[Behind the K-pop Scene] 'K-pop is all about money'

Behind the glitz and glamour of K-pop lies a business reality driven by fierce competition and substantial financial investment. While K-pop idols shine on stage, producers navigate challenges behind the scenes, especially when securing the funds to sustain their artists' careers.

"K-pop is all about money," said Shin Jong-oh, 48, a director at the World K-pop Center and executive producer of the girl group project BlingOne, during an interview with The Korea Herald, on Oct. 10.

"The production cost of creating a K-pop group typically starts at around 3 billion won to 5 billion won ($2.17 million - $3.62 million), which usually covers the release of two to three albums. The real expense isn’t in the training — it’s in making the group successful. To achieve that, releasing five to 10 albums within one or two years is essential, and along with marketing, this can cost around 5 billion won."

Shin began his career in entertainment as a road manager in February 2000, at the very bottom of the managerial system unique to K-pop.

"A road manager drives idols to their engagements and takes care of them. Next is the field manager, who plays a central role in managing the artist’s schedule, checking times and coordinating routes. Finally, there's the schedule manager, who oversees day-to-day activities and contacts broadcasters to arrange appearances for the artist," Shin explained.

In his 24 years in the K-pop industry, he has worked his way from the bottom to the top, managing artists like Jaurim, Sung Si-kyung, Roller Coaster and Clazziquai.

"My role as a producer now is to secure investment and oversee the entire process of launching a K-pop group, whether domestically or internationally," Shin said.

Shin points out that the role of producers has changed significantly, especially in larger K-pop agencies, where responsibilities are divided into different departments.

"In the past, schedule managers handled meetings with composers and selected songs, but now the A&R team takes on that role, managing the overall album concept and song selection," he said. "For large entertainment companies, events and concerts are handled by performance and A&R teams, while field managers focus solely on broadcast schedules. Communication happens directly with the CEO."

This highly organized system is unique to South Korea, according to Shin.

"In Japan, for example, artists often don’t have a manager until they’ve reached a certain level of success. Many support themselves with part-time jobs until they become popular enough to sign with a label, at which point they receive a salary," Shin said. "But South Korea’s K-pop system is much more comprehensive, handling everything from plastic surgery and skincare to intensive training. It sets South Korea apart."

Despite K-pop’s global success, Shin warns that the reality for producers is far from glamorous.

“People think producers make a lot of money, looking at big names like Hybe’s Bang Si-hyuk or JYP Entertainment’s Park Jin-young. In truth, producers have an even slimmer chance of success than idols," he said. "Producing an idol group often plunges producers into debt, sometimes several hundred million won. Achieving success in the idol industry is like winning the lottery -- it’s extremely rare and uncertain."

“While idols struggle with obscurity when things don’t go well, producers are left shouldering the burden of the debt. Even when a group succeeds, it is typically the idols who earn the most. Meanwhile, many producers face financial hardship and, in the worst cases, some even end their lives due to the overwhelming pressure,” Shin added.

The veteran producer explains that the first two years after launching a K-pop group are critical.

"The success or failure of a group is usually determined in that time. Afterward, it’s all about maintaining the artist’s popularity," he said. "Capital is crucial in the K-pop industry. Companies like Hybe were on the brink of collapse until BTS’ success turned things around. JYP Entertainment was saved by Twice’s breakout."

In the past, success depended heavily on securing top composers, choreographers and music videos. But today, it’s all about presentation and marketing.

"Producers are not fortune tellers -- we can’t predict who will succeed. Timing has to be just right," Shin added.

Looking ahead, Shin predicts his role as a producer may disappear as a new generation of versatile K-pop artists takes over.

"Younger K-pop singers are doing everything themselves, from songwriting to shooting music videos and marketing their albums on social media. Management companies will survive, but people like producers and choreographers may lose their jobs," Shin said. "This is already happening."

This article is the third in a special interview series exploring the journeys of key K-pop industry professionals: a songwriter, trainer, producer and newly debuted K-pop idol. They discuss their roles, the competitive nature of the industry and the business mechanics behind K-pop’s global success. -- Ed.