China Signals End to 10-Year Hallyu Ban…K-pop Market Set to Open Up

China is showing signs of lifting the nearly 10-year-long restriction on Hallyu culture known as the Hanhanryeong. K-pop albums have returned to shelves in Chinese bookstores, and a local remake of the Korean drama “My Mister” has been released on Chinese streaming platforms.

The Hanhanryeong was a restriction imposed by the Chinese government following South Korea’s deployment of the U.S.-made THAAD missile defense system in 2016. Although the Chinese government made no official announcement, it functioned as a broad informal ban on all Korean cultural content, including music, television dramas, and films. In particular, the prohibition on K-pop artists performing in China dealt a severe blow to the Hallyu industry, effectively closing what had once been a crucial source of overseas revenue.

A turning point came from recent remarks by Chinese President Xi Jinping. During his summit meeting with South Korean President Lee Jun-seok, Xi used the metaphor that “ice does not melt all at once when it thaws by three inches, and fruits ripen and fall when the time is right” to imply a gradual approach to lifting the Hanhanryeong. While this may have political and diplomatic underpinnings, the industry interprets it as a signal of change.

South Korea’s three major entertainment companies are responding swiftly to this signal. YG Entertainment has been operating its venture investment firm, YG Investment, since 2016. It established five new funds in the first half of 2024 alone, with assets under management amounting to approximately 200 billion won. SM Entertainment launched SM Culture Partners in 2022 and obtained a venture investment license in March 2025, having invested in 16 companies to date. JYP Entertainment founded JYP Partners in 2023 and secured a license as a new technology finance company in 2024.

The investment activities of these three companies are expanding beyond traditional music and performance businesses into platforms, content, and new technology sectors. This is viewed as a diversification strategy to prepare for a return to the Chinese market. An industry insider predicted, “Since the Chinese government has never officially declared an end to the Hanhanryeong, any gradual lifting will also proceed quietly. However, the possibility of K-pop performances resuming seems likely to become a reality soon.”