Major K-pop Agencies Double Down on Southeast Asian Market with New Training Centers and Local Talent Recruitment

The K-pop industry is intensifying its efforts to penetrate the Southeast Asian market, which boasts rapid economic expansion and growing consumer infrastructure. Leading agencies such as SM Entertainment and YG Entertainment are actively recruiting local members and establishing training facilities to develop the ASEAN region as a key driver for future growth. In February of last year, SM Entertainment drew attention by adding Indonesian member Carmen to its new girl group Hearts2Hearts. This marked the first time an Indonesian has debuted under one of the so-called “four major agencies.” The music video for Hearts2Hearts’ debut track “The Chase” topped Indonesia’s most popular videos chart and received strong support from local K-pop fans. SM Entertainment had already been proactive in its push into Indonesia. In 2022, it opened the “Wasteland@Jakarta” flagship store in a Jakarta shopping mall, selling albums and merchandise from its artists. In January of this year, to celebrate the company’s 30th anniversary, it added various interactive areas such as mini exhibitions, photo zones, and event spaces to this location. In 2023, it held the “SMTOWN LIVE” concert in Jakarta featuring artists from its roster. The agency is also planning to open a K-pop training academy in Singapore. Through its subsidiary SM Universe, it intends to launch “SM Universe” at *SCAPE* shopping mall in Singapore in June. This facility will offer a 21-week intensive training program for K-pop aspirants from Southeast Asia, covering vocal training, dancing, music production, and stage performance skills. Participants will be required to pay around $10,000 in tuition fees, though scholarships may be provided to outstanding students. The first class will limit enrollment to 50 participants, who will be selected through online auditions. In the final week of the program, trainees will undergo further training at SM Universe’s campus in Seoul, with top performers gaining audition opportunities with major Korean agencies.

YG Entertainment is focusing its efforts on the Thai market. In 2021, it established a joint venture named “YGMM” with Thai entertainment company “GMM Grammy” to identify and nurture talented local artists. It debuted the new girl group BABYMONSTER featuring two Thai members, Pharita and Chiquita. Additionally, it opened stores for its overseas food brand “YG Republic” on the top floors and rooftops of ShowDC, a large shopping mall in Bangkok. Having already achieved success in Thailand through BLACKPINK’s Lisa, YG continues to strengthen its strategy of recruiting local talent. HYBE is paying attention to the Vietnamese market. Its AI-powered project “Midnight” supports Vietnamese, the only ASEAN language it currently handles. Big Hit Education also developed Korean language learning materials based on BTS’s methods and launched Korean classes in Vietnam. The performances of NewJeans’ Vietnamese-member Hanni further contribute to HYBE’s efforts in this market. The new girl group UNIS is concentrating on the Philippine market, led by Filipino members Elisia and Jelly Dangkala. Elisia became famous in the Philippines after winning the audition program “Universe Ticket,” setting a record as the first foreigner to win such a program. UNIS has secured sold-out fan concerts in Manila and Cebu, establishing a solid foundation in the local market.

Southeast Asia represents a massive consumer market with a population of 630 million people and a GDP of approximately $2.6 trillion, experiencing stable annual growth rates of 4% to 5%. The rising penetration of smartphones and digital infrastructure has led to a surge in demand for cultural content among younger generations. Over the past five years, the digital content market in Southeast Asian countries has grown at an average annual rate of over 10%, with content consumption through social media and OTT platforms exceeding global averages. Thailand, in particular, serves as the heart of the K-pop craze in the region, having produced successful idols such as BLACKPINK’s Lisa, 2PM’s Nichkhun, GOT7’s BamBam, (G)I-DLE’s Lisa, and NCT’s Ten. Indonesia is another attractive market due to its young population, with roughly one-third of residents aged 10 to 29, resulting in high demand for K-pop. Bangkok and Jakarta have become almost mandatory stops for K-pop artists during tours in Southeast Asia. The aggressive expansion of K-pop agencies into this region is viewed not merely as an attempt to expand fan bases but as a strategic investment aligned with global economic trends. Through multiple approaches such as identifying local talent, building training facilities, and operating flagship stores, these agencies aim to establish long-term relationships with consumers across ASEAN.