Korean Music Companies Are Exporting More Than K-Pop: How They’re Changing the Global Music Business

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The next step in K-pop's growth may lie not in music itself, but in exporting K-pop's disciplined development, production and promotion model.

in a single day. For a company with grand ambitions to build off of the success of BTS, “Like Crazy” was an important validation.The music industry should take note, too. HYBE did with Jimin what all South Korean music companies are attempting with increasing urgency: ride the wave of K-pop’s global success by expanding outside of Korea and build up operations in the United States, the world’s largest music market.

Exporting is what South Korea does best. “After the Korean War, the only way to survive was to export things,” says Cho. Over the last three decades, the success of companies such as Samsung, LG and Hyundai has turned the country of 52 million into a top 10 exporter, according to the World Bank. But in recent years, South Korea has become known not just for its exports of high-tech products and manufactured goods, but as a global entertainment dynamo as well.

South Korean music companies have become international powerhouses by drawing on hip-hop, R&B and pop music and selling the K-pop blend of these genres back to fervent fans in the United States, Japan and Europe. But to compete globally with larger companies, the South Korea approach to the music business, and not necessarily the music itself, could be the deciding factor.

To learn the U.S. market, South Korean companies have partnered with U.S. labels to distribute, market and promote their music. HYBE has a joint venture with Universal Music Group’s Geffen Records. JYP Entertainment has teamed with UMG’s Republic Records to form the global girl group America2Korea, or A2K.

These U.S.-Korean partnerships have also given domestic labels a chance to learn the K-pop method of A&R. To, president of Imperial Music, a new division of Republic Records, the JYP partnership has provided insight into “what it is to build a fandom and foster it through immersive packaging and increasing the collectability of the products.” Mendlinger is impressed with JYP’s attention to detail and ability to build storylines for their artists.

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