‘It Costs Over $13 Million To Manage Two Kpop Groups A Year’: The Jaw-Dropping Cost Of Managing Kpop Groups Revealed

We finally have some rare insight into just how much it costs to manage kpop groups!

“It costs a lot of money. If you want to run about two teams a year, it takes around 20 billion won [$13,692,260] in total,” said Jaejoong on a recent broadcast.

JYJ member Kim Jaejoong, who produced the girl group Say My Name and is preparing to launch a boy group, made this statement during his appearance on the Netflix variety show “Try Try.”

When Choo Sung Hoon asked, “It’s hard for an idol to make it big, so can you actually make money?” Kim Jaejoong replied, “The best-case scenario is when a group starts generating profit about three years after debut.”

Kim Jaejoong’s response reflects the K-pop system, where agencies make “pre-investments” by scouting members, training them for years, and nurturing them into idols.

Costs begin accumulating from the casting stage, which involves visiting K-pop academies in Korea and abroad, holding auditions in different regions, and covering staff travel, lodging, and venue rental fees. Some agencies even invest billions of won [millions of dollars] upfront to produce their own TV audition programs.

Once trainees begin their training, expenses rise significantly. They receive lessons in vocals, dance, and rap, as well as training in camera work, foreign languages, and even beauty care. After a debut is confirmed, agencies must also secure accommodations to optimize the group’s schedule.

During the debut phase, costs escalate even further. Due to intense competition among rookie groups, agencies now invest heavily in pre-released songs and multiple music videos, significantly increasing content-related expenses.

In addition, social media marketing has become a multi-billion won competition. A music industry insider stated, “These days, social media marketing plays a huge role in a rookie group’s success. Spending just 100 million won [around $68,559] barely makes a dent. The gap in marketing budgets between big and small agencies is so vast that people even call it a ‘marketing wealth gap.'”

At a recent press conference held by domestic music organizations, industry officials pointed out, “The lifespan of idol groups is now extremely short—just two to three years. This means an enormous effort is required to create and launch them within a short period. Even small and mid-sized agencies need to invest at least 1 to 10 billion won, or even up to 100 billion won.”

Did the actual cost of debuting and managing kpop groups surprise you?

Source: (A)