The Ministry of Culture, Sports and Tourism said on the 8th that it will foster the popular music industry through three key tasks: expanding support for small and mid-sized agencies' global expansion, introducing tax credits and creating loan programs, and revitalizing indie music.
Culture, Sports and Tourism Minister Choi Hwi-young made the remarks at a "field roundtable to strengthen the music industry ecosystem," held that afternoon in a conference room at the National Museum of Modern and Contemporary Art in Jongno-gu, Seoul. "This year we established the 'Global Leap Support Program for Small and Mid-Sized Agencies,' and next year we intend to expand its scale by about twofold," he said.
The "Global Leap Support for Small and Mid-Sized Agencies" program selects 10 capable small and mid-sized agencies each year, providing about 300 million won annually for up to three years. The recipients selected through this year's open call are 10 groups, including Lysenne, well known for "Geoje Yaho," as well as Cyclus, Tunex, Kiraz, Can't Be Blue, 82Major, Big Ocean, Youthphere, XEIN, and Eightturn.
This year's program is worth up to 9 billion won, and if it doubles next year, support of up to 18 billion won will be provided.
On the popular music tax credit for production costs, the music industry's biggest issue, Minister Choi stressed, "We are now in active discussions with fiscal authorities," and explained, "We are also seeking to create loans for small and mid-sized companies." He added, "Indie music is not only the foundation of the music industry that nurtures diverse genres and newcomers, but also plays its role as one pillar of local culture by taking root in regions and holding performances. To develop beyond K-pop into K-music, we will intensively foster indie music."
The roundtable was arranged to discuss measures for the sustainable growth of Korean popular music. According to the ministry, last year Korean popular music sales and exports rose 15.4% and 32.4% respectively from the previous year, showing clear growth. However, concerns were also raised that industry growth could slow due to structural factors such as continuously rising production costs, genre concentration, deepening gaps between companies, insufficient performance infrastructure, and regional imbalances.
That is why small and mid-sized agencies, rather than the four major agencies HYBE, SM, YG, and JYP, gathered at the roundtable. Attendees included heads of music agencies such as Mystic Story, CAM WITH US, RBW, FNC Entertainment, and EMA, as well as officials from related associations including the Korea Music Content Association, the Korea Popular Music Performance Industry Association, and the Korea Music Label Industry Association.
Minister Choi expressed concern, saying, "The number of new artists entering the Circle Chart last year fell by about 40% compared with 2023, that's how much newcomers have declined," and, "Polarization has intensified to the point that production cost scales differ by as much as 30-fold between large agencies and small agencies. At this rate, it raises the question of how long (K-pop's) momentum can last."
He stressed, "For the brilliant achievements our popular music scene has attained to continue, the music industry must become sturdier and the ecosystem must be healthy," adding, "The industry's mid-tier, its backbone, must strengthen, and creation must be carried out actively across diverse fields. The ecosystem must evolve in a direction that secures diversity."
Meanwhile, at the roundtable, the industry proposed introducing tax credits, expanding the global leap support program to mid-sized agencies, and revising ordinances related to rental fees for regional performance venues, which are set higher than in Seoul.
Woo Seung-hyun, chairman of the Korea Music Content Association, requested, "There is even a saying that it costs more than 10 billion won to create one idol group and put it on track, that's how heavy the burden is," and, "Infrastructure construction is also needed, but we ask you to focus on production support right now." He added, "Just like other cultural sectors such as books, performances, and films, income deductions for album purchases are also needed."
Kim Jin-woo, CEO of RBW, said, "Content support funds such as the Fund of Funds or growth funds include film and games as their main purposes, but K-pop is not there," adding, "Export-oriented content costs a lot of money, and it would be good to have opportunities to hedge this."
Ko Ki-ho, chairman of the Korea Popular Music Performance Industry Association, also pointed out, "In Seoul, we pay rental fees of about 6% of revenue, but regional performance venues apply 10% instead," and, "Because regional performances involve costs such as labor, accommodation, and teardown, the burden of rental fees is heavy."
Meanwhile, Minister Choi expressed empathy with the industry's difficulties, noting that he himself had 10 years of experience running Deulgukhwa Company. He also called for active support from the industry in efforts to eradicate scalping, which will be carried out in line with the enforcement of the revised Performance Act and National Sports Promotion Act on August 28.
These revised laws significantly strengthen the level of punishment, banning all fraudulent transactions regardless of whether macros are used, and introducing fines of up to 50 times the sale amount as well as a reward system for reporting.
He also disclosed plans for the K-pop festival "Phenomenon," being promoted by the presidential Popular Culture Exchange Committee, of which he is co-chairman. Minister Choi said, "The framework of the K-pop festival 'Phenomenon,' to be held next December, has been completed and will be announced within this month," expressing hope that "when this large event is held, many K-pop fans from overseas will visit Korea."
