In-Depth Look at K-Pop Groups, What Japan Needs to Do to Compete with Korea’s Entertainment Powerhouse

Korean idols now dominate the world. According to data released by the Korea Culture and Tourism Institute, overseas sales of K-POP in 2023 surpassed 1 trillion won (approximately 109.2 billion yen) for the first time in the country’s music history. Additionally, the Korean Ministry of Culture, Sports and Tourism (the administrative body equivalent to Japan’s Agency for Cultural Affairs) reports that domestic content industry exports in 2022 reached about 13.2 billion dollars (approximately 1.75 trillion yen), and the market is expected to grow into a massive 3 trillion yen by 2027.

For the first part, please see “In-Depth Look at Korean Idol Groups! Korea’s Strengths and Quality Behind Producing Hit Idols”

 

The strategies of the four major entertainment agencies

 

The Four Major K-POP Entertainment Agencies and Their Strategies

Currently, four major entertainment agencies dominate the K-POP scene, each with distinct strengths.

SM Entertainment, the oldest among them, is known for its quick adaptation to digital streaming, expansion into musicals and drama production, and its flexibility in producing music that fits the times. Following early successes in the 2000s with groups like TVXQ and Girls’ Generation, SM continues to launch popular groups in the 2020s such as aespa and RIISE.

YG Entertainment, known for its strict meritocracy, is the home of BIGBANG and BLACKPINK. Trainees who don’t meet skill standards are promptly dropped. YG artists are recognized for high skill levels and the agency actively collaborates with global superstars like Lady Gaga, Selena Gomez, and Bruno Mars. YG is particularly strong in global market awareness.

JYP Entertainment is famed for cultivating girl groups, with TWICE’s success marking a major breakthrough. TWICE was formed through the audition show SIXTEEN, which skillfully built fan enthusiasm before debut. JYP artists tend to have fewer scandals and maintain long careers compared to other agencies.

HYBE, the newest among the four, has grown into South Korea’s largest entertainment company thanks to BTS’s worldwide success. HYBE operates multiple labels, allowing it to debut a wide range of groups—from hip-hop acts to genre-blending groups like NewJeans, which revives ‘90s sounds and fashion. HYBE values the unique identity of each label, attracting diverse fan bases.

Besides these four, other influential agencies in Korea include STARSHIP Entertainment, home to IVE, and XGALX, which manages XG.

For Japan to win against Korea

How should Japan compete against Korea, which has now become one of the world’s leading entertainment empires?

“First, it’s essential to adopt the mindset of ‘going out into the world.’ Not only the songs themselves but also promotions must always be conscious of global standards. For example, Korean music programs have a system called chikkem. During performances, videos focusing on each individual member are released on YouTube.

If a group has six members, filming chikkem produces six pieces of content from one song. In contrast, Japanese music programs typically only stream performance videos on TVer for about a week, without leaving long-term archives. In terms of YouTube reach and view counts, Korea is overwhelmingly superior.

It is also necessary to establish institutions like the Content Promotion Agency, where the government supports private companies’ challenges. Japan needs to break away from its traditional business model and learn from Korea’s successful model,” said journalist Matsutani.

K-POP’s global excitement hides behind meticulous strategies, nationwide support for content, and the artists’ grueling efforts.

From the May 9, 16, and 23, 2025 issue of “FRIDAY”