The year 2023 continued to spotlight the remarkable activities of K-pop artists. This year, groups beyond BTS and BLACKPINK made significant global strides, marking a year of meaningful expansion.
The leading forces behind this K-pop momentum were the 'Big 4' of the Korean music industry: HYBE, SM, YG, and JYP. These companies enjoyed satisfying results thanks to the performances of their flagship artists.
Meanwhile, SM entered the 'SM 3.0' era as its total producer Lee Soo-man left, and Kakao became the largest shareholder. YG, which faced a crisis with the departure of several key artists, signed a group activity contract with BLACKPINK, taking a moment to breathe. The changes faced by these 'Big 4' companies this year were also prominent.
BTS Pushed Forward, SEVENTEEN & NewJeans Backed Up... HYBE, This Year's 'Big 4' Battle Winner
HYBE had the most satisfying year among the 'Big 4' companies.
With BTS achieving overwhelming success through active solo endeavors before their military enlistment, SEVENTEEN setting new K-pop records, and NewJeans sweeping the music market, the artists under HYBE demonstrated a diligent trajectory. Artists like TOMORROW X TOGETHER, ENHYPEN, and LE SSERAFIM also bolstered HYBE's high-flying status with significant achievements in the domestic and international music market.
Boosted by this, HYBE recorded its highest-ever quarterly sales this year. HYBE's revenue was 537.9 billion won, and its operating profit was 72.7 billion won in the third quarter.
This performance was significantly influenced by album sales and concert revenues of BTS's V and Jungkook, SEVENTEEN, and NewJeans. For BTS, solo albums released by Jungkook and V crossed 2 million in initial sales (earlier this year, albums released by Jimin and Suga surpassed the million-seller mark), and Jungkook's digital singles 'Seven' and '3D' ranked first and fifth respectively on the U.S. Billboard's main single chart, 'Hot 100'.
SEVENTEEN broke the K-pop record by surpassing 5 million initial sales with their mini-album 'SEVENTEEN's Heaven' and demonstrated their overwhelming ticket power through their tour. TOMORROW X TOGETHER, ENHYPEN, LE SSERAFIM, and NewJeans also made remarkable achievements with their tours and album releases, solidifying their position as pivotal artists under HYBE.
With all members of BTS, the flagship artists of HYBE, entering military service, they have officially started their 'military hiatus.' The target for a full group comeback is the second half of 2025. However, thanks to the subsidiary label artists who have steadily expanded their foothold over the year, HYBE is expected to maintain its strong presence in the K-pop market next year as well.
SM Without Lee Soo-man, Transformation in the Midst of Acquisition Battle with Kakao's Embrace
SM has had a tumultuous time amidst a fierce battle for management rights after its total producer Lee Soo-man left earlier this year.
After HYBE acquired the shares held by former SM total producer Lee Soo-man, becoming the largest shareholder, the relentless battle for management rights between HYBE and co-CEOs Lee Sung-soo and Tak Young-jun, who partnered with Kakao, ended with Kakao emerging victorious. HYBE announced in early March that it would halt the acquisition process of SM, and Kakao subsequently became the largest shareholder of SM through a successful additional share acquisition.
With Kakao becoming the largest shareholder, SM has smoothly opened the 'SM 3.0' era. The most significant change was the introduction of a multi-production center/label system. Through this, SM diversified its album production system by production center and conducted simultaneous comeback activities for its artists.
The changes were positive. SM achieved its highest-ever quarterly results this year, driven by an increase in album and music sales. The performance was carved out by increased album and music sales of its artists and the hosting of offline concerts. Artists like NCT Dream, EXO, NCT, NCT 127, RISE, and aespa achieved global popularity and contributed to a stable year for SM.
BLACKPINK's Laughter and Tears at YG
This year, YG had its ups and downs, mostly due to BLACKPINK.
While enjoying the astronomical revenue from BLACKPINK's world tour and the global hit of Jisoo's first solo single, YG had anxious days in August as the season for the members' contract renewal approached. With rumors of members not renewing with YG emerging, the company's stock price took a hit, and amidst the departure of significant artists like BIGBANG, 'crisis' rumors surfaced.
However, in December, YG announced the group activity contract renewal with BLACKPINK, taking a momentary sigh of relief. However, the individual exclusive contract statuses of the members are yet to be decided.
Apart from BLACKPINK, the absence of a strong pillar artist for YG is a fatal weakness. Although current artists like TREASURE and AKMU are doing well, it's insufficient to replace BLACKPINK's position. The rookie girl group, BABYMONSTER, which was expected to carry YG's future, has yet to make a significant impact beyond global indicators based on its buzz.
JYP's Well-Groomed Stray Kids, No Need to Envy the Top Ten
JYP spent a stable year powered by the soaring career of its flagship boy group, Stray Kids.
Stray Kids continued their unstoppable journey this year, setting various records. They successfully secured the number one spot on the U.S. Billboard's main album chart, 'Billboard 200,' with '5-STAR' and 'Rock-STAR.' Notably, achieving 1st place for four consecutive albums demonstrated Stray Kids' overwhelming presence.
In addition, Stray Kids became the second K-pop boy group after BTS to enter the 'Hot 100' chart of Billboard and won the 'Best K-pop' category at the '2023 MTV Video Music Awards' held in September, continuing their wide-ranging activities in the global market.
Along with Stray Kids, flagship girl groups like TWICE and NMIXX also recorded satisfying album sales and successfully conducted large-scale tours, contributing to JYP's revenue. Indeed, JYP recorded its highest-ever operating profit in the third quarter. JYP's third-quarter consolidated sales increased by 66.2% compared to the same period last year to 95.1 billion won, and operating profit increased by 50.9% to 27.5 billion won.
