K-pop’s overseas sales top 1 tln won for 1st time in 2023

The K-pop industry’s overseas sales surpassed 1 trillion won (US$722.28 million) for the first time last year, according to a government report released Wednesday.

The report by the Korea Culture & Tourism Institute, a state-run think tank under the culture ministry, showed that the industry’s combined revenue reached an estimated 1.2377 trillion won in 2023, a 34.3 percent increase from the previous year.

It marks the first time that the revenue figure has exceeded 1 trillion won.

The total is based on combined estimates of album exports and revenue from overseas streaming services and international concerts.

By sector, revenue from overseas performances made up the largest share at 47.5 percent, amounting to 58.85 million won. It was followed by album exports, which accounted for 31.4 percent, or 38.89 million won, and overseas streaming services at 21 percent, or 26.03 million won.

The estimated combined revenue generated from international concerts by six major K-pop companies, including Hybe, SM Entertainment, JYP Entertainment and YG Entertainment, recorded an annual average growth of 35 percent from 2018 to 2023.

In 2023, in particular, when the world returned to normalcy from the COVID-19 pandemic, revenue from overseas performances saw a significant increase of 65.6 percent from the previous year.

Exports of K-pop albums surged 7.6 times compared to 2017. After exceeding 100 billion won for the first time in 2019, the exports have continued to rise sharply, breaking 300 billion won in 2022.

The estimated revenue from the streaming services also jumped to 3.4 times the level of 2017. The increase in streaming revenue from regions outside of K-pop’s major market in Asia, including Europe and the Americas, indicated a diversification of the market.

“Overseas sales are expected to increase in 2024 as well, considering the diversification of K-pop’s overseas markets, the rise of new artists, and consistent efforts to expand globally,” the report forecast.