BTS's rise to global superstardom remains the prime example of what Kpop calls the "small company miracle." They are the story of a humble startup company that overcame numerous obstacles in the notoriously cutthroat industry to become a leading Kpop empire.
However, more than 12 years after BTS's debut, no other group has created a similar "miracle." BTS's success seems to be a rare exception.
Small businesses are facing increasing difficulties.
Kpop has never been as big as it is now. So why are smaller companies still facing so many difficulties?
According to industry experts, the root cause lies in the increasingly deep differentiation that is reshaping the Kpop ecosystem. Kpop's global expansion has led to higher production standards and costs. To create a product that can compete with giants like HYBE, companies have to invest more. Meanwhile, the battle for attention and recognition in the international market also drives up marketing costs.
The figure typically ranges from 7 billion won to 10 billion won ( US$5-7.2 million ). According to Kim Jin Woo, CEO of entertainment company RBW, the average cost has increased seven to eight times compared to before the pandemic.
"Developing a rising artist is no longer what it used to be. The industry has become so polarized that the scale of spending by large companies on marketing and production far exceeds the capabilities of small and medium-sized companies," Kim said at a discussion during the MWM Conference in western Seoul on September 4.
Against this backdrop, Wayf Boys – the first boy band formed by the startup company Wayf – officially debuted on August 7th.
The five-member group positions itself as the first generation of "Nu Kpop." Wayf Boys pursues a more "spontaneous" approach in an industry known for meticulous attention to detail. The members collaborate on music creation, choreography, album design, styling, content production, and promotion, according to Korea JoongAng Daily.
"Nu K-pop isn't just about creating a completely new genre of music; it also refers to how artists and companies produce and promote music," Son Sung Ho, founder and producer of Wayf Boys, shared with Korea JoongAng Daily .
"Instead of portraying the image of a complete idol as if that were the only correct answer, we wanted to show the process of the five members freely exploring and developing together as a group," he said.
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Wayf Boys aim for freedom rather than conforming to the standards of other Kpop groups. Photo: Wayf. |
Wayf Boys entered the market at a time when opportunities for success were increasingly tilted toward larger companies. However, the survival of lesser-known Kpop groups may no longer depend solely on a rare breakthrough or "musical miracle." In a vast but increasingly fragmented global market, smaller groups are experimenting with different paths: building their own identity and finding a suitable audience.
This creates opportunities for groups with unique personalities. They don't necessarily have to become a phenomenon in Korea , but can choose to reach an international audience.
Therefore, the question is perhaps no longer whether the "small company miracle" like BTS is disappearing from K-pop. The important question is whether that miracle is shifting to a different form. For example, groups reaching out to specific overseas audiences.
Chung Chang Yun, a music producer known by his stage name Andnew, and the founder and CEO of music publishing company Salpot Music Group, believes that smaller companies still have a chance to thrive in K-pop because the landscape has changed.
"Music genres have become very diverse these days. Everyone is trying to find something special within that diversity. Smaller companies can showcase unique qualities, not only in music but also in visuals. They aim for things that larger companies can't," he shared with Korea JoongAng Daily .
According to Chung, uniqueness is the most important weapon for small companies. "It's crucial to have a distinct identity – something sharper," he said. Chung believes that even somewhat controversial ideas can help a team stand out.
To survive in the long term, he emphasized: "You must not try to follow the model of big companies."
A direction for small companies
Chung Chang Yun cited XLOV as an example of a different path. XLOV was the first Kpop group to identify as "genderless." They debuted in January 2025 under 257 Entertainment, which was acquