K-Pop Industry in 2024: 19% Drop in Album Sales and Collapse of Bubble Due to Scandals

The K-Pop industry faced its worst crisis ever in 2024. A sharp decline in album sales combined with a series of scandals led to the complete collapse of the "album inflation" bubble that had persisted for several years. According to Circle Chart, operated by the Korea Music Content Association, album sales, which reached 116 million units in 2023, dropped to approximately 93.14 million units from January to November this year — a decline of 19% on a cumulative basis. This represents a 20% decrease in just one year, signaling a severe crisis for the industry. The secretary-general of the Korea Music Content Association expressed concern, saying, "Although we expected some adjustment in sales due to last year’s overheated album market, we never anticipated such a sharp drop."

The crisis in the K-Pop industry extends beyond album sales figures. According to customs export and import trade statistics, album exports in the first half of this year amounted to 130,321,000 dollars (approximately 192.7 billion won), a 2.0% decrease compared to the same period last year. It was the first time since 2015 that album exports had declined in the first half of a year. Although the number of countries to which albums were exported increased to 85, overall export volume fell due to slowing growth in key markets such as the United States and Japan.

The biggest factor accelerating the industry crisis was the conflict between HYBE, South Korea’s largest entertainment company, and former ADOR CEO Min Hee-jin. After HYBE launched an internal audit in April over what it claimed was Min’s "attempt to seize control," the dispute between the two parties has lasted for over eight months. As a result of this, NewJeans unilaterally terminated its contract with ADOR on November 28. On that day, NewJeans member Hanni explained the reason for ending the contract at a press conference, stating, "ADOR has no intention of protecting the group," and adding that staying with the agency would only increase psychological pain and waste time.

During this period, HYBE submitted an internal document containing negative comments about K-Pop idols to the government. When the document leaked to the media, it sparked fierce criticism from fans and idols, forcing HYBE to issue a public apology. SEVENTEEN’s Seungkwan criticized the situation by posting a lengthy Instagram post saying, "No one has the right to belittle our stories."

The scandals spread beyond the HYBE-ADOR conflict to affect the entire industry. Incidents such as RIIZE’s Seunghan having his comeback canceled in October, BTS’s SUGA being caught driving under the influence on an electric scooter in August, and NCT’s Taeil leaving the group due to sexual offense allegations in August occurred one after another. The number of singers suspected of engaging in tempering — prior contact with third parties during contract periods — also increased last year to include FIFTY FIFTY, EXO, and NewJeans.

The Korea Content Promotion Agency noted in its 2025 content export forecast report that "the conflict between HYBE and ADOR, along with the misbehavior of K-Pop idols, has created fatigue within the K-Pop industry." A popular music critic described it as "the worst factor" when considering the long-term impact of disputes between singers and their agencies on overall K-Pop consumption.

However, there is still hope for next year. G-DRAGON has resumed his activities since the end of the year, and BTS and BLACKPINK have announced plans for "full-group" activities in 2025. BTS’s Jimin sent a positive signal to fans in a community post, saying, "I’m already excited about what songs and stages we’ll present after I finish my military service."