K-POP Expands Industry into Streaming, Casinos, and Musicals as Chinese Capital Increases Its Presence

K-POP is expanding its global economic influence by moving beyond the music industry to integrate with various sectors such as streaming, casinos, musicals, films, and webtoons. At the same time, the growing presence of Chinese capital in the Hallyu market is increasing tensions within South Korea’s domestic entertainment ecosystem. The growth of K-POP on streaming platforms is remarkable. According to Spotify Korea, K-POP streaming volume increased by 470 times between 2014 and 2024. In the United States, it rose by an average of 90% annually, while in Southeast Asia, it increased by 98%. Last year, Korean music was streamed a total of 9.7 million hours worldwide. The royalties paid to Korean artists by Spotify increased by 12% compared to the previous year and are three times higher than those in 2019. Park Jung-ju, the music manager at Spotify Korea, emphasized that “K-POP’s potential is still infinite, and we are only at the beginning.” K-POP is also being utilized in the marketing strategies of the casino industry. Traditionally, casinos have attracted mature customers through games and luxurious experiences, but now they are leveraging the emotional connections created by K-POP to target younger audiences. Through brand experiences such as background music in lounges, theme-based pop-up spaces, and fan meetings, K-POP integrates into the atmosphere, helping casinos redefine themselves around lifestyle and entertainment experiences rather than just gaming. In particular, casinos in South Korea, the Philippines, and Macau are using K-POP as a cultural asset to attract foreign tourists, especially those from East Asia and Southeast Asia. K-POP’s influence is also evident in the musical industry. Actors formerly K-POP idols such as Kim Jun-soo from “Aladdin,” Ok Ju-hyun from “Marie Curie,” Woo Yeon from “Contact,” Lee Seo-young from “The Red Garden,” Inseong and Solbin from “Even If This Love Disappears from the World Tonight,” Jin-ho from “Bear the Musical,” Leo and Lee Chang-seop from “Memphis,” Choi Yu-jeong from “Broadway 42nd Street,” and Luna from “Mamma Mia!” are dominating musical stages. Four idol singers—Danny Ahn, Hui, Jonghyun, and Jaehan—appear in “Love Comes with the Rain,” while “Dream High” is a show musical centered on K-POP and performance, featuring a large cast of idol singers including Seven, Kim Dong-jun, Youngjae, Jinjin, Jang Dong-woo, Kang Seung-sik, Yoo Kwon, Im Se-jun, Kim Dong-hyun, Sunye, and Luna. Relying on their established fanbases, these idol singers exert strong ticket-selling power that determines the success of musicals. Production companies are expanding their potential audience by casting idols and have also succeeded in entering overseas markets such as Southeast Asia. The “second viewing” culture and the production and consumption of merchandise, characteristic of K-POP fandoms, are spreading to the musical industry as well, enhancing audience loyalty. Just as the musical “K-Pop” has been performed on Broadway, K-POP is recognized worldwide as an important theme in musicals. However, as K-POP takes the lead in the musical industry, some negative effects are emerging. There is a risk that reliance could increase on the popularity of individual actors, with focus shifting from artistic quality to flashy castings and visual effects. The industry emphasizes that to maintain sustained popularity, it is necessary to leverage K-POP’s appeal while delivering solid narratives and meaningful messages. Amid this growth in the K-POP market, Chinese capital is accelerating its entry. Tencent Music, China’s largest music streaming company, acquired 9.38% of SM Entertainment’s shares from HYBE last month, becoming the second-largest shareholder after Kakao and Kakao Entertainment. Its overall influence grows even further when accounting for shares held in various subsidiaries. After China’s government banned exclusive copyright control over music tracks in 2021, Tencent Music’s monthly active users continued to decline, prompting the company to seek solutions through collaborations with K-POP artists and monetizing fanbases. Tencent already holds 4.3% of YG Entertainment’s shares and has established partnerships with JYP Entertainment to strengthen its presence in the Hallyu market. Chinese retail giant Suning still owns 22% of FNC Entertainment’s shares, while Chinese entertainment group Huacheng Media holds 6.4% of Next Entertainment, a film investment and distribution company. ByteDance, the parent company of TikTok, invested a total of 48 billion won in webtoon platform Lejin Entertainment and its parent company Kidaari Studio, acquiring 5.7% of their shares. Tencent also holds 10.11% of JTBC Studio, making it the third-largest shareholder. This aggressive push by Chinese capital stems from the belief that K-POP and Hallyu content offer high global profitability. Yet, there are concerns that as key entertainment companies fall under Chinese control, the autonomy of the Hallyu ecosystem could weaken and profits could be drained overseas.