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Current Dynamics and Influence in the K-pop Industry: 2023-2024 Highlights and Insights

GOOVER DAILY REPORT August 18, 2024
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TABLE OF CONTENTS

  1. Summary
  2. Controversies and Public Reactions
  3. Key Achievements and Milestones
  4. Brand Reputation and Market Influence
  5. Financial Performance of Entertainment Companies
  6. Insights into Group Dynamics and Industry Impact
  7. Conclusion

1. Summary

  • The report 'Current Dynamics and Influence in the K-pop Industry: 2023-2024 Highlights and Insights' explores the recent developments within the K-pop industry, focusing on significant incidents, financial performances, brand value rankings, and key achievements of prominent K-pop groups and idols. Among the topics covered are the controversies involving BTS members RM and SUGA, notable milestones by groups such as aespa and Twice, as well as the brand value rankings of various K-pop idols. Additionally, the report provides a detailed financial review of major entertainment companies like HYBE Corporation and the stock performances influenced by these activities. Furthermore, insights into dynamics within groups like NewJeans and the continuity of Blackpink are discussed, shedding light on current trends and future prospects in the industry.

2. Controversies and Public Reactions

  • 2-1. RM criticized for social media post during SUGA’s DUI issue

  • On August 7, BTS member SUGA was charged with drunk driving, leading to significant public attention and controversy. Following the incident, RM, the leader of BTS, posted an Instagram story that many found insensitive given the circumstances. Critics argued that RM's post seemed dismissive of the serious situation. However, there were also defenders who suggested that RM might not have been fully informed about the incident due to his ongoing military service. Different perspectives emerged among fans and the public, with some emphasizing that criticism should be focused on SUGA’s actions rather than RM’s social media activity. RM continues to be a significant figure in the music industry despite the controversy, being both a prominent member of BTS and a successful solo artist.

  • 2-2. Public and fan reactions to the controversies

  • The reactions to the controversies involving BTS members RM and SUGA were mixed. Some netizens criticized RM for his perceived insensitivity, while others defended him, suggesting he might not have been aware of SUGA’s DUI incident due to his military service. Comments from Korean netizens varied, with some expressing disbelief that RM could be unaware of such major news, while others argued he should not be blamed for the actions of another group member. The public debate highlighted a division among fans and the general public regarding the appropriate targets for criticism. Additionally, the overall perception of BTS and their agency, Hybe, was further impacted by the ongoing disputes and controversies within the K-pop industry, contributing to a broader discussion on public behavior and responsibility among celebrities.

3. Key Achievements and Milestones

  • 3-1. Top K-pop songs of 2024

  • The year 2024 has seen a diverse array of K-pop releases, showcasing the genre's global influence. Notable songs include IU's "Love Wins All," a tender love ballad, and "Lovers or Enemies" by CIX, celebrated for its raw emotions and excellent vocal performance. (G)I-dle’s "Super Lady" stands out with its empowerment theme and dynamic visuals. Newcomer Illit made a strong debut with "Magnetic," a track that combines ambient tones with electronic dance music. Riize's "Impossible" resonates with its uplifting message about teamwork. Zico and Jennie (Blackpink) teamed up for the addictive hip-hop track "Spot!" Seventeen’s "Maestro" merges R&B and EDM with a futuristic AI narrative. Aespa’s "Supernova" from their album Armageddon presents a powerful performance, and Red Velvet’s "Cosmic" offers a dreamy listening experience. Jimin (BTS) adds to the list with "Who," a track defined by his unique voice and ambient arrangement.

  • 3-2. Twice’s 800 million views milestone

  • Twice achieved a significant milestone by garnering 800 million views on YouTube for their music video "What is Love?" This is the group's first video to reach this milestone. "What is Love?" is the title track from Twice’s fifth EP, released in 2018, and showcases each member as a movie character in its music video. Additionally, Twice holds the record for having the most music videos with over 100 million views for a girl group, with 24 videos. The group recently concluded their fifth world tour, with a notable performance at the Nissan Stadium in Japan, drawing a crowd of 140,000 fans over two days.

