K-Pop Labels Expand Localization Strategies to Maintain Global Fanbases...Signs of Market Reopening in China

As K-pop evolves from a mere music genre into a core component of the global cultural industry, Korean entertainment companies are aggressively implementing localization strategies in key markets. At the Korea Investment Week (KIW 2025) forum held in Seoul, major agencies outlined new industrialization strategies aligned with K-pop’s shifting status. Shin Hyung-kook, head of JYP Entertainment’s U.S. branch, stated, “K-pop is no longer just a music genre; it has transformed into an irreplaceable new industry.” JYP America’s localization efforts focus on the “A2K (America2Korea)” project launched in 2023. This initiative, a partnership between JYP America and Republic Records under Universal Music Group, features auditions to form K-pop girl groups tailored for the U.S. market. Shin explained, “We are developing AI artists customized for the American market.”

Kakao Entertainment and SM Entertainment are also intensifying their efforts to enter the Chinese market. Kim Donghyun, vice president in charge of these companies’ operations in China, said, “We are actively engaging with local fanbases through major platforms such as Weibo, Douyin, and Xiaohongshu.” The acquisition of SM Entertainment’s shares by Tencent Music Entertainment Group in May is expected to accelerate expansion into China. Signs of market reopening there could have a significant economic impact on the K-pop industry. After being blocked in China for approximately eight years following the deployment of THAAD systems in 2016, the Korean Wave is showing signs of thawing this year. Some Korean dramas and variety shows have been reintroduced on Chinese OTT platforms, and performances and fan meetings by K-pop artists are cautiously resuming. For major agencies like HYBE, SM, JYP, and YG, overseas fanbases play a crucial role in their revenue structures, with China serving as a key pillar alongside the United States and Japan. The reopening of this revenue source after eight years of closure is expected to improve performance across the entire entertainment industry and boost vitality throughout the content sector.

The U.S. K-pop retail market is also thriving. K-Pop Wonderland in West Allis, Wisconsin, opened in January 2024 and is one of only two K-pop specialty stores in the state. Owner Tina Melk opened the store after realizing a lack of K-pop communities in the U.S., and sales have been strong since its opening. The store functions beyond a simple retail space as a community hub where fans can meet others with shared interests. It sells K-pop-related products such as tote bags, bracelets, CDs, and collectible figurines, and holds events throughout the year to help fans connect and build networks within the community.

K-pop animation studios are also focusing on the global merchandise market. Choi Jae-won, chief operating officer of SAMG Entertainment, the producer of the animated series <Catch! TinyPing>, said, “The global character merchandise market is growing explosively.” He explained, “Our medium- to long-term goal is to enter major Chinese merchandise distribution platforms like Popmart and MiniSo to achieve quantitative growth.” K-pop’s global influence is evident even in sports. When Son Heung-min joined the U.S. Major League Soccer team LAFC in August, tickets sold out for every match, with black-market prices rising four to five times. The announcement that proceeds from his jersey sales would be donated to football development and social causes generated significant resonance in American society. The Korean Wave is now evolving into a global phenomenon spanning music, dramas, sports, tourism, and the consumer industry as a whole.