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The Multifaceted Dynamics of the K-pop Industry: Achievements, Controversies, and Market Trends

GOOVER DAILY REPORT August 10, 2024
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TABLE OF CONTENTS

  1. Summary
  2. Plagiarism Allegations in K-pop
  3. Achievements and Rankings
  4. Cultural and Fashion Trends in K-pop
  5. Market Dynamics and Financial Trends
  6. Influence of Iconic K-pop Groups
  7. Events and Fan Engagement
  8. Conclusion

1. Summary

  • The report titled 'The Multifaceted Dynamics of the K-pop Industry: Achievements, Controversies, and Market Trends' examines the diverse elements influencing the K-pop domain. It explores significant issues such as plagiarism allegations involving groups like TWS, BLACKPINK, and NewJeans, affecting fan trust and the reputations of artists. The report also highlights notable achievements, including NewJeans topping the K-Brand Index and their song 'Ditto' leading the Melon charts. Cultural trends in fashion, such as face jewelry and idol influences, and the economic performances of top agencies like Hybe Corp. and YG Entertainment, are critically analyzed. Additionally, it covers the enduring impact of iconic groups like BIGBANG and the influence of events like KCON L.A. on fan engagement.

2. Plagiarism Allegations in K-pop

  • 2-1. Fan Reactions to Plagiarism Allegations

  • The recent plagiarism allegations in the K-pop industry have sparked significant discussions among fans. Major controversies include accusations against TWS for their song 'Double Take,' BLACKPINK’s Lisa for her music video 'Rockstar,' and disputes between HYBE's girl groups, NewJeans and ILLIT. Fans have expressed strong reactions on social media, highlighting the striking similarities between the works in question and critiquing the lack of creative integrity. While some fans defend their favorite artists or groups, others criticize the companies involved, particularly noting the swift deletion of related news articles and the perceived manipulation of public opinion.

  • 2-2. High-Profile Cases and Media Influence

  • Key incidents such as TWS's 'Double Take' being compared to GD&TOP's 'Knock Out,' Lisa's 'Rockstar' music video alleged to plagiarize Travis Scott's 'FE!N', and NewJeans vs. Shakatak's 'Easier Said Than Done' have gained widespread media attention. These cases illustrate the significant power that K-pop agencies wield over media narratives. The removal of critical articles from Korean news sites has led to increased speculation regarding the influence of major entertainment companies like HYBE in shaping public perception and controlling the dissemination of information.

  • 2-3. Impacts on Artist Reputations and Fan Trust

  • The ongoing plagiarism allegations have considerably affected the reputations of the involved artists and groups, with notable impacts on fan trust. For instance, NewJeans's alleged plagiarism of Shakatak's 'Easier Said Than Done' has led to a legal challenge by WISE Music Group. Fans' trust is eroded not only by the allegations themselves but also by the perceived lack of transparency, as evidenced by the deletion of news articles and the absence of official responses from management companies. This erodes the credibility of the artists and the authenticity of their creative outputs, causing fans to question the integrity of the industry as a whole.

3. Achievements and Rankings

  • 3-1. K-Brand Index Rankings

  • The K-Brand Index, curated by the Asia Brand Research Institute, reflects the prominence and influence of various idol groups. Notably, NewJeans led the index in August 2024, surpassing BTS and SEVENTEEN, who secured the second and third positions respectively. The index encompasses data from six pop culture surveys conducted by Korean Gallup, ensuring its validity. The list evaluates the top 30 brands across multiple metrics: Trends, Media, Social, Positive, Negative, Activation, and Community. In addition to topping the K-Brand Index, NewJeans achieved significant milestones, such as their song 'Supernatural' reaching number 32 on the Billboard Global Chart and hosting an event at Tokyo Dome shortly after their debut.

  • 3-2. Milestones and Chart-Topping Achievements

  • Several K-pop songs have made history on the Melon charts, a prominent music streaming platform in South Korea. Among these, 'Ditto' by NewJeans holds the record for the most weeks at number one, maintaining its position for 14 weeks. BTS's 'Dynamite' and aespa's 'Supernova' both stay impressive with 11 weeks each at the top spot. Other notable mentions include AKMU's 'Love Lee' (9 weeks), BIGBANG's 'LAST FAREWELL' and Girls' Generation's 'Gee' (both 8 weeks each). These achievements highlight the enduring popularity and influence these groups exert over the music landscape.

  • 3-3. Best K-pop Songs of 2024

  • The musical landscape of 2024 is vibrant, featuring dynamic tracks from both emerging and established artists. Noteworthy songs include '해야 (HEYA)' by IVE, a playful anthem celebrating South Korea's cultural heritage, and 'Magnetic' by ILLIT, a debut track characterized by its bubbly production and catchy lyrics. aespa's 'Supernova' garnered significant attention for its innovative sound and record-breaking chart performance. Other hits include NMIXX's 'DASH,' BOYNEXTDOOR's 'Earth, Wind & Fire,' and Taeyong's 'Tap.' Each song demonstrates K-pop's ability to blend diverse musical elements and captivate global audiences.

