K-pop looks to China to supercharge growth after strong earnings
Hybe, the powerhouse agency behind K-pop boy band BTS, saw its second-quarter revenue rise 10% from year earlier to about $510 million, a record for the period, while its operating profit surged 29% supported by concert attendance and merchandise sales.
The momentum is expected to accelerate in the third quarter. Hyundai Motor Securities analyst Kim Hyun-yong expects Hybe's operating profit to jump 51% from a year earlier thanks to global fan demand and new group debuts.
'Hybe holds a unique position as the only K-pop agency fully capitalizing on key drivers: accelerating demand in Western markets and a potential upside from a relaxation of China's unofficial entertainment sanctions," Kim said.
Other entertainment companies are also thriving. SM Entertainment, which manages girl groups Red Velvet, Girls' Generation and aespa, saw its revenue jump 19% with merchandise sales hitting a quarterly high.
CJ ENM's music segment saw its operating profit surge about 250%, driven by album sales and concerts, while Galaxy Entertainment, which manages K-pop icon G-Dragon, is also looking to ride the wave with a $1 billion initial public offering next year.
That growth story could get a big second wind—signs of a diplomatic thaw with China are rekindling hopes of a major market reopening for the industry.
Beijing viewed South Korea's 2016 decision to deploy a U.S. missile-defense system as a threat to national security, and Chinese policymakers responded with informal curbs on sales of Chinese tour packages to South Korea and a block on Korean cosmetics, soap operas and K-pop stars.
But there are signs of warming relations on this front.
South Korea this week said it would allow visa-free entry for Chinese group tourists starting in September, potentially boosting concert attendance and physical album sales.
Also, China's Tencent Music Entertainment took a 9.4% stake in Korea's SM Entertainment in May, while JYP Entertainment is planning to launch a second 'localized group" in China later this year.
China was a crucial target market for K-pop companies prior to the informal ban, Mirae Asset analyst Lizzy Liu noted, and a reopening 'is not simply a return to past successes but potentially a springboard for even greater expansion within China and beyond."
Although the pace of the reopening remains policy-sensitive, 'Korean entertainment companies with multilingual artists, strong digital channels, and operating experience in China stand to benefit," Nomura analysts Angela Hong and Won Kang said.
Hybe remains Nomura's top pick in the sector, thanks to solid monetization of its intellectual property and a potential BTS comeback in early 2026. The brokerage also sees SM Entertainment as well-positioned, especially after Tencent Music acquired a stake and signed a strategic partnership to support content distribution in China.
A full lifting of China's informal K-pop ban could kick off a multiyear growth cycle for Korean entertainment firms, offering a powerful tailwind for companies already ramping up global expansion, analysts said.
Write to Jihye Lee at jihye.lee@wsj.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
2 hours ago
- Mint
Priyanka Chopra's blissful week with Malti, Nick and family — fountains, concerts and pure joy. See pics
Priyanka Chopra treated her fans to a heartwarming glimpse into her family life, sharing a series of candid and joy-filled moments featuring her husband Nick Jonas, their daughter Malti Marie, and loved ones. The photo thread, posted on social media, radiated warmth and happiness. In the first picture, Priyanka is all smiles as she poses with little Malti, capturing a tender mother-daughter moment. The second image shows Malti enjoying a playful adventure, walking through and splashing in a fountain, her joy clear to see. The third slide took a more glamorous turn, with the family spotted at a BLACKPINK concert, soaking in the electric atmosphere of the global K-pop phenomenon's performance. Other pictures showcased Priyanka and Malti spending quality time with Nick Jonas as he, Joe, and Kevin Jonas prepared for their upcoming shows. The snapshots revealed a relaxed, behind-the-scenes look at family life amid the busy schedules of the Jonas Brothers. Priyanka also took a moment to highlight her extended family. One picture featured her brother Sidharth Chopra posing with his wife and cousin Mannara Chopra, proudly showing off his collection of rakhis — a nod to the Raksha Bandhan celebrations. From Upsanan Konidela, Nick Jonas to Namrata Shirodkar and Saba Pataudi, various people commented on Priyanka's post. Celebs react to Priyanka's post. Reactions to Priyanka's post. The collection of images gave fans a rare peek into the star's personal world, blending glamorous events with intimate family bonding. From concerts and rehearsals to cultural festivities, the moments captured reflected a balance between the global superstar's busy career and her deep connection to family traditions.
