South Korea
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South Korean investment and management firm Beyond Music made its first acquisition of a North American music catalog by purchasing the rights to the music of Greg Wells, a Grammy-winning Canadian songwriter-producer whose credits includes music recorded by Adele, Taylor Swift, Dua Lipa, Katy Perry and Quincy Jones.
Wells’ career spans genres and decades. As a songwriter, Wells has credits on Aerosmith’s Nine Lives, Celine Dion’s Let’s Talk About Love, Adele’s 21 and John Legend’s Bigger Love. His production credits include The Greatest Showman: Original Motion Picture Soundtrack, Twenty One Pilots’ Vessel and the In The Heights soundtrack. The rights vary by title and include publishing rights, producing income rights, and master performance rights, according to a company spokesperson.
With the Wells acquisition, Beyond Music’s assets under management are 300 billion won ($230 million). Before this deal, Beyond Music – which claims to be “largest music IP management company in Asia” – spent more than $200 million on acquisitions in Asia, including the catalogs of FNC Investment, KNC Music and Interpark, to build a catalog of more than 26,000 songs. The company received funding from institutional investors including KB Securities, Base Investment, Maven Growth Partners and Dreamus Company.
The Wells acquisition was made by a newly established U.S.-based subsidiary, Beyond Music US, because domestic transactions are simpler for tax and legal purposes, and the company wants to pursue additional international opportunities in the future, according to the spokesperson. That said, Wells’ catalog covers many Western artists who are also popular in South Korea and throughout Asia. This company believes this acquisition is a “unique opportunity” and “a stepping stone for Beyond to become a global music rights management company,” the spokesperson added.
“Now is the time to become a global music rights management company by securing not only Asian, but also international music rights,” Beyond Music CEO Jangwon Lee said in a statement. Jangwon is also the CEO of Content Technologies and CT Investments, which debuted a K-pop focused exchange-traded fund, using the ticker KPOP, on the NYSE Arca Exchange in September. Beyond Music is a subsidiary of Contents Technology.
In a statement, Wells called it “an honor to be the first major music catalog acquisition for Beyond outside the Korean market. I am impressed with their commitment to creative freedom as well as maximizing the impact of my songs. I feel my work is in good hands with them.”
Wells won a Grammy in 2019 for Best Compilation Soundtrack for Visual Media for his production and engineering work on The Greatest Showman: Original Motion Picture Soundtrack (he spoke with Billboard’s Pop Shop podcast about the soundtrack in 2018). He also received Grammy nominations for his work on In the Heights, Katy Perry’s Teenage Dream and Andrew Lloyd Webber’s Cinderella.
TOKYO — This summer, the Japanese entertainment company Avex launched the seven-member girl group XG on a weekly music TV show — in South Korea, instead of Japan. The move was strategic. Rather than promote the group, which was five years in the making, at home, Avex leveraged Korea’s K-pop-rich media market to make an international splash.
It’s a prime example of the newest chapter in K-pop’s globalization: non-Korean acts tapping into the training, promotion, styles and strategies that made the genre an international success.
Korean networks’ many music programs showcase dozens of bands and live performances, which are readily available on YouTube — a key factor in K-pop’s international expansion, according to industry experts. In stark contrast, Japanese TV networks have been slow to embrace YouTube because sharing original content there often leads to unauthorized reuse. “Japanese TV shows are really inside — we can’t really reach to the global fans,” says Reina Aiguchi, a manager in Avex’s digital marketing group who works with XG. “In order to gain the global fans, we had to go on Korean TV shows.”
XG — like JO1 from Japan and boy band SB19 from the Philippines — followed the K-pop star incubation model, drawing their members from thousands of auditioning hopefuls and undergoing yearslong training regimens. Thanks to instruction from K-pop vocal coaches and choreographers, they appear to be gaining traction, accumulating millions of audio streams and YouTube views. What remains unclear, though, is whether they will lure non-Korean listeners away from Korean bands or grow the genre’s fan base by having lesser-known artists attract more listeners.
Either way, experts say the development could help boost K-pop’s long-term viability worldwide. Non-Korean K-pop bands may displease some existing fans, but this expansion evolves the genre beyond Korean pop. “If globalizing Korean acts was the model in the past, now the mindset is to create global-level groups around the world,” says Kim Young-dae, a Seoul-based music critic. “It didn’t happen overnight. This has been the goal that [the industry] has been working on for the last two decades.”
