HYBE’s Entry into China and Partnership with Sony Music Accelerate K-Pop’s Global Expansion

K-Pop’s global expansion is accelerating. Entertainment company HYBE established its subsidiary HYBE China and sold 9.38% of SM Entertainment’s shares to China’s major music streaming giant Tencent Music Entertainment (TME) for approximately $177 million (about 247.7 billion won). This move reflects signs of economic recovery in the Chinese market. Previously, China had implemented the “hanhanryeong” policy—restrictions on Hallyu since early 2017—as retaliation for South Korea’s deployment of the THAAD missile defense system. It is estimated that this policy caused South Korea’s economy to suffer losses of around $16 billion (about 2.24 trillion won). Major agencies such as SM and JYP also had subsidiaries in China, but their actual activities faced many limitations. However, recent signs of improved relations between South Korea and China are changing the situation. In 2025, President Lee Jae-myeong emphasized the activation of cultural and economic exchanges with China in his inauguration speech, positioning K-Culture as a core element of national policy strategy. K-Pop creators are also increasingly expanding overseas. Music publishing company NewType NTY signed a comprehensive business agreement with global music publishing firm Sony Music Publishing (SMPK). This is the first agreement ever reached between a South Korean publisher and SMPK. The terms include collaborative work between producers and composers under NewType NTY and foreign musicians, official sponsorship of global auditions, and joint use of SMPK’s studios. Founded in 2014, NewType NTY has worked on albums for major K-Pop artists such as NCT127, Stray Kids, NMIXX, and RIIZE. Japan is currently regarded as the most stable market for K-Pop. Industry insiders state that “although the U.S. and Europe have large global markets, Southeast Asia and South America still have low purchasing power, and China carries the risk of being directly affected by government policies,” adding that “at this point, Japan is the only market offering stable revenue.” 2025 marks the 60th anniversary of normalization of relations between South Korea and Japan, and since over 30% of K-Pop’s sales come from the Japanese market, entering this market serves as the first step in global expansion. Hallyu’s influence in Japan began to grow following former President Kim Dae-jung’s decision in 1998 to open up Japanese culture to foreign influences. In 2002, KBS drama “Winter Sonata” gained massive popularity among middle-aged women in Japan, sparking the “Yonsama” phenomenon. SM Entertainment’s BoA reached number one on Japan’s Oricon chart, further accelerating K-Pop’s entry into that market. Today, K-Pop has become part of everyday Japanese culture. Notably, at a fan meeting at Tokyo Dome in June 2024, NewJeans’ Hanni gained attention by covering the hit song “Aoi Shinko” by legendary Japanese idol Matsuda Seiko.