K-pop Agencies Shift Focus to Recruiting Southeast Asian Members to Avoid China Market Risks

The global strategy of the K-pop industry is undergoing significant changes. The importance of including Chinese members, which was once essential, has declined, with Southeast Asian members rapidly filling that role. In the past, Chinese members were a crucial element for K-pop idol groups aiming to penetrate the massive Chinese market. However, political controversies involving Chinese members’ remarks combined with China’s restrictions on Korean culture, known as the Hanbanryeong, have increased instability in that market. SM Entertainment’s difficulties following the successive departures of EXO’s Chinese members serve as a clear example of the risks associated with Chinese members. As these risks in the Chinese market became more apparent, Southeast Asia emerged as a new market that agencies turned their attention to. Often referred to as the “next China,” Southeast Asia shows tremendous potential for growth. Consumption of K-pop content across global platforms such as YouTube and TikTok is rising sharply in Southeast Asian countries, with Indonesia, the Philippines, and Thailand emerging as key overseas markets for K-pop. This shift is confirmed by concrete data. According to Luminate, a company that analyzes the music and entertainment industry, last year Indonesia ranked third among countries that imported Korean music, behind Japan and Taiwan. In terms of album export values by customs authorities, Southeast Asian countries such as Thailand, Vietnam, the Philippines, and Indonesia consistently make it into the top 10. Major agencies are now actively recruiting Southeast Asian members. SM Entertainment’s new girl group Hearts2Hearts includes Indonesian member Carmen, marking the first time an Indonesian has debuted under one of the four major agencies. The music video for their debut song “The Chase” topped Indonesia’s list of most popular videos. Prior to Carmen in Hearts2Hearts, other Indonesian K-pop idols such as SECRET NUMBER’s Dita, VVUP’s Kim, and Beautybox’s Via had already appeared. Artists from Thailand, the Philippines, and Vietnam, including NewJeans’ Vietnamese member Hani from HYBE, BLACKPINK’s Lisa, (G)I-DLE’s Minnie, TEMPEST’s Hanbin, and BABYMONSTER’s Chiquita, have also increased in number. These artists have played a significant role in attracting fans in Southeast Asia. An industry insider analyzed the trend by saying, “K-pop entertainment aims to ensure stability by targeting both North America and Southeast Asia simultaneously, serving as a substitute for the unstable Chinese market.” They added, “In Indonesia, just having a member from that country results in enthusiastic support, demonstrating how well that nation embraces K-pop culture.” Meanwhile, the K-pop industry is evolving toward a more sustainable structure. Although physical album sales declined after reaching 110 million units in 2023, this is considered a temporary drop caused by a reduction in forced album sales practices. The industry views this as evidence that the K-pop industry is becoming a healthier and more valuable market.