  • 3-3. Lisa’s Billboard achievements and upcoming projects

  • As of the current report, detailed specific achievements or upcoming projects related to Lisa have not been identified from the provided documents.

4. Brand Reputation and Market Influence

  • 4-1. aespa’s ranking in brand value

  • In August 2024, aespa secured the top position in the brand value rankings according to the Korea Brand Reputation Research Institute. The group achieved a brand reputation index score of 5,112,782, marking them as the highest-ranked K-pop idol group for the month. This index was derived from an analysis of big data that included consumer participation, media activity, communication, and community activity from July 15 through August 15, 2024. Despite a 15.21% drop from the previous month's index of 5,248,038, aespa's brand value remained the highest among K-pop groups, supported by their global presence and ongoing world tour. Fans commonly associate aespa with terms like 'record-setting,' 'overwhelming,' and 'succeeding,' and buzzwords such as 'Supernova' and 'Armageddon,' which are prominent in the group's recent successes.

  • 4-2. Overall Brand Value Rankings of K-pop Groups

  • In August 2024, the top K-pop idol groups in terms of brand reputation index were: aespa in the first place with a score of 5,112,782, followed by Seventeen in second place with a score of 3,928,255, and IVE in third place with a score of 3,807,785. The rest of the top 10 rankings are as follows: Red Velvet, tripleS, Stray Kids, TWICE, BLACKPINK, NCT, and SHINee. The rankings were based on a comprehensive analysis by the Korea Brand Reputation Research Institute that evaluated areas such as consumer participation, media coverage, interaction, and community buzz. Notably, NewJeans did not make it into the top 30 for the third consecutive month, landing at the 46th position with a brand reputation index score of 703,133.

5. Financial Performance of Entertainment Companies

  • 5-1. Financial review of HYBE, SM, JYP, and YG for Q2 2024

  • In the second quarter of 2024, financial results for the four major K-pop entertainment companies - HYBE, SM Entertainment, JYP Entertainment, and YG Entertainment - showed varied performances. HYBE Corporation, the company behind global sensations such as BTS and SEVENTEEN, announced an operating profit of 50.9 billion KRW (approximately 37 million euros) with revenues of 640.5 billion KRW (approximately 465 million euros). SM Entertainment, managing influential groups like EXO, NCT, and aespa, posted an operating profit of 31.8 billion KRW (approximately 23.1 million euros) with revenue of 244.1 billion KRW (approximately 177 million euros). JYP Entertainment, which manages groups like TWICE, Stray Kids, and ITZY, recorded an operating profit of 20 billion KRW (approximately 14.5 million euros) with revenue of 96.8 billion KRW (approximately 70.35 million euros). Lastly, YG Entertainment, the label behind the newly debuted group BABYMONSTER, reported an operating profit of 300 million KRW (approximately 217 euros) with revenues of 917 billion KRW (approximately 101.7 million euros).

  • 5-2. Stock performance and challenges faced by major entertainment companies

  • Despite the continued global popularity of their artists, the stock prices of the four major K-pop entertainment companies (HYBE, SM Entertainment, YG Entertainment, and JYP Entertainment) have faced declines up to 2024. Analysts attribute this downward trend partially to the absence of their biggest artists, such as BTS for HYBE and BLACKPINK for YG, which impacted the revenue of these companies during the second quarter. Market experts pointed out that controversies and public scandals involving key artists and executives also played a significant role in dwindling stock prices. For instance, the Korea Stock Exchange (KRX) reported HYBE’s stocks dropped 4.56%, closing at 163 won ($100). SM Entertainment's stock dropped 2.84%, closing at 64 won, YG Entertainment’s stocks fell 900 won, and JYP Entertainment dropped 34 won. Analysts highlighted the impact of public sentiment and the operational absence of BTS members due to military service on HYBE's stock as a critical factor. Notable incidents include CEO Bang Si-hyuk's controversies and the involvement of BTS member Suga in a recent DUI accident. Additionally, BLACKPINK’s Jennie was involved in a controversy over alleged smoking indoors. These events have contributed to investor concerns and impacted the stock performance of these entertainment companies.

