K-POP Agencies Shifting Focus to Southeast Asia to Avoid China Risks

K-POP agencies are making significant changes to their strategies for entering global markets. As various risks have led to a reduction in member compositions centered around Chinese nationals, which were once essential for targeting the Chinese market, there is a growing trend of expanding recruitment from Southeast Asian countries. The rookie group Hearts2Hearts, debuted by SM Entertainment in February, includes Carmen from Indonesia. Born in 2006 and originally named Nioman Ayu Karmantia, Carmen was born in Bali. She is the first Indonesian idol to debut under one of the four major entertainment companies. The music video for the group’s debut song “The Chase” topped YouTube’s most popular rising videos list in Indonesia, reflecting intense interest in the group. SM Entertainment’s decision stems from various industry changes. The Chinese market, once at the center of Hallyu, has become increasingly unstable due to political speech controversies and China’s regulations restricting Hallyu content. A clear example of this is the successive departures of Chinese members from EXO under SM Entertainment. In contrast, Southeast Asia is being regarded as “the next China” and shows explosive growth potential. Consumption of K-POP content in Southeast Asian countries on global platforms such as YouTube and TikTok is surging, with Indonesia, the Philippines, and Thailand emerging as key overseas markets. According to data from music and entertainment analytics company Luminate, last year Indonesia ranked third among countries that imported Korean music, behind Japan and Taiwan, and has become a must-visit location for K-POP idol tours. Statistics from the Customs Service on album export values by country also support this trend, as Southeast Asian nations such as Thailand, Vietnam, the Philippines, and Indonesia consistently appear in the top 10 for album exports. This strategic shift in the K-POP industry is already evident in several groups. The number of artists from Thailand, the Philippines, Vietnam, and Indonesia has risen sharply over the past few years, including Hani, a Vietnamese member of HYBE’s girl group NewJeans, Lisa, a Thai member of BLACKPINK, Minnie, a Thai member of (G)I-DLE, Hanbin, a Thai member of TEMPEST, Kien, a Filipino member of A-COLD-WALL*, and Chiquita, a Filipino member of BABYMONSTER. These artists have played a crucial role in attracting fanbases in their respective countries. An industry insider analyzed this as a strategy by K-POP entertainment companies to ensure market stability by targeting Southeast Asia, where K-POP fanbases are large and strong, while also pursuing opportunities in North America. The insider added that in Indonesia, the mere presence of a local member tends to generate enthusiastic support, serving as a good example of Southeast Asia’s positive reception of K-POP. With the Chinese market remaining uncertain, Southeast Asia appears to be emerging as a new driver of growth for K-POP agencies.