HYBE Accelerates Entry into K-pop Market by Establishing Chinese Subsidiary

HYBE, South Korea’s largest K-pop company, established its first Chinese subsidiary, “HYBE China Co., Ltd.” in Beijing on April 2 to strengthen its presence there. This marks HYBE’s fourth overseas branch following those in Japan, the United States, and Latin America. Industry insiders note that HYBE’s move reflects an increasing likelihood that China will ease its years-long implicit ban on Korean entertainment. If China adjusts its policies toward K-pop, Korean companies are expected to experience significant growth in concert ticket sales, album sales, and merchandise distribution. Notably, HYBE’s entry into China coincides with BTS, its flagship group, preparing to reunite after its members complete military service. Signs of improving bilateral relations underpin HYBE’s decision to expand into China. Faced with weak domestic consumption and stalled trade negotiations between the two countries, China has begun lifting restrictions on Hallyu content. Following China’s announcement in November last year to waive visas for Koreans, South Korea revealed plans in March 2025 to offer similar visa-free access for Chinese visitors in the third quarter. HYBE’s Chinese subsidiary does not plan to debut new girl groups or boy bands initially; instead, it is expected to focus on supporting existing artists’ activities in China. This approach differs from past strategies that involved launching new groups such as &Team in Japan and Katseye in the United States. HYBE’s strategy is likely to strengthen connections between K-pop and its Chinese fans. Industry analysts predict that if K-pop gains broader recognition in China, usage of fan platforms like HYBE’s Weverse and Dear U Bubble, which facilitate messaging between fans and artists, will increase. HYBE has also sold its entire 9.38% stake in competitor SM Entertainment to Tencent Music Entertainment, China’s largest music streaming service, for approximately $180 million. Tencent and SM have additionally announced a new partnership to jointly produce new idol groups and organize performances in China. Whether K-pop’s return to China will proceed smoothly remains uncertain. The Korean group Epex canceled its concert in Fuzhou, scheduled for May 31, due to “local issues,” which had nearly made it the first concert by a pure Korean idol group on Chinese mainland soil since 2016. Experts analyze that if K-pop achieves wider acceptance in China, key revenue streams such as streaming, concerts, and fan content—unlike industries like semiconductors or automobiles—will not be affected by cross-border tariffs.