6. Insights into Group Dynamics and Industry Impact

  • 6-1. The Dynamics within NewJeans under HYBE

  • NewJeans, a South Korean K-pop girl group formed by ADOR (a subsidiary of HYBE Corporation) under the direction of CEO Min Hee Jin, debuted on July 22, 2022. The group achieved rapid success with singles like 'Attention' and 'OMG', the latter surpassing 700 million streams on Spotify. Their second EP, 'Get Up,' achieved the No. 1 spot on the Billboard 200 in July 2024. NewJeans significantly impacted South Korean culture and tourism by being appointed as honorary ambassadors for Korean tourism, helping to boost the industry’s recovery to pre-pandemic levels. The group has faced internal conflicts, notably between Min Hee Jin and HYBE over members' appearances in BTS’s music video without prior agreement. Financial discrepancies among HYBE subsidiaries were reported, with ADOR generating sales of approximately $45,154,000 USD and a net income of around $8,103,000 USD in the first half of 2024. Despite ongoing management disputes and plagiarism allegations, NewJeans continue to influence global fashion and trends and have crossed over into various industries beyond music.

  • 6-2. Continuity and Solo Projects within Blackpink

  • Despite concerns about Blackpink’s group activities due to members focusing on solo careers, Lisa Manobal confirmed in an August 2024 interview with ELLE that the group would continue as an entity under YG Entertainment. Lisa released her first solo single in three years, ‘Rockstar,’ in June 2024, after departing YG and launching her own label. The group is set to reunite for a new comeback and world tour in 2025, dispelling fears of disbandment. While continuing group activities, members are also pursuing individual projects. Lisa is set to take on her first acting role in ‘The White Lotus’ Season 3, filming in Thailand. Additionally, she has a new collaborative track with Spanish star Rosalia titled 'New Woman,' which was released on August 15, 2024.

7. Conclusion

  • The findings of this report illustrate the dynamic and evolving nature of the K-pop industry, characterized by a mix of achievements, financial challenges, and shifting brand value rankings. Key milestones accomplished by groups such as aespa and Twice demonstrate their continuing influence and appeal, while the financial performances of major companies like HYBE Corporation highlight both successes and struggles due to controversies and stock price fluctuations. The controversial incidents, particularly involving RM and SUGA of BTS, underscore the industry's sensitivity to public perception and the impact of celebrity behavior. Looking ahead, while major entertainment companies face financial uncertainties, the tenacity and innovation of K-pop groups and idols, including significant solo achievements by artists like Lisa from Blackpink, promise sustained global influence and further evolution. Future developments in the K-pop scene will likely continue to shape the entertainment industry's landscape, driven by ongoing fan engagement and strategic group activities.

8. Glossary

  • 8-1. aespa [K-pop group]

  • Aespa, formed in 2020 by SM Entertainment, has consistently topped brand value rankings and achieved significant commercial success with hits like 'Next Level' and 'Supernova.' They are noted for their strong fan engagement and record-breaking album sales.

  • 8-2. HYBE Corporation [Entertainment company]

  • HYBE Corporation, which manages leading K-pop groups like BTS and SEVENTEEN, has demonstrated notable financial success but also faces challenges due to controversies and fluctuating stock prices.

  • 8-3. Lisa (BLACKPINK) [K-pop idol]

  • Lisa, a member of BLACKPINK, has made significant solo achievements, including her song 'Rockstar' on Billboard's Pop Airplay chart, reflecting her strong influence and success beyond group activities.

  • 8-4. Twice [K-pop group]

  • Twice, a popular K-pop girl group, achieved a milestone by reaching 800 million views for their music video 'What is Love?' on YouTube, highlighting their lasting appeal and widespread fanbase.

9. Source Documents