K-pop acts with members from outside Korea aren’t a new phenomenon. Starting in the 1990s, agencies recruited from the Korean diaspora and later expanded the talent pool to such key target markets as Japan and China. From Super Junior to TWICE to Aespa, bands have benefited from members who communicate with fans and media in relevant markets in their own languages.
But this latest wave of K-pop groups has no Korean members. Instead, they are working within Korea to take advantage of the know-how, distribution channels and global attention K-pop has established. They were often exposed to K-pop from childhood and see Korea as a platform for international stardom.
XG
Courtesy of XGALX
XG, for example, is produced by an agency led by Simon Jakops, a former K-pop idol who was born in the United States to Korean and Japanese parents. Avex selected XG’s members from a pool of 15,000 Japanese girls in 2017 and put them through five years of training — starting when they were ages 10 to 15 — to master hip-hop and R&B music, as well as English and Korean. They lived together in a dormitory in Tokyo and moved to Seoul during the pandemic. Singing and rapping in English — with the occasional Japanese word thrown in — the group made 14 appearances on six different Korean TV shows in June and July to promote its first two singles, “Tippy Toes” and “Mascara,” Aiguchi says. The group is marketed by XGALX, an agency overseen in Tokyo by Avex, which, in recent years, has struggled to repeat its J-pop idol successes from the 1990s and 2000s.
“We wanted to refer to K-pop and have those methods for XG,” says Yudai Hasegawa, manager for XGALX, speaking through Aiguchi’s translation. “Second is, we wanted to shoot those music videos in Korea, where they have good music video directors.” Such strategies appear to be making a difference: XG has about 700,000 subscribers on YouTube and around 600,000 on TikTok, while “Mascara” reached No. 14 on the Billboard Japan Hot 100, spending 11 weeks on the chart. In addition, the group won the Rising Star award at the MTV Video Music Awards Japan in November. Comments below the group’s videoclips contain English, Bahasa (Indonesia) and Spanish, alongside Japanese.
JO1, a Japanese boy band formed from the 11 winners of the 2019 reality TV contest Produce 101 Japan, also received training in South Korea. Their music, often a collaboration between Japanese and Korean producers, is sung in Japanese with English words peppered into the mix, a K-pop formula for upping the songs’ global appeal. The members have appeared on Korean variety shows and K-pop-focused YouTube channels. (Their latest single, “SuperCali,” borrows the famous compound word from Mary Poppins.) JO1 has racked up several No. 1s on the Billboard Japan Hot 100, including “Bokura no Kisetsu” (“Our Season”), which topped the chart last December and has nearly 420 million combined views on YouTube.
Korean agencies in recent years have also launched non-Korean bands that perform K-pop-like music — notably SM Entertainment’s China-geared boy band WayV, as well as NiziU, an all-Japanese girl group from JYP Entertainment and Sony Music Entertainment Japan.
After an open call for auditions beginning in 2014 involving hundreds of Filipino boys, SB19 was formed by ShowBT Philippines, a subsidiary of Korean agency ShowBT Group. The five-member boy band, which sings in English and Tagalog, trained in South Korea for three years before signing with Sony Music Philippines in December of 2019. They recently have begun cracking the Billboard charts and touring overseas, including a show at Los Angeles’ Avalon nightclub this past Saturday (Nov. 12). “They’ve really raised the bar, the Koreans,” Roslyn Pineda, general manager, Sony Music Entertainment Philippines, said in September. “Number one is the discipline” SB19 members learned in Korea, which led to a “sharpness of [dance] movements…that doesn’t lie,” she says.
“We can’t deny the K-pop influence [on JO1],” says Choi Shin-hwa, CEO of Lapone Entertainment, a joint venture between entertainment conglomerates CJ ENM of South Korea and Yoshimoto Kogyo of Japan that produces JO1. He doesn’t describe Lapone artists as K-pop, but rather envisions “a new genre that is a hybrid of K-pop and Japanese culture.”
In an interview in Tokyo, some members of JO1 told Billboard they grew up listening to K-pop CDs from boy band TVXQ and pop rock band CNBLUE, which their respective mothers, as fans, had played around the house. The members nervously denied they were already stars. “We keep on working with the hopes of catching up with all the awesome K-pop artists who are active today,” says member Issei Mamehara.
