The Korean Wave, a global phenomenon, is facing an unexpected crisis. Despite South Korea's dominance in entertainment, with BTS and Parasite achieving unprecedented success, there's a growing concern about the future of its two powerhouse industries: cinema and K-pop.
The Unraveling of a Cultural Superpower
South Korea's cultural exports have been thriving, with a record-breaking $15.18 billion in revenue in 2024. However, beneath this success, a fundamental transformation is taking place. The country's film and music industries, once the driving force behind the Korean Wave, are now grappling with survival strategies that threaten their creative foundations.
Cinema's Dramatic Decline
The decline in cinema attendance is stark. Admissions for both Korean and international films have plummeted by 45% since 2019, with box office revenue dropping from $1.3 billion to a mere $812 million. Investment in the industry has slowed, and Korean distributors are predicting a significant drop in locally produced films, from over 40 to just 20 in 2025. Director Kim Han-min has warned that the sector is "almost collapsed."
Professor Jason Bechervaise attributes this to a structural weakening, citing years of tightening margins and rising costs. He explains how this has impacted mid-budget productions, where new directors and established filmmakers once thrived. Now, much of the talent is migrating to streaming platforms, attracted by steadier investment and more predictable production schedules.
The theatrical "holdback window" has also shortened, leaving audiences with little incentive to purchase tickets. This strain has led to historic consolidation, with major cinema chains planning to merge their screens.
K-pop's Reckoning
But it's not just cinema that's under strain. K-pop, a long-standing cultural export, is also facing uncertainty. Physical album sales dropped by 19.5% in 2024, the first decline in a decade, and this trend is projected to continue. Major agencies, however, have found a new source of revenue in global touring, with concert revenues surpassing traditional album sales.
Professor Areum Jeong believes that companies have prioritized their most dedicated fans, catering to the core fandom and forgoing the idea of widespread public appeal. This narrow focus, she argues, has influenced idol recruitment, training, and marketing strategies, and is now being replicated by industries beyond Korea.
The question remains: Can this approach produce the global phenomena that defined K-pop's golden era, like BTS and Blackpink?
Smaller agencies, once crucial for experimentation and diversity, are struggling to survive, facing rising production costs and a shrinking share of fan spending. Additionally, the global success of Korean cultural ideas doesn't always translate into profits for Korean companies.
Netflix's animated hit, "KPop Demon Hunters," became the platform's most-watched animated film, but it was an American production based on Korean aesthetics, directed by Korean-Canadian Maggie Kang. Professor Jeong describes it as a "de-territorialized, hybrid idea of K-pop" rather than an authentic Korean product, suggesting that Korean cultural concepts are now portable and can be reproduced internationally without Korean involvement.
Despite this, audiences still seek real-world encounters with Korean culture. After the film's release, there was renewed interest in Korean museums, food brands, and cosmetics featured in the film.
Bechervaise notes how creative dynamics have shifted. American studios and Korean-diaspora creators are now drawing on Korean cultural elements, with works like "Minari" and "Demon Hunters." He observes, "Korea had beaten Hollywood, but now it's as if Hollywood is beating Korea at its own game."
The government has responded with a five-year, £26 billion cultural investment plan, aiming to expand South Korea's global cultural footprint and strengthen various cultural industries. President Lee Jae Myung has appointed K-pop mogul Park Jin-young to co-chair a new presidential cultural committee to promote Korean pop culture internationally.
Major agencies are expanding overseas, but critics argue that this focus on expansion risks neglecting the infrastructure that fueled South Korea's cultural rise and may erode the cultural authenticity that initially attracted international audiences.
Professor Jeong believes the industries will continue to generate profits, but she warns that financial success alone won't guarantee creative renewal. She concludes, "The Korean entertainment industry will profit, but creating something like 'KPop Demon Hunters' that captivates audiences worldwide will be challenging."
What are your thoughts on the future of South Korea's entertainment industries? Do you think they can regain their creative spark, or is this a sign of a broader shift in the global cultural landscape?
