“K-pop is all about money”

SEOUL – Behind the glitz and glamor of K-Pop lies a business reality characterized by fierce competition and significant financial investment. While K-pop idols shine on stage, producers face challenges behind the scenes, particularly in securing funds to sustain their artists’ careers.

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

“The production cost of starting a K-pop group usually starts at around 3 to 5 billion won ($2.17 to 3.62 million), which usually covers the release of two to three albums. The real effort lies not in the training, but in making the group successful. To achieve this, releasing five to ten albums within one to two years is essential, and together with marketing, this can cost about 5 billion won.”

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

“A road manager drives idols to their appointments and takes care of them. Next comes the field manager, who plays a central role in managing the artist’s schedule, checking times and coordinating routes. Finally, there is the appointment manager, who oversees daily activities and contacts broadcasters to arrange performances for the artist,” Shin explained.

In his 24 years in the K-pop industry, he has worked his way up from the bottom, mentoring artists such as Jaurim, Sung Si-kyung, Roller Coaster and Clazziquai.

“My role as a producer now is to secure investments and oversee the entire process of creating 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.

“Previously, schedule managers handled meetings with composers and selected songs, but now the A&R team takes on that role and manages the overall concept of the album and song selection,” he said. “At large entertainment companies, events and concerts are handled by performance and A&R teams, while field managers focus solely on broadcast schedules. Communication takes place directly with the CEO.”

This highly organized system is unique in South Korea, Shin said.

“In Japan, for example, artists often only have a manager once they have reached a certain level of success. Many make a living doing part-time jobs until they are popular enough to sign with a label and then receive a salary,” Shin said. “But South Korea’s K-pop system is much more comprehensive, covering everything from plastic surgery and skin care to intense training. It sets South Korea apart.”