K-Pop Maintains Global Influence Amid Trump’s Tariff Crisis…A Shift in Roles Between Domestic and Overseas Charts

While the K-pop industry was expected to rebound in 2024 after struggling with weak album sales and declining profits, Trump’s administration’s tariff policies and economic instability emerged as new challenges. On April 7, the day known as “Black Monday” when the KOSPI index dropped by 5.57%, HYBE, the largest company in the K-pop industry, experienced a decline of 5.89%, showing a sharper drop than the overall index. Initially, the K-pop industry was considered a “safe zone” from tariff threats alongside defense and shipbuilding sectors, as music and dance were not expected to be subject to tariffs unlike traditional industries such as SK hynix or Hyundai Motor. However, rising global uncertainty and concerns over economic slowdowns caused by China’s retaliatory tariffs began affecting K-pop-related stocks as well. A further structural change in the K-pop industry is the shift in fan attention. Where domestic music charts once held absolute dominance, global platforms like Billboard and Spotify now play a central role. BTS’s success in lowering barriers for K-pop idols to enter the U.S. music market and proving that they could achieve high rankings on internationally recognized charts served as the catalyst for this shift. The influence of domestic music charts such as Melon, Genie, Bugs, and Flo is declining. As of the 16th, “Too Bad” by G-Dragon topped Melon’s chart, “Don’t You Know (Prod. Rocoberry)” by Jo Jazz was in second place, and “I Am a Firefly” by Hwang Ga-ram ranked sixth, but these songs are largely unknown to overseas K-pop fans. Music critic Im Hee-yoon explained this gap as a result of K-pop idols focusing on overseas markets and prioritizing rankings on international charts over domestic ones. “In the past, when fanbases were active, they used tactics like mass purchases of music and albums as a ‘total attack’ to drive chart success. But now, many young listeners who used to stream K-pop on Melon have moved to platforms like YouTube, Spotify, and TikTok, changing the way popularity is measured,” said critic Im. According to Kakao Entertainment, which operates Melon, it is clear that K-pop artists are increasingly releasing songs aimed at a global audience and prioritizing overseas performances. Nevertheless, industry experts emphasize that domestic charts remain crucial indicators. For new groups and mid-career artists, performance on domestic charts is a matter of survival. An official from a major record label said, “Korea is the birthplace of K-pop, where trends originate, and Melon is the starting point for them.” Critic Im also warned that “it’s difficult for artists who are not at the level of BTS’s Jung Kook or BLACKPINK to immediately pursue a global sound,” adding that “in foreign countries, K-pop still remains in the category of subculture rather than mainstream.” Thus, domestic charts continue to play a vital role in helping idols without strong fanbases gain initial visibility.