ATEEZ has emerged as a powerhouse in the K-pop industry, especially within the U.S. market, where they have broken significant records and achieved milestones typically reserved for groups backed by the “Big Four” entertainment companies, including SM, JYP, YG, and HYBE. Their historic accomplishment of being the first unaffiliated group to reach the pinnacle of the Billboard 200 chart is a testament to their immense talent and hard work. In 2024, ATEEZ made waves as the first K-pop boy group to grace the Coachella stage, further solidifying their rising global fame. Additionally, their 11th mini album, Golden Hour: Part 2, secured a second No. 1 spot on the Billboard 200, yet they remain surprisingly underrepresented in Korea’s domestic music landscape.

The sales figures for their latest album are nothing short of extraordinary, with over one million copies sold in just the first week. This impressive achievement highlights ATEEZ’s ability to connect with their international audience. However, when it comes to their streaming performance in Korea, the data paints a contrasting picture. ATEEZ’s absence from Korea?s YouTube Music Hot 100 chart and the major local streaming platforms, including Melon, Genie, Bugs, and FLO, raises questions about their domestic visibility. Spotify statistics reveal that their strongest streaming cities are in Southeast Asia, particularly Jakarta, Bangkok, Tokyo, Kuala Lumpur, and Singapore, while Seoul, the heart of K-pop, is noticeably missing from this list.

Stray Kids, managed by JYP Entertainment, find themselves in a similar situation. Their album HOP has made history in 2024, becoming the first album to achieve six consecutive No. 1 spots on the Billboard 200 chart for a group. This remarkable accomplishment has led to the announcement of a 20-stop global stadium tour set for 2025, which underscores their expanding international appeal. However, in their home country, the title track “Chk Chk Boom” has not reached the top of the major streaming charts, reflecting a disconnect similar to that experienced by ATEEZ. Stray Kids also see their strongest Spotify performance coming from international markets, including Indonesia, Japan, Chile, Brazil, and Malaysia.

The global phenomenon of K-pop is largely fueled by its dedicated and passionate fanbase. According to the IFPI?s Global Music Report, albums from SEVENTEEN, particularly FML, and Stray Kids? 5-STAR ranked as the top two global album sales for 2023. The IFPI?s Global Artist Chart also saw SEVENTEEN, Stray Kids, Tomorrow X Together, and NewJeans featured in the Top 10. This global success, however, highlights a significant trend: the domestic K-pop market in Korea is increasingly diverging from its international success, raising questions about the sustainability of this duality.

Recent data from the Korea Culture and Tourism Institute (KCTI) underscores this disparity. In 2023, the overseas revenue for K-pop reached an impressive 1.2377 trillion KRW (approximately $950 million USD). Notably, companies like HYBE reported that 63.3% of their earnings in the first half of 2023 came from international markets, while JYP and YG followed with 52.2% and 48.6%, respectively. This data positions Korea as the fourth largest consumer of K-pop, trailing behind Japan, the U.S., and Indonesia, illustrating the shifting dynamics in the industry.

The Shifting Landscape of K-pop’s Visibility in Korea

To fully grasp this phenomenon, it’s essential to revisit the mid-2010s, a period marked by K-pop’s incredible rise in the U.S., driven largely by BTS?s monumental success at the Billboard Music Awards and their dominance on Western charts. During this time, K-pop thrived in Korea, with major acts like BLACKPINK, TWICE, EXO, and SEVENTEEN leading the charge, while popular audition programs such as Produce 101 captivated the audience and contributed to K-pop’s domestic appeal. This era laid the foundation for the genre?s global expansion.

Paradoxically, as K-pop’s international presence expanded, its local appeal began to diminish. The lack of a reliable official chart reflecting Korea?s music industry has significantly impacted the perception of local artists. Once-reliable indicators of popularity, such as real-time charts on platforms like Melon and Genie, have lost credibility due to scandals related to chart manipulation and ballot rigging in audition programs. These controversies have significantly eroded public trust in K-pop as a whole, leading to a complex and multifaceted industry landscape.

By 2018, the K-pop industry shifted focus from appealing to a broad audience to catering specifically to dedicated fanbases. This shift has resulted in staggering album sales, with physical album sales exceeding 116 million units in 2023?an astonishing tenfold increase over the last decade. Billboard 200 chart-topping acts, which were once a rarity, now include a growing list of K-pop groups such as SuperM, Tomorrow x Together, and NewJeans, showcasing the genre’s evolving landscape.

Anticipating the Future: K-pop Strategies for 2025

The evolution of K-pop into a fandom-centric business model has fundamentally transformed its operational strategies. Entertainment companies are now placing greater emphasis on retaining and nurturing existing fanbases rather than attempting to attract casual listeners. The music produced is increasingly designed to reinforce a group’s identity, focusing on deepening the connection with their most loyal supporters. Global promotions, illustrated by the massive stadium tours of BTS and BLACKPINK in the U.S. and Japan, highlight this trend, with rising groups like Stray Kids and ATEEZ at the forefront of self-produced artistry.

In Korea, K-pop activities are evolving to resemble fan service more than ever before. Despite low domestic ratings, shows like Music Bank, M Countdown, and Inkigayo remain vital platforms for launching new songs and generating live performance clips, which are crucial for social media channels like YouTube. This shift indicates that while K-pop may not cater to a general audience anymore, its transformation into a niche-driven, global phenomenon is undeniable and continues to thrive.

Nevertheless, not all groups experience this disconnect between international success and domestic visibility. Artists such as aspea, IVE, SEVENTEEN, and NewJeans continue to dominate Korean media, achieving remarkable commercial success within their home country. Overall, K-pop’s revenues continue to rise, largely fueled by its international market, proving the genre’s potential for sustained growth.

As K-pop’s popularity expands globally, its strategic approach continues to evolve. The incorporation of English lyrics, international artist collaborations, and streamlined promotional cycles reflect a clear shift towards the global stage. Data from Circle Chart indicates that the percentage of English lyrics in girl group releases reached 41.3% in 2023, marking a significant increase of nearly 19% since 2018. For boy groups, this figure stood at 24.3%. Major comebacks are now frequently followed by world tours, with U.S. talk shows often acting as debut platforms for new releases, further solidifying K-pop’s global reach.

The pressing question remains: as K-pop increasingly prioritizes global markets, can it successfully balance domestic recognition with international acclaim? Will it manage to cultivate a universal appeal akin to that of Latin music, ensuring sustainable support both domestically and globally? The dual identity of K-pop, with its paradoxical success, presents both challenges and exciting opportunities for the future of the industry.

This article is courtesy of Billboard Korea.