4. Cultural and Fashion Trends in K-pop

  • 4-1. Face Jewelry and Makeup Trends

  • “Face jewel” makeup involves attaching sparkling jewels or objects like rhinestones, crystals, and pearls to the face to create a unique makeup look. This trend, which began last summer, has remained popular and is commonly seen in celebrities’ makeup. It is now a staple makeup element among idols. - Winter from aespa enhances her nose with shimmering crystal rhinestones, amplifying her mysterious aura. - Jennie from BLACKPINK adorns her nose bridge with glitter and small rhinestones, creating a galaxy-like adorable look. - An Yu-jin from IVE uses rhinestones around her nose and eyes, resembling stars in the night sky. - Lee Hi applies rhinestones subtly around her eyes and nose, creating an ethereal fairy-like vibe. - Sieun from STAYC uses pastel-toned rhinestones on her nose to enhance her doll-like makeup. - Hanni from NewJeans adds a mystical and dreamy atmosphere using silicone objects on her nose in photos from their June album 'Supernatural.' These examples underscore the diversity and growing influence of nose makeup trends among K-pop idols.

  • 4-2. NewJeans' Influence in Fashion

  • NewJeans, a K-pop girl group formed by ADOR under HYBE Corporation, has significantly influenced global fashion through various ambassadorships and endorsements. - Haerin is a Dior House ambassador for jewelry, fashion, and beauty. - Hanni represents Gucci and Armani Beauty. - Hyein serves as Louis Vuitton's brand ambassador. - Danielle, transitioned from representing Burberry to becoming the face of Celine. These roles highlight the group's influence and integration within the global fashion scene, positioning NewJeans at the forefront of fashion trends and luxury brand collaborations. Their involvement with such high-profile brands illustrates their broader cultural impact beyond the music industry.

5. Market Dynamics and Financial Trends

  • 5-1. Plummeting Stock Prices of K-pop Agencies

  • The stock prices of major K-pop agencies have seen significant declines over the past year. According to a report, Hybe Corp., known for managing BTS, witnessed a drop of 34%, trading at KRW170,300. SM Entertainment fell by 41% to KRW70,000. YG Entertainment, managing artists like Blackpink, experienced a 51% decline to KRW35,800, and JYP Entertainment saw a 59% drop to KRW53,200. These declines are attributed to a reduction in new material from top acts, heavy costs associated with launching new acts, and overall poor financial performance during the year.

  • 5-2. Impact of Military Service on Financial Performance

  • One major factor affecting the financial performance of K-pop agencies is the mandatory military service of key artists. For instance, the absence of new material from BTS due to their military commitments led to a 12% decrease in Hybe Corp’s revenue and a 70% drop in operating profits, amounting to just $11 million. Similarly, the hiatus of Blackpink members affected YG Entertainment significantly, contributing to their financial downturn. This mandatory service poses a consistent challenge to the agencies' financial stability.

  • 5-3. Shifting Focus to Western Markets

  • In response to declining returns in the Chinese market and diplomatic tensions affecting K-pop’s reception in China, agencies are shifting their focus to Western markets. K-pop’s popularity in the U.S., Europe, and Latin America is on the rise, with notable performances such as Blackpink at Coachella and the success of BTS members’ solo projects. Agencies are also launching new acts with a more international appeal, including English-language components, to capitalize on these markets. This strategic pivot is partly to mitigate the losses incurred from the diminishing Chinese market, which saw a provisional 90% drop in Korean album sales this year due to ongoing diplomatic issues and market penalties.

6. Influence of Iconic K-pop Groups

  • 6-1. BIGBANG's Legacy and G-Dragon's Influence

  • The comprehensive influence of BIGBANG and its leader, G-Dragon, on the K-pop industry is profound and multi-dimensional. Formed by YG Entertainment, BIGBANG made their debut in 2006 with five members: G-Dragon, T.O.P, Taeyang, Daesung, and Seungri. Despite the lukewarm reception of their debut album, they quickly rose to fame with hits like 'Lies' and 'Fantastic Baby.' These songs were pivotal, with 'Lies' topping Korean music charts for six consecutive weeks. BIGBANG is often referred to as the 'Kings of K-pop,' and their international success includes chart-topping hits and world tours, which have contributed significantly to the global recognition of K-pop. G-Dragon’s solo career further solidified their influence. His ventures in music and fashion, including his brand PEACEMINUSONE and collaborations with luxury brands like Nike and Chanel, have marked him as a cultural icon. Despite challenges such as market volatility and agency stock price declines, G-Dragon continues to be a pivotal figure, as evidenced by the acquisition of his stage name's trademark by Galaxy Corp. This reflects his immense contribution to the industry and highlights his ongoing influence and legacy.

  • 6-2. Fan Perspectives on Iconic Groups

  • Fan perspectives play a crucial role in understanding the influence of iconic K-pop groups. A significant portion of discussions on platforms like K-POPforums revolves around BIGBANG's enduring appeal, particularly among male fans who appreciate the group's broad, non-gender-specific appeal. BIGBANG's music and aesthetics are noted for being accessible to a diverse audience, unlike other boy groups that often target specific demographics. Fans highlight the group's charisma, stage presence, and the unique talents of individual members like G-Dragon, Taeyang, and T.O.P. These factors contribute to their lasting appeal and fan loyalty. Discussions also emphasize the group's role in influencing subsequent generations of K-pop idols, as nearly every boy group since has named BIGBANG as an inspiration. Despite differing opinions on who the best K-pop group is, with some fans favoring groups like SHINee or BTS, the broad consensus acknowledges BIGBANG's significant impact and ongoing legacy in the K-pop industry.

7. Events and Fan Engagement

  • 7-1. Krazy Super Concert and Artist Lineup

  • The Krazy Super Concert, organized by Pulse Events, will be held on September 14 and 15 at Long Beach Arena. The all-star lineup includes aespa, CL, and ZEROBASEONE, who will perform on both days. Additional artists such as DK from iKON, SUNMI, BamBam, LAY ZHANG, Kim JongKook, KATSEYE, and AKMU are also confirmed. GRAMMY-nominated hip-hop artist The Kid LAROI will also make an appearance. General admission tickets and VIP packages were available for pre-sale on August 1, with public sales starting on August 2 via Ticketmaster. The concert aims to become a staple in the Southern California music community, celebrating K-pop with top artists, trendy music, authentic culture, and unparalleled fan engagement.

  • 7-2. Impact of Major Events like KCON L.A.

  • KCON L.A., organized by CJ ENM, was held over a three-day period at the Los Angeles Convention Center and Crypto.com Arena. The event featured numerous leading K-pop acts and attracted significant global attention. While specific attendance figures were not disclosed, over 5.9 million fans from more than 170 countries engaged with the event both in person and through digital platforms. Despite the broad reach, general foot traffic at the daytime event appeared to dip compared to past years. Notable performers included Enhyphen, Jeon Somi, ZeroBaseOne, Bibi, NCT 127, StayC, Hyolyn, Ini, ME:I, TWS, and Zico. In addition to the musical performances, the event served as a launchpad for CJ ENM's new unscripted series 'Planet B,' set to debut in 2025.

8. Conclusion

  • The K-pop industry's current landscape reflects a blend of dazzling success and notable challenges. Prominent achievements, such as the dominance of NewJeans in the K-Brand Index and significant chart-topping hits demonstrate the genre's widespread appeal and cultural integration. Meanwhile, plagiarism controversies involving artists like TWS, BLACKPINK, and NewJeans highlight the ongoing struggles with maintaining creative integrity and fan trust. The financial volatility faced by key agencies like Hybe Corp. and YG Entertainment, exacerbated by military service mandates and market dynamics, underscores the industry's economic unpredictability. Iconic groups like BIGBANG continue to shape the genre, significantly impacting music and fashion, thereby cementing their legacy. However, future prospects appear promising as agencies pivot towards Western markets and diversify their strategic endeavors. Practical applications of these findings include improving creative practices to avoid legal issues, bolstering transparency to rebuild fan trust, and adapting to shifting market trends for sustained financial health and global influence.

9. Glossary

  • 9-1. NewJeans [K-pop Group]

  • Formed by ADOR, a subsidiary of HYBE, NewJeans is noted for topping the K-Brand Index, achieving significant milestones in album sales and chart performances. Despite facing plagiarism allegations, they maintain strong influence in fashion and as cultural ambassadors.

  • 9-2. BIGBANG [K-pop Group]

  • Influential South Korean boy band known for hits like 'Lies' and 'Fantastic Baby.' The group's leader, G-Dragon, has significantly impacted both the music and fashion industries, contributing to K-pop's international popularity.

  • 9-3. G-Dragon [Artist]

  • Leader of BIGBANG, known for his solo career and ventures in fashion. G-Dragon's influence extends across multiple industries, and he holds numerous awards for his contributions to music and culture.

  • 9-4. K-Brand Index [Ranking System]

  • A ranking system curated by the Asia Brand Research Institute, evaluating idol groups based on extensive data analysis from various pop culture surveys.

10. Source Documents