, and Day6 at Keio Arena. K-pop artists spanning generations—from the second-generation TVXQ to the fourth-generation aespa—filled large Japanese venues, proving their local influence.

TVXQ, which debuted in Japan in 2005, continues to perform at Nissan Stadium two decades later. Their concerts on April 25 and 26 attracted a total of 130,000 people over two days. Since 2006, TVXQ has held 265 solo tours in Japan, with a cumulative audience of 6.31 million. Nissan Stadium, which can accommodate up to 75,000 people per event, is one of Japan’s largest venues.

Aespa is also rapidly scaling up in Japan. Last month, their concert at Kyocera Dome Osaka drew 76,000 fans, while 94,000 attended their Tokyo Dome show. The two dome concerts alone attracted a total of 170,000 people.

Twice’s presence is similarly overwhelming. Last month, they held a three-day concert at the Tokyo National Stadium, attracting 240,000 fans. Among all K-pop groups and international artists, Twice became the first ever to hold a solo concert at Japan’s National Stadium.

Japan is now expanding beyond concerts to become a consumption hub for K-culture as a whole. CJ ENM hosted "KCON JAPAN 2026" at Makuhari Messe in Chiba Prefecture from May 8 to 10. This year’s event evolved into a festival-style platform, with spaces to experience K-beauty, K-food, and K-content. Last year, the event at the same venue drew 110,000 visitors over three days, bringing the cumulative local attendance to over 2 million.

The greatest strength of the Japanese market is its scale. According to the International Federation of the Phonographic Industry (IFPI), as of 2025, Japan is the world's second-largest music market. The market grew 8.9% year-on-year. Notably, Japan is one of the most active countries in terms of physical album (CD) purchases. Unlike the U.S., where streaming dominates, in Japan, buying physical albums remains an indicator of fandom loyalty.

An executive at a major entertainment agency said, "In Japan, album and video sales account for a greater share of revenue than streaming, making it a highly profitable market. Another advantage is that repeated consumption by the fandom continues in a stable manner."

Japan’s robust concert infrastructure is also a key competitive edge. Major cities are home to large venues such as Tokyo Dome, Kyocera Dome Osaka, Vantelin Dome Nagoya, Fukuoka PayPay Dome, and Nissan Stadium, enabling stable tour operations. A proven growth model has also taken root, in which artists scale up from arena tours to domes and stadiums after confirming the size of their fandom.

In particular, Japan has a wealth of arena-sized venues that accommodate 10,000 to 30,000 people. According to the Japanese Ministry of Economy, Trade and Industry, arenas were the venue type that attracted the largest audiences last year. With around 30 arenas, Japan’s tiered venue structure, ranging from small clubs to domes and stadiums, supports both domestic and overseas tours.

In contrast, Korea has been continuously criticized for lacking concert infrastructure relative to the size of its K-pop market. Venues capable of accommodating over 10,000 people are limited to KSPO DOME (formerly the Olympic Gymnastics Arena) and Gocheok Sky Dome. Seoul World Cup Stadium is difficult to book due to turf management issues, and Jamsil Main Stadium is undergoing renovations. Additionally, sports schedules and weather conditions further limit the hosting of large-scale concerts.

A concert planner commented, "While domestic fandom demand is strong, the lack of suitable venues often forces artists to look abroad for tours. Touring in Japan is a practical solution to these limitations."

The financial sector is also paying attention to the importance of the Japanese market. According to a recent report by Goldman Sachs, artists from HYBE, JYP, and SM Entertainment account for about 7% of Japan’s live music market, and this share could double this year. Even with the weak yen, concert ticket prices have continued to rise, supporting ongoing revenue growth for entertainment companies.

Lee Kihoon, a researcher at Hana Securities, analyzed, "While U.S. tours are primarily an investment to boost global standing, Japanese tours serve as a cash cow, generating operating profit through strong audience numbers and merchandise sales. Whether an entertainment company has artists capable of dome tours has become a key metric in corporate valuation."

Kim Jinwoo, chief research fellow at Circle Chart, added, "The Japanese market exhibits a strong 'long-tail' characteristic, where once a fandom is formed, it is sustained over a long period. The combination of infrastructure and fandom culture that allows long-running artists to continue stadium concerts is establishing a stable profit model for K-pop."

This content was produced with the assistance of AI translation services.