Economic Times
4 hours ago
- Economic Times
Economist PM Mark Carney's big shock - Canada loses 41,000 jobs in July as youth unemployment hits 14-year high
Synopsis Canada unemployment rate July 2025: Canada's job market experienced a significant setback in July, shedding 40,800 jobs, predominantly full-time positions. The youth unemployment rate surged to 14.6%, a level unseen since 2010, excluding pandemic years. This weak data strengthens the case for a potential interest rate cut by the Bank of Canada, although upcoming inflation and jobs reports could influence their decision. Reuters FILE PHOTO: Canada's Prime Minister Mark Carney (REUTERS/Blair Gable/File Photo) Canada unemployment rate July 2025: Canada's job market faced a sharp blow in July as it lost a net 40,800 jobs during the last month, according to a report by Yahoo Finance citing the most recent figures from Statistics the national unemployment rate remained unchanged at 6.9 per cent, the majority of the lost positions were full-time in nature, and the most affected was young Canadians between 15 and 24 years old, whose jobless rate skyrocketed to 14.6%, the highest since September 2010, outside the pandemic years of 2020 and 2021, as per the Yahoo Finance report. Statistics Canada said, "Overall, there has been little net employment growth since the beginning of the year, and the number of employed people in July was little changed compared with January," as quoted in the to the consensus estimates of financial experts released by CIBC Economics, 15,000 jobs were forecast to be created and the unemployment level was expected to rise 0.1 percentage points to 7%, as reported by Yahoo Finance Canada' data shows that the Canadian economy added 83,000 jobs, which was above expectations, according to the report. ALSO READ: Trump prepares $500 billion IPO for Fannie Mae and Freddie Mac, could fetch $30 billion — biggest in yearsCIBC economist Andrew Grantham said that "the Canadian labour market came back down to earth with a bump" and added July's weak data "is supportive for our call of a 25-basis-point interest rate reduction" at the Bank of Canada's next announcement on September 17, according to the Grantham also pointed out that there are many more data releases, including inflation data and the August jobs report, that could change the Bank of Canada's outlook, reported Yahoo chief economist Douglas Porter described the July data as "unambiguously weak," and highlighted that with labour data for both June and July considered, "the overall picture is a soft economy, running with some excess capacity, not surprising in light of the trade uncertainty," as quoted in the report. He pointed out that, "For the Bank of Canada, this acts as a heavy counterweight to the outsized strength in June, but it will still need to see inflation slow notably over the next two prints for a September cut to be a high likelihood," as quoted by Yahoo Finance. ALSO READ: Who is Bao Fan, star Chinese banker who reappeared after vanishing 2 years ago? While July's unemployment rate remaind the same as June because the number of people looking for work or on temporary layoff was similar to June, but the participation rate, which measures the proportion of people aged 15 and older with a job or actively seeking one, dropped by 0.2 percentage points to 65.2%, according to the Canada senior economist Brendon Bernard highlighted that "Manufacturing jobs were roughly unchanged, [with] the weakness coming from information, culture, and recreation, which had been fairing well recently, as well as construction," as quoted in the Yahoo Finance report. Bernard said that, "Losses were also concentrated in Alberta and BC, while manufacturing-exposed Ontario and Quebec held steadier," as quoted in the even explained that last month's data show that weak hiring, not layoffs, "remains the primary drag on the employment situation," with "job seekers on the margins of the labour market" in a difficult situation, as quoted by Yahoo many jobs did Canada lose in July 2025?Canada lost 40,800 jobs in July, mostly full-time positions, as per the Yahoo Finance report. How many jobs did Canada lose in July 2025? Canada lost 40,800 jobs in July, mostly full-time positions, as per the Yahoo Finance report.
Time of India
4 hours ago
- Time of India
Tesla India takes on lease 8,200 sq ft commercial space in Delhi's Aerocity
NEW DELHI: Electric vehicle giant Tesla, which is expanding its presence in India, has rented 8,200 sq ft of commercial space in Delhi's Aerocity for a starting rent of Rs 17.22 lakh per month, according to CRE Matrix. Real estate data analytics firm CRE Matrix, which has reviewed the registration document of leasing transactions, said that Tesla India Motor & Energy Pvt Ltd has taken on lease 8,200 sq ft area at Worldmark 3 project in Aerocity from Oak Infrastructure Pvt Ltd. The space has been taken for a 9-year lease, with a starting rent of Rs 17.22 lakh. The starting rent is Rs 210 per sq ft. The rentals will increase by 15 per cent every 36 months. The lease registration happened on July 30, 2025. Elon Musk-led Tesla made its India retail debut last month with a store in the Bandra Kurla Complex business district in suburban Mumbai. The company is selling the China-made 'Model Y' with a price tag of nearly Rs 60 lakh after accounting for the high import duties. Recently, Tesla leased a 33,000 square feet area in a commercial building at Gurugram , Haryana, which can be used as a service centre and sales outlet, according to CRE Matrix. The company registered a 9-year lease for the unit in Gurugram's Orchid Business Park. Tesla will be paying a starting rent of Rs 40 lakh for the Gurugram property. There is a clause in the agreement under which the rent will escalate by 4.75 per cent per annum. The chargeable area is 33,475 sq ft, while the super-built-up area of the property is 50,914 sq ft, CRE Matrix had said, adding that there is a 3-year lock-in. The property has been leased from Garwal Property, and the lease was registered on July 28.
