[Why Did K-pop Leave Korea] The Era of Selling Only Songs Is Over... K-pop Competes with Four Key Survival Strategies

Hybe Headquarters in Yongsan-gu, Seoul. Photo by Kang Jinhyung

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The global survival strategies of K-pop companies are undergoing a structural transformation. Moving away from the traditional model that relied on album sales and overseas tours, the industry is now diversifying its revenue streams around concerts, local production, platforms, and intellectual property (IP). The central focus of competition has shifted to how long companies can retain fans and how effectively they can convert this engagement into revenue.

According to the industry on April 28, concerts are currently the fastest-growing driver of results. Companies are securing cash in a short period by expanding world tours centered around artists with proven fandoms. JYP Entertainment is a prime example. In 2025, the company posted concert revenue of 188.9 billion won, with overseas sales in North America, Europe, and other regions increasing to 269 billion won. Concerts are not limited to ticket sales-they also extend into merchandise, advertising, and collaborations, allowing for rapid revenue turnover. However, a high dependence on specific artists makes the business vulnerable to disruptions or hiatuses.

In contrast, Hive is mitigating risk through "localization." To reduce reliance on a single artist following BTS, Hive is directly producing teams tailored to local markets. While this strategy is less advantageous for short-term profit generation, if successful, it can establish a supply structure that is not subject to the performance of any particular team. Recently, Hive has been expanding the K-pop system abroad by establishing overseas subsidiaries that handle everything from trainee scouting to content production, thereby widening the overall market.

Platforms have emerged as the foundation of the revenue structure. They transform fans from one-time consumers into "retained users." Hive's fan platform, Weverse, is a leading example. By combining community, commerce, and membership services for a global user base, the platform minimizes fan churn and creates a structure that sustains revenue regardless of the artists’ activity status. This is regarded as a mechanism that enhances business stability.

CJ ENM is taking things a step further by focusing on expanding the "platform ecosystem" itself. Centered on Mnet Plus, the company is organically linking survival auditions, KCON, and the MAMA Awards to broaden global fan connections. This model generates revenue based on traffic and user retention time, independent of individual artist performance, although the high cost of maintaining the platform is seen as a burden.

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YG Entertainment is focusing on expanding its intellectual property. Starting from music and concerts, the company is broadening its scope to include advertising, brand collaborations, video content, and character businesses, thereby transforming artist value into long-term assets. While this approach is efficient because it allows for revenue generation even after artists' activities, its scalability may be limited if the competitiveness of the initial artists is not strong enough.

Kakao Entertainment is creating another pillar by combining story IP with its platform. By connecting webtoons, web novels, dramas, and music, it has built a structure that circulates content, in an attempt to move away from a revenue model centered on specific singers. This is interpreted as a strategy to expand K-pop from an independent genre into a comprehensive content industry.

Ultimately, competition in the K-pop industry does not converge around a single pillar. Concerts, local production, platforms, and IP strategies function complementarily, with each company placing emphasis on different areas. The key is how companies design a balance between short-term profit and long-term stability.

Haejeong Ha, Chief Business Officer (CBO) of beMyFriends, stated, "The long-term growth of K-culture starts with the fundamentals of communicating with fans and providing quality content," adding, "The survival strategy for K-pop companies also hinges on how consistently they create reasons for fans to stay engaged and become repeat consumers."

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