K-Pop Export Value Surged Fourfold in 10 Years as Global Mainstreaming Accelerates

The K-Pop industry is accelerating its global expansion. According to the Ministry of Culture, Sports and Tourism, K-Pop export value reached $1.22253 billion in 2023, representing more than four times the figure of $277.32 million recorded in 2013. While there are observations suggesting declining domestic popularity, there is an assessment that its international appeal is actually expanding. K-Pop’s performance on overseas charts has improved, with more groups achieving strong results on Billboard charts. In 2023, the “mid-sized” agency girl group FIFTY FIFTY scored by reaching position 25 on the Billboard Hot 100, while multiple groups including TWICE, NewJeans, LE SSERAFIM, ILLIT, ATEEZ, and STRAY KIZ also made it onto the charts. The recent global hit “APT.” by Rosé and the success of the OST for the film KPop Demon Hunters also fall within this trend. As expectations for the lifting of the Hanban ban (China’s restrictions on Korean culture) grow, potential market entry into China is gaining attention. Daishin Securities analyzed that if the ban is lifted, resumed performances and restored album sales could lead to increased operating profits for the four major entertainment companies by 2026—HYBE by 95.2 billion won, SM by 57.1 billion won, JYP by 44.9 billion won, and YG by 35.0 billion won. Given the proven demand for K-Pop in China, actual results are likely to exceed these projections. The industry structure is also changing. K-Pop agencies are diversifying their revenue streams beyond albums and concerts by leveraging artists’ intellectual property (IP) to develop merchandise (MD), dedicated platforms, and premium fan products. Global operations of fan-centric platforms such as Weverse Shop and the expansion of overseas pop-up stores are providing new revenue models even for emerging artists. The merchandise market, which originated from lightsticks, is expanding into everyday items like clothing, accessories, and household goods, driving industry growth. The government is also increasing support for the K-content industry. President Lee Jae-myeong has set “achieving a cultural powerhouse status through K-culture” as a core policy goal. Under the tax reform plan for 2025, income tax and corporate tax credits for webtoon content production costs will be introduced starting next year. Tax incentives for video content production costs have also been extended for three more years. Global streaming platforms are also utilizing K-content as a key driver of growth. Netflix has cited K-content as a major factor behind its best-performing quarters in recent times. If the Hanban ban is lifted, it is expected that entry into China’s online video services (OTT) will become possible, offering additional growth opportunities by leveraging the local platform’s 400 million users. In the investment market, products reflecting the Hallyu phenomenon are also being launched. NH-Amundi Asset Management’s “K-POP&Media ETF” includes not only the K-Pop Big 4 agencies (HYBE, JYP, SM, and YG Entertainment) but also major production companies such as CJ ENM, Studio Dragon, and SBS. As of the 18th, this ETF has achieved returns of 65.77% over the past year, 26% over the past six months, and 12.93% over the past three months.