K-Pop Groups Without Koreans… The Beginning Of “Hallyu 3.0”, Expected To Bring Economic Boom
“The entertainment industry in the era of ‘Hallyu 3.0’ is transitioning with ‘localization’ as the core keyword.”
The trend in the Korean entertainment industry referred to as “현지화” (localization) is to focus on debuting groups and artists directly in overseas markets instead of targeting the domestic market first and then expanding overseas. This strategy has been successful in achieving business results. This trend is seen as the entry into the “한류 (Hallyu) 3.0” era, a concept first proposed by the former SM Entertainment producer Lee Soo-man in 2011. “한류 3.0” represents the third stage of the Korean Wave, where Korean “culture technology” is transmitted to the world. This is achieved through collaboration with local companies and artists, creating joint ventures, and directly targeting overseas markets. Major Korean entertainment companies such as SM, JYP, and CJ ENM are all preparing or have debuted localization idols.
SM Entertainment and JYP Entertainment are some of the entertainment companies that have achieved success with localization strategies. JYP’s nine-member girl group “NiziU,” which debuted in Japan, was selected through an audition program jointly planned by JYP and Sony Music Japan. NiziU became the fastest female artist to hold a dome tour in Japan two years after their debut. JYP’s revenue increased from KRW 144.4 billion in 2020 to KRW 1.939 trillion in 2021 and accumulated to KRW 230.7 billion in Q3 2022 due to the success of localization groups. HYBE, SM, and JYP are all planning to debut localization groups in the second half of this year, with auditions taking place in the United States. SM, in particular, is planning to hold a survival audition program in the United States, which has the advantage of raising awareness of artists in the local market and reducing resistance to foreign artists.