K-pop Industry Restructuring in the Era of Global Fanbases... Declining Influence on Domestic Charts, CJ ENM Boosting Platform Strategy

As K-pop solidifies itself as a global cultural phenomenon, the structure of South Korea’s music industry is changing rapidly. While the influence of domestic music charts is waning, industry restructuring centered around global platforms such as Spotify and Billboard is accelerating. Korean music charts like Melon, Genie, Bugs, and FLO are no longer a top priority for major K-pop agencies. This trend has become even more pronounced since BTS reduced barriers to entering the U.S. music market, as fans prioritize performance on global platforms over domestic charts. An official from a major agency explained, “These days, the success of K-pop idols is measured more by their performance on overseas charts, so fans pay less attention to domestic music charts. Additionally, the average age of users on Korean music platforms is gradually rising.” Currently, Melon’s chart is dominated by songs such as G-Dragon’s “Too Bad,” Jo Jae-ze’s “Don’t You Know (Prod. Rocoberry),” and Hwang Ga-ram’s “I Am a Firefly.” This reflects both the weakened status of domestic charts and the shift in focus of mainstream K-pop fanbases. Music critic Im Hee-yoon diagnosed this phenomenon as a gap created by K-pop idols focusing on overseas markets. He said, “In the past, when idol fanbases were active, they drove success on domestic charts through bulk purchases and streaming. But now, as fans move to platforms like YouTube, Spotify, and TikTok, the way chart performance is measured has itself changed.” According to a survey by Melon, operated by Kakao Entertainment, K-pop artists are increasingly releasing songs with global appeal and prioritizing overseas performances. Nevertheless, industry insiders emphasize the importance of domestic charts, which remain a critical standard especially for new groups and mid-tier artists. A statement from an official at a large agency confirming this is, “South Korea is the birthplace of K-pop, where trends originate, and Melon is the starting point.” Im Hee-yoon also warned that pursuing global success too early without a domestic foundation can be risky. He explained, “Some agencies immediately pursue a global sound and dream of entering mainstream overseas markets, but unless they reach the level of BTS’s Jung Kook or BLACKPINK, they rarely succeed. Abroad, K-pop is still part of a subculture, not mainstream.” Amid these industry changes, CJ ENM has launched an expansion strategy for the K-pop ecosystem by focusing on a triangular approach involving content, platforms, and commerce. At the “MUSIC Media Lounge” held in Gangnam-gu, Seoul, on the 15th, CJ ENM unveiled its global vision for its music business to mark Mnet’s 30th anniversary. Over the past 30 years, CJ ENM has expanded its presence in the global music market through more than 300 production staff members, 25 in-house studios, and major offline IPs such as MAMA and KCON. Building on this, it has created a music creation ecosystem (MCS) that includes audition programs, labels, content, and fanbases. The core of the strategy unveiled this time is strengthening the multi-label system, diversifying production formats, and upgrading fanbase platforms. Along with expanding global labels based on WeekOne and Japan’s Ropone, CJ ENM announced the launch of another global joint label within the year. This label will feature collaborations between Korean producers and overseas artists and is expected to serve as a model for localizing K-pop by region. In terms of content production, various genres and formats such as “World of Street Woman Fighter,” “Boys to Planet,” the co-produced “Kpopd” with Apple TV+, and “Hip-hop Princess” are being introduced. This indicates an increase in content experimentation based on OTT partnerships rather than relying solely on broadcasters. At the heart of the platform strategy is the fan app “Mnet Plus.” It is evolving into an expanded platform that integrates original content, fan interaction features, and commerce beyond its traditional fan community functions. It currently has 27 million subscribers, 7 million monthly active users (MAU), and a total of 320 million votes cast. The beta version of its merchandise service, “Mnet Plus Merch,” is set to launch on April 24. Independent of industry trends, major K-pop companies are also affected by global economic factors. When the KOSPI index dropped 5.57% on “Black Monday” on April 7, HYBE experienced a decline of 5.89%, falling below the market average. There are concerns that tariff policies imposed by the Trump administration could impact the K-pop industry as well. The dominance of girl groups in the fourth-generation idol era is expected to continue. Critic Kim Yoon-ha said, “Fourth-generation girl groups are actively leading every aspect, including trends, popularity, music charts, and fanbases. Agencies are also providing them with complex and challenging content. A strong fanbase ensures freedom, and they produce results that match that cohesion, so their dominance will persist.” Meanwhile, the rise in locally adapted K-pop idols is also drawing attention. Even large Korean agencies are joining this trend, but critics analyze that the secret to K-pop’s success lies in South Korea’s system itself. They argue, “K-pop doesn’t simply mean ‘Korean’—it encompasses everything positive and negative, physical and mental, about South Korea.”