Additional reporting by Alexei Barrionuevo
For months, South Korean politicians have been scrambling to find a solution to the forced breakup of BTS, the biggest cultural export their country has known over the last several decades.
On Monday (Oct. 17), the boy band’s label Big Hit Music, a subsidiary of HYBE, appeared to put an end to the handwringing, saying that each of the BTS members would, in fact, serve their mandatory military service. That means, before long — Jin turns 30 in December — the group will not be able to perform with its full seven-member lineup until 2025.
While the timing will vary for the members — Jin, RM, J-Hope, Suga, Jimin, V and Jungkook — based on their age, the departures will create yet another challenge for Seoul-based HYBE. The company, which went public on the South Korean Stock Exchange in October of 2020, has been working to diversify its roster and silence financial analysts who said the company had the look of a one-hit wonder with BTS, the act that has landed six No. 1 songs on the Billboard Hot 100.
HYBE had already been dealing with the stress put on the company by the act’s joint announcement in June that it was taking an undetermined break from group activities to pursue solo projects. But no amount of lobbying by politicians or HYBE itself has helped BTS avoid the responsibilities that all able-bodied South Korean males from 18 to 28 have to serve at least 18 months in the military, though the length of service may vary. In December of 2020, the South Korean National Assembly passed the so-called “BTS law” to allow K-pop entertainers to postpone required service until the age of 30 with a recommendation from the culture minister.
For now, the market seems to have priced in the reality that either through military service or their own desire to work on their solo careers, this version of BTS would not be able to stay together for much longer.
HYBE’s stock, traded on South Korea’s stock exchange, fell 2.54% to 115,000 won ($80.40) on Monday, with other K-pop companies’ stocks staying within 1% of their Friday closing price.
Mandatory military service issue has been a divisive issue in South Korea in recent years as K-pop’s popularity has grown worldwide. While many, including some lawmakers, say the musicians’ contribution to the country’s global recognition should qualify them for an exemption, others that include the defense ministry have opposed the move.
In a country that has superpower neighbors such as China and Russia, as well as a saber-rattling North Korea, many South Koreans believe that the military requirement serves as a social equalizer. And attempts to avoid mandatory service have suspended or derailed the careers of several entertainers and other public figures. Boy bands such as 2 PM and Bigbang have significantly limited their public appearances or paused group activities after its members entered the military.
Jin, the group’s eldest member, turns 30 in December and is expected to start his military service by the end of the year if no sudden amendments are made to the country’s compulsory draft legislation. Jungkook, the youngest member, is 25 years old.
For HYBE, the big question remains: Has the company done enough to diversify its artist roster to account for a potential drop in revenues from a less-active BTS. Since acquiring Scooter Braun’s Ithaca Holdings in April 2021, the share of HYBE’s revenue BTS accounts for, which was 85% in 2020, has fallen to about 60% in 2021, according to one analyst estimate.
Bernie Cho, owner of Seoul-based DFSB Kollective artists and label services agency, says HYBE “has silenced naysayers by rolling out a deep K-pop artists roster that goes beyond BTS,” including new acts Seventeen, TXT and ENHYPEN. Combined, the three groups, which debuted in 2021, accounted for 7.7 million album unit sales — more than half of HYBE’s 2021 total K-pop album sales worldwide, according to company filings. And this year, two girl bands – Le Sserafim and NewJeans – have joined their male labelmates as “some of the best-selling artists of the year,” Cho says.
Nevertheless, earlier this month, NH Investment & Securities, one of South Korea’s largest securities firms, lowered its target stock price for HYBE by 19% to 250,000 won ($177) citing a “delay in growth even after acquiring Ithaca Holdings.”
BTS fuels tremendous merchandise sales in Korea, along with physical CDs and is essentially the flagship act for a growing global K-pop industry. Attention around BTS helps generate some $3.54 billion in visits from foreigners and exports of consumer goods like clothes, makeup and food, according to the Hyundai Research Institute. One Korean politician, Sung-Il-jong of the ruling People Power Party, has estimated that a No. 1 song on the Billboard charts can create a halo effect that generates an economic boom of $1.38 billion for the South Korean economy.
