K-pop Industry's Overseas Earnings Surpass $900 Million in 2023

The K-pop industry continues to solidify its global presence, with overseas sales reaching a record 1.24 trillion won ($893 million) in 2023, according to a report by the Korea Culture and Tourism Institute (KCTI). This marks the first time the industry's international earnings have exceeded 1 trillion won, reflecting a 34.3 percent increase from the previous year.

Key contributors to these earnings include physical album exports, which accounted for 31.4 percent (388.9 billion won) of the total, and overseas streaming services, which brought in 260.3 billion won, or 21 percent. However, the largest share came from overseas performance revenue, which amounted to 588.5 billion won, representing 47.5 percent of the total.

The growth in revenue can be attributed to several factors. The average annual growth rate from 2018 to 2023 shows a 35.2 percent increase in physical album exports and a 22.3 percent rise in revenue from overseas streaming services. Among the major entertainment companies like SM, JYP, YG, and Hybe, overseas performance revenue also grew by 35 percent annually. The restoration of normalcy post-COVID-19 in 2023 significantly boosted performance revenue, which saw a 65.6 percent increase compared to 2022.

KCTI's research, based on multiple sources such as the "Culture, Sports, and Tourism Export and Import Trends Report" and data from the Korea Music Copyright Association, also highlights the industry's future potential. With established artists making overseas debuts and the global music market continuing its nine-year growth streak, K-pop's international sales are projected to rise further in 2024.

Despite the promising outlook, KCTI raised concerns about the industry's reliance on sales-focused marketing strategies, such as photocards and entry chances for autograph sessions, which often lead to immediate disposal of purchased albums. Issues like self-replication and content homogenization were also noted as challenges that need addressing.

As the global music industry revenue hit $28.6 billion in 2023, a 10.2 percent increase from the previous year, K-pop's growth trajectory appears promising. However, the industry must navigate these challenges to sustain and enhance its global appeal.