K-pop industry’s rapid growth streak hits a snag last year

January 17, 2025

The K-pop industry’s rapid growth streak encountered a setback in 2024, with sales and exports of physical albums showing signs of stagnation, data showed Thursday.

Album exports reached US$291.8 million last year, a mere 0.55 percent increase from 2023, according to trade statistics from the Korea Customs Service. This marks a significant slowdown compared to the double-digit growth seen in previous years.

The industry had experienced a boom since the COVID-19 pandemic, with exports soaring from $74.6 million in 2019 to $231.4 million in 2022.

K-pop girl group BLACKPINK (Yonhap)
K-pop girl group BLACKPINK (Yonhap)

Japan remained the top export destination at $89.8 million, followed by the United States ($60.29 million) and China ($59.79 million). These three markets collectively accounted for 72.8 percent of total K-pop album exports.

Despite an ongoing economic downturn and the Chinese government’s continued tacit ban on Korean pop culture products, exports to China surged by 76.4 percent last year compared to 2023. In contrast, exports to Japan fell by 24.7 percent over the same period.

Physical album sales also declined, dropping to 98.9 million copies in 2024 by 21.3 million from 2023, according to data from Circle Chart, a leading local tracker of album sales.

K-pop boy group Seventeen is seen in this photo provided by Pledis Entertainment. (PHOTO NOT FOR SALE) (Yonhap)
K-pop boy group Seventeen is seen in this photo provided by Pledis Entertainment. (PHOTO NOT FOR SALE) (Yonhap)

Industry experts attribute the downturn to a reduction in aggressive marketing tactics, which had previously drawn criticism for undermining the industry’s long-term sustainability.

The economic impact has been felt by major entertainment companies. Hybe and SM Entertainment reported lower operating profits in the third quarter of 2024 compared to the previous year while YG Entertainment reported operating losses.

Despite the challenges, the industry remains optimistic about a potential rebound in 2025.

K-pop boy group Stray Kids is seen in this photo provided by JYP Entertainment. (PHOTO NOT FOR SALE) (Yonhap)
K-pop boy group Stray Kids is seen in this photo provided by JYP Entertainment. (PHOTO NOT FOR SALE) (Yonhap)

The anticipated return of popular groups, like BTS and BLACKPINK, coupled with the debuts of new acts from major labels, is expected to reinvigorate the market.

BTS members Jin and J-Hope have already completed their mandatory military service, and the remaining five members — RM, V, Jimin, Jungkook, and Suga — are set to finish their service in June.

K-pop boy group BTS is seen in this photo provided by BigHit Music. (PHOTO NOT FOR SALE) (Yonhap)
K-pop boy group BTS is seen in this photo provided by BigHit Music. (PHOTO NOT FOR SALE) (Yonhap)

BLACKPINK plans to begin working on new songs this spring and launch a world tour this summer, a peak season for K-pop concerts.

Several new groups are also slated to debut this year. Among them are KickFlip, a new boy group of JYP Entertainment; and girl group Hearts2Hearts and British boy band Dear Alice of SM Entertainment. Hybe also aims to debut a Latin-based K-pop act within the year.