K-pop Stars Leaving Major Agencies as Solo Agencies Rise 73% in 5 Years

South Korea’s entertainment industry is undergoing a major structural transformation, as established K-pop stars are increasingly leaving large agencies to form their own independent businesses.

From 2021 to 2025, the number of registered entertainment agencies increased by 73%, reaching a total of 6,140 organizations over those five years. A survey conducted by the Korea Content Agency in January 2026 further showed that the proportion of solo agencies rose from 2.5% in 2020 to 4.3% in 2024, while the share of agencies affiliated with large companies dropped from 14.8% to 9.1% during the same period.

The primary driver behind this shift is differences in tax regulations. In South Korea, the highest individual income tax rate is 45% for incomes above approximately $730,000, whereas the corporate income tax rate is capped at 25%. By operating as a solo agency, artists can take advantage of various expense deductions that are unavailable to individual taxpayers, allowing high-earning artists to achieve significantly higher net profits.

Leading this trend are top-tier K-pop artists. BoA, who had been active with SM Entertainment for 25 years, ended her contract on December 31 of last year and established BApal Entertainment in March of this year. After their individual contracts with YG Entertainment expired in 2023, the members of BLACKPINK also founded their own agencies. Jennie created Odd Atelier, Jisoo set up BLISSOO, Lisa launched LLOUD, and Rosé signed with the producer-focused boutique label TheBlackLabel.

However, this rapid growth of solo agencies has triggered regulatory investigations by the government. In January 2026, the Seoul National Tax Service notified Cha Eun-woo, an actor and member of ASTRO, that he owed approximately 20 billion won ($