K-Pop Business Model and Training Struggles

K-pop's business model prioritizes fan satisfaction, shaping artists to fit company concepts through extensive training and substantial investment.

### The Business of K-Pop: A Behind-the-Scenes Look
* 💼  K-pop's business model is optimized for fans, with companies often creating the artist concept before **scouting and training talent**.
* 💰  The cost of training a K-pop idol can range from **1 billion won ($724,000) over two years** to **5 billion won ($3.6 million) over three years**.
* 🎶  The industry's revenue streams include **music and album sales**, **intellectual property (IP)** from merchandise and advertisements, and **performance income**.
* 🌏  K-pop's global strategy is crucial, with some suggesting that to expand further, it may need to **slightly deviate from its traditional K-pop style**.
* 🏢  The market capitalization of the top four K-pop labels is approximately **13 trillion won ($9.3 billion)**, indicating **significant room for growth** despite the industry's global success.
* 🌟  Despite the challenges and investments, trainees and idols express their passion for the industry, with one idol sharing, "**I did worry while training for a while but held onto the dream that my time would come**."
* 🎤  Looking ahead, one idol hopes that in five to ten years, they will no longer feel nervous on stage and can simply **enjoy performing**.

Hello, we’re RIIZE. K-pop's business model is optimized for fans. K-pop is the music that can meet 
consumers' needs the fastest.  I think in K-Pop, it's not the 
artist that exists first,  but the idea from the company. After considering the team’s qualities 
and resources, we thought about what PR method would be  suitable for the current era.  From the casting stage, we discover 
talented kids  and train them according to the 
concept we have.  The agencies begin to find people who 
fit their concept,  or produce existing trainees to match 
a certain idea.  They inevitably end up being 
trained for a long time. I've even seen quite a few guys who quit 
during that process out of frustration.​​  They take dance and vocal lessons.  You can improve your appearance through 
weight loss or plastic surgery, take foreign language education, 
or you can spend

this period learning various things. I used to be a junior model. A large label saw a photo of me back then, and I was given a chance of casting and becoming an idol. I lacked singing skills, so I did a lot of basic vocal training. To improve on dancing, I did a lot of core workouts and dynamics training. I wanted to become an idol because I want to get love and attention from a lot of people. The money spent cultivating trainees varies from company to company, but they say it can take 1 billion won ($724,000) in two years or 5 billion won ($3.6 million) in three years. It is an industry that requires a lot of investment. I did worry while training for a while but held onto the dream that my time would come. I think we've come this far by continuing to work hard to do well. After joining the label, learning to dance and stuff was

a scary challenge, but I got to find joy in it. K-pop depends on how well you build and show the team fantasy. In the end, I think its global strategy depends on how well you show that. Since I was young, I liked dancing and music, and I liked doing things in a different environment, so I also felt optimistic moving to Korea from Japan. Actually, I have a desire to study English whenever I get the chance. Sungchan has this app on his phone where a new English word appears on the screen each time he turns it on, and you try to use English in daily life. He really tries to. That’s right. Even before their debut, we received unusual invitations from overseas for commercials and other advertisements. The main sources of revenue for Korean popular music are broadly divided into three categories. The first is revenue from music and album sales.

Second, there is IP revenue that comes from selling these goods or advertisements. The third is performance revenue. We communicate with our fans, BRIIZE, through an app called Weverse, and I think it's really nice to be able to immediately hear feedback from them and hear what they say. There are four major K-pop labels. However, the market capitalization of these four companies is only about 13 trillion won ($9.3 billion). Although there are many outstanding acts, K-pop is still absolutely lacking in terms of quantity. There is still a lot of room for further growth. They say in order for K-pop to become more mainstream, we may have to abandon a little bit of K-popness. I think our goal is to grow even little by little like that. Five years later, ten years later, I hope I no longer get nervous on stage. I hope I can just enjoy it by then.

Decoding the Business of K-Pop

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The Business Model and Training Process of K-Pop Idols

K-pop's business model is designed to meet the fast-paced demands of fans, where the company's idea takes precedence over the artists.

Trainees undergo extensive preparation, including vocal and dance training, and may invest significant time and money, with some facing challenges and frustrations along the way.

The K-pop industry requires substantial investments in cultivating talent, but it ultimately relies on hard work and dedication to succeed.

Building Joy in the Scary Challenge of K-Pop

K-pop's global strategy relies on effectively showcasing the team's fantasy.

Moving from Japan to Korea, there is optimism in embracing a different environment and a desire to study English.

Sungchan is dedicated to improving his English skills, using an app to learn new words.

The revenue for Korean popular music comes primarily from music and album sales, as well as overseas commercial invitations.

The Future of K-pop: Challenges and Aspirations

K-pop's major revenue streams come from album sales, IP, and performances, with a market capitalization of $9.

Despite outstanding acts, the industry still lacks quantity, leaving room for further growth.

To become more mainstream, there may be a need to evolve, but the goal remains steady growth.