Is the K-pop bubble bursting? The industry's rapid growth streak encountered a setback in 2024, with sales and exports of physical albums showing signs of stagnation, data showed Thursday.

Album exports reached $291.8 million last year, a mere 0.55 percent increase from 2023, according to trade statistics from the Korea Customs Service.


The K-pop market had been showing double-digit growth rates in recent years, especially during the Covid-19 pandemic period when exports soared from $74.6 million in 2019 to $231.4 million in 2022.

In 2024, Japan remained the top destination for exports at $89.8 million, followed by the United States at $60.29 million and China at $59.79 million. These three markets collectively accounted for 72.8 percent of total K-pop album exports.

Despite an ongoing economic downturn and the Chinese government's continued tacit ban on Korean pop culture products, exports to China surged by 76.4 percent last year compared to 2023. In contrast, exports to Japan fell by 24.7 percent over the same period.

Physical album sales also dropped to 98.9 million copies in 2024, a decline of 21.3 million compared to 2023, according to data from Circle Chart, a leading local tracker of album sales.

Industry experts attribute the downturn to a reduction in aggressive marketing tactics, which had previously drawn criticism for undermining the industry's long-term sustainability.

The economic impact has been felt by major entertainment companies. HYBE and SM Entertainment reported lower operating profits in the third quarter of 2024 compared to the previous year, while YG Entertainment reported operating losses.

Despite the challenges, the industry remains optimistic about a potential rebound in 2025.

The anticipated return of popular groups, like BTS and Blackpink, coupled with the debuts of new acts from major labels, is expected to reinvigorate the market.

BTS members Jin and J-Hope have already completed their mandatory military service, and the remaining five members — RM, V, Jimin, Jungkook and Suga — are set to finish their service in June.

Blackpink plans to begin working on new songs this spring and launch a world tour this summer, a peak season for K-pop concerts.

Several new groups are also slated to debut this year. Among them are KickFlip, a new boy group from JYP Entertainment, girl group Hearts2Hearts and British boy band dearALICE of SM Entertainment. HYBE also aims to debut a Latin-based K-pop act within the year.

BY YOON SO-YEON, YONHAP [yoon.soyeon@joongang.co.kr]