From CNBC: 2024-04-16 20:09:56

Investors in the K-pop sector faced challenges with lower sales and profits due to dating scandals. The big four companies saw stock drops, with SM Entertainment taking a hit from Karina’s dating controversy. Despite this, all four companies reported higher revenue and profits for 2023.

Goldman Sachs expressed optimism, noting the market’s focus on album sales isn’t a true indicator of K-pop’s reach. Offline concert audience is a better metric, as album sales can be skewed. Concert attendance in Japan is seen as a key growth driver, with a significant fanbase growth opportunity.

K-pop’s global fanbase is growing, with groups like NewJeans and Le Sserafim attracting attention in the U.S. NewJeans even performed at Lollapalooza, drawing a large audience. Hybe’s expanded partnership with Universal Music Group indicates K-pop’s mainstream success globally. Goldman predicts continued growth for the sector.

Read more: NewJeans, Hybe and Coachella shows to lead turnaround in Kpop