Twelve full months of revenue from HYBE America — which houses artist management and Big Machine Label Group, which manages top international acts like Justin Bieber — are expected to further strengthen HYBE’s income statement.
The company also will try to cobble together BTS-like sales and streams from BTS solo projects. In July, J-Hope was the first to release solo material with the album Jack in the Box, which featured singles “MORE” and “Arson.”
The members, for their part, seem to want to try to stay together as BTS. At a special free concert on Saturday in Busan, South Korea, where 55,000 fans attended, Jin teased a solo project as the members pledged to carry on group activities well into their careers. “We will continue for 30 years,” Jimin said, “and even perform when we are 70 years old.”
But it was J-Hope, the first to open up about the group’s future, who seemed to signal that military service was looming — and that the group could be entering a challenging period. “I think we’re in a phase where we need your trust,” he said.
Additional reporting by Jeyup S. Kwaaak
SEOUL — South Korea’s Intellectual Property Office has thrown up a roadblock to HYBE’s efforts to trademark the iconic “I purple you” term BTS member V created during a fan meeting six years ago.
The KIPO says that HYBE’s trademark application for V’s “I purple you (Borahae) cannot be registered as its application has been filed against the principle of good faith,” according to a notice sent to the company.
The patent and trademark office essentially says that HYBE, the parent company of BTS label Big Hit, is not allowed to trademark the phrase that V uttered, even though he is signed to HYBE, because he used it first.
V, real name Kim Tae-hyung, first created the phrase “Borahae” during a Nov. 13, 2016 fan meeting, when he said, “Borahae, like the last color of the rainbow purple (bora), means we will to the end trust each other and love each other for a long time,” the KIPO said.
“I purple you” has become synonymous with BTS. So much so that McDonald’s, in its collaboration with the group, has used the term on the side of its purple-packaged BTS Meals, which have become yet another collectible for fans.
In 2018, after BTS launched its “LOVE MYSELF” campaign, Henrietta H. Fore, the executive director of UNICEF, used the term in a special video thanking the group for its work in helping raise money for a campaign to end violence against children. “We here at UNICEF purple you,” she said at the end of her speech.
In explaining its refusal to allow HYBE to secure a trademark, however, the KIPO sided with V as the creator: “We accept that the applicant has filed a trademark that is similar to or the same as a trademark used by a different person that has a contractual or working relationship such as partnership or employment.”
It cited article 34, paragraph 1, subparagraph 20 in Korean trademark law.
V, who is known to be among the quieter members of BTS, has been active on his Instagram since the notice to HYBE became public knowledge, but hasn’t commented on the case.
An official at the KIPO, who requested anonymity because they aren’t authorized to comment on an ongoing case, tells Billboard that its decision is not final. HYBE has been given two months to file an addendum that strengthens the company’s claim, and that period could be extended further, without an explicit limit, the official says. “Citation of the subparagraph 20 is very rare, and as far as I know there are no precedents involving BTS,” the person says.
The case follows an earlier unsuccessful application by LALALEES, a Korean cosmetics company specializing in nails, to trademark the “Borahae” term in 2020 under the classification of soaps, fragrances, essential oils, cosmetics, hair products, polishes, and other cleaning agents. After the rejection caused an uproar among fans, the cosmetics company issued an apology.
K-pop companies are known for trademarking names and phrases associated with their artists. When boybands leave their management companies they often cannot perform under their previous name because the companies have registered and own the rights to the boyband’s name.
In 2015, the idol group Shinhwa reclaimed the rights to their name after a 12-year battle with agency ShinCom Entertainment and June Media (formerly known as Open World Entertainment). In that case, Shinhwa’s original agency, SM Entertainment, gave the rights to “Shinhwa” to a new agency, Good Entertainment, and then trademarked the name in 2005, before handing trademark rights over to June Media completely, according to according to K-pop publication Soompi.
And in 2020 a Korean court stripped SM Entertainment director Kim Kyung Wook of trademark rights to the name and logo of first-generation boyband H.O.T. (Highfive of Teenagers), which he originally cast and produced in 1996. While planning a reunion tour, the group in 2018 was forced to remove its name and logo from promotional materials after failing to come to an agreement with Kim over trademark rights, Soompi reported.