Manufacturing Stardom: The K-Pop Business Model and its Unmatched Success in Asia | Nicole Chen

In today’s popular music, overnight success stories dominate headlines — one viral TikTok, and suddenly, an artist skyrockets to fame. However, overnight stardom is foreign to K-pop, where thoroughly trained and strategically marketed idols enter the limelight.

Over the last three decades, South Korea’s entertainment companies have developed a methodical process for transforming talent into a multi-billion-dollar cultural export. Upon signing with these companies, selected trainees are placed under restrictive contracts that enforce intense training programs, curated identities, and behaviors geared toward fan engagement and commercial success. Despite potential misgivings about this process, it works. In the International Federation of the Phonographic Industry’s 2019 Music Listening Report, K-pop was ranked as one of the most popular music genres in the world (Herman, 2023). As K-pop dominates the international music scene, the West has yet to fully replicate its model — with this militaristic approach to idol-making remaining largely confined to Asia. This begs the question: Could this systematic way of producing stardom work in the Western music industry, or does it only thrive within its own culture?

The K-pop industry draws from the Japanese idol model and contemporaneous Western musical influences — a mix that first became evident in the 1990s with Korean hip-hop group Seo Taiji and Boys. Lee Soo-Man, the founder of SM Entertainment, formulated the structure of K-pop, allowing it to expand into the global genre it is today. Many other entertainment companies, such as JYP and YG, adopted this business model to focus on discovering and training artists within controlled environments — ensuring these artists were both musically talented and palatable to commercial audiences.

The industry follows a unique recruitment process involving the scouting and auditioning of children ages 8–16, prioritizing moldability, youthful appearance, and potential career longevity. Hopefuls endure multiple audition rounds where talent, visuals, and adherence to strict beauty standards determine their fate. Those who make the cut enter a grueling boot camp-style trainee system — a form of pseudo-individualism (Wang) — spending years perfecting their skills while living under strict surveillance, facing intense competition amongst peers, and sometimes being coerced into undergoing cosmetic procedures. Survival shows have turned this process into a public spectacle, allowing fans to vote on who debuts in K-pop’s most prominent groups.

Korean entertainment companies exert significant power over their artists, especially compared to their Western counterparts. These companies restrict idols’ autonomy, dictate their professional and personal schedules, and meticulously manage their public image.

Recently, Chappell Roan delivered a speech while accepting Best New Artist during the 2025 Annual Grammy Awards, sparking controversy online. In her speech, Roan called for labels to provide “livable wages and health care” and questioned, “Labels, we got you, but do you got us?” Rather than facing backlash, Roan’s stance was met with widespread acclaim (Aswad, 2025).

Another high-profile case involving Taylor Swift’s dispute over her master recordings demonstrates the public and legal support available to artists challenging unfair conditions and corporate practices. Swift criticized the sale of her master recordings to Scooter Braun — an American record executive and talent manager — and the public eagerly sided with her despite the disruption within the music industry. Swift’s stance demonstrates how artists in Western culture can mobilize fans effectively to support their rights, even when opposing powerful corporations.

In contrast, ADOR and NewJeans became embroiled in controversy with parent company HYBE Corporation after allegations surfaced that HYBE mistreated the artists. However, reflecting a common trend in South Korea, these allegations received limited public support for NewJeans. Unlike in the United States, where the public generally sympathizes with the artist, many members of the Korean public backed HYBE’s attempt to assume complete creative control over ADOR (and consequently, NewJeans). This difference in cultural perspective on the often-opposing interests of artists and their labels may both stem from and reinforce the strict contractual terms K-pop artists often face.

Confucian principles emphasizing hierarchy and collectivism significantly shape South Korea’s societal structure. In Korean culture, collectivism reinforces how an individual’s rights often take a back seat to society’s well-being and collective good (Park, 2018). In contrast, Western cultural structures promote an egalitarian model, prioritizing the sanctity of the individual even amid the competing interests of societal actors. Social hierarchy is a prominent feature within South Korean society, especially in corporate culture. Junior employees are expected to obey and show respect to their seniors, often tolerating unfair treatment. This sense of hierarchy — and its ties to Korea’s traditional yet omnipresent collectivism — has been strategically integrated into the development of the K-pop industry, reinforcing a rigid cultural framework where respect for authority maintains a supposedly harmonious environment (Liu, 2024).

The rigid social hierarchies and collectivist mindset in South Korea not only shape public attitudes toward idols but also reinforce the industry’s contractual power over them. Part of this power is reflected in the substantial financial debt idols accumulate during their training period, referred to as “trainee debt” (Mendoza, 2023). This debt acts as both a financial and contractual barrier, tying idols to their agencies to compensate for the companies’ investment in their careers. The “trainee debt” initiates a cycle of financial dependence, making it challenging for idols to earn money as much of their income goes toward repayment — often resulting in longer, more restrictive contracts.

To counter this imbalance of power, the Korea Fair Trade Commission (KFTC) established the seven-year contract renewal point as a legal standard in South Korea to prevent excessively long and exploitative contracts in the country’s music industry (Segaram, 2020). Reforms aimed to reduce contractual cancellation fees and immediate penalty payments. Before this regulation, idols were bound by unfair, long-term contracts lasting over 10 years, granting companies excessive control.

Social media, alongside increased contractual regulation, has emerged as a source of momentum in favor of artists. Recently, TikTok partnered with South Korea’s biggest streaming service, Melon, to allow emerging and independent artists a gateway to public attention (Dalugdug, 2024). By giving creators a platform to promote music outside of traditional systems, it is evident that South Korea’s corporate gatekeepers are beginning to lose some of their bargaining power. As the rise of social media and digital platforms continues to transform music distribution, musicians are no longer limited to relying on entertainment companies for exposure. Over time, this trend could pressure South Korean entertainment companies to adopt more flexible contracts and terms that prioritize artists’ needs and well-being.

K-pop’s meticulously structured stardom system — rooted in discipline, collectivism, and corporate oversight — has propelled South Korea and its music industry onto the international stage. Yet, with the rise of digital platforms transforming artist promotion and exposure, the future of global music may not adhere to a single model but rather emerge as a fusion of approaches. As the industry evolves, the balance between artistic freedom and corporate structure will continue to shift — shaping the next phase of the global music industry.

Sources Consulted:

Herman, T. (2023, October 4). K-pop ranked as one of the most popular genres in the world, according to IFPI 2019 Music Listening Report. Billboard. Link

Wang, Z. (n.d.). Research on Korean Idol-Making Industry Based on Culture Industry Theory. ResearchGate. Link

Park, S. (2018, November 5). Transformation of Korean Culture from Collectivism to Egotism. The Korea Herald. Link

Liu, R. (2024). The Business Model and System of the Korean Music Industry within a Collectivist Society. SHS Web of Conferences. Link

Aswad, J. (2025, February 7). Chappell Roan Challenges Writer Who Slammed Her Grammys Speech to Match $25,000 Donation for Struggling Musicians. Variety. Link

Mendoza, I. (2023, August 18). Treasure Reveals the Biggest “Perk” of Being YG Trainees: “No Trainee Debt”. International Business Times. Link

Segaram, M. (2020, March 25). The Contracts Behind K-pop. Woroni. Link

Dalugdug, M. (2024, October 16). TikTok Partners with South Korean Streaming Service Melon to Expand “Add to Music App” Feature. Music Business Worldwide. Link