Small and Mid-Sized Agencies Launched 90% of K-Pop Groups, but Their 7-Year Survival Rate Was One-Third That of Major Agencies

Analysis of 1,159 Idol Groups That Debuted Over 30 Years
Average Activity: 3.6 Years for Small Agencies, 7.4 for Major Agencies
Share Selling 1 Million Albums: 30-Fold Gap

The photo is not directly related to the article. The group RESCENE performs the title track at a showcase celebrating the release of its fourth mini-album, "PULSE," at Blue Square in Yongsan-gu, Seoul, on the afternoon of the 3rd. Yonhap News.

Nine out of every 10 K-pop idol groups that debuted over the past 30 years were launched by small and mid-sized agencies. However, their chances of remaining active seven years after debut were only about one-third those of groups from major agencies. Groups under major agencies were active for more than twice as long on average, and the share that sold at least 1 million copies of a single album was more than 30 times higher. The findings suggest that small and mid-sized agencies, which underpin the breadth of the K-pop industry, face structural limits in fostering the long-term growth and commercial success of their artists.

According to the music industry on November 10, Kim Jeongseop, a professor in the Department of Cultural Industry and Arts at Sungshin Women's University, presented these findings in a paper analyzing 1,159 idol groups that debuted in South Korea between 1996 and 2025. The paper was published in the Journal of the Korea Entertainment Industry Association on October 30.

Of the groups analyzed, 1,042 (89.9%) came from small and mid-sized agencies, 8.9 times the 117 groups (10.1%) from major agencies. The study classified major agencies and affiliates of large conglomerates, including HYBE, SM, JYP, YG, CJ and Kakao, as major agencies.

However, the average period of activity for groups from major agencies was 7.4 years, more than twice the 3.6 years for groups from small and mid-sized agencies. The estimated probability of remaining active, based on statistical survival analysis, was 86.3% for major-agency groups and 66.5% for small- and mid-sized-agency groups one year after debut. Five years after debut, the figures were 65.2% and 28.7%, respectively, widening the gap.

Seven years after debut, the probability stood at 59.0% for groups from major agencies and 20.1% for those from small and mid-sized agencies, a gap of 38.9 percentage points. The probabilities of remaining active after 10 years were estimated at 49.8% and 13.2%, respectively.

Polarization was also pronounced in album sales. The share of groups that had sold at least 100,000 copies of a single album was 57.3% for major-agency groups and 6.6% for groups from small and mid-sized agencies, an 8.6-fold difference. A total of 24 groups (20.5%) from major agencies and seven (0.7%) from small and mid-sized agencies had sold at least 1 million copies, a 30.5-fold gap in the proportions achieving that milestone.

Professor Kim called for stronger policy support for small and mid-sized agencies as their artists progress through growth stages after debut. Drawing on input from seven experts, he identified 10 policy tasks across five areas: finance and investment, production and distribution, overseas marketing, and performance support, among others. Of these, policy funds and investment support linked to securing intellectual property (IP) received the highest score, at 9.57 out of 10.

"To ensure the industry's sustainability, support is needed not only when new acts debut but also for their growth and long-term activities after debut," Professor Kim said. "It would be desirable to build an industrial foundation that enables sustained growth and reinvestment through links with policy finance and investment."

This content was produced with the assistance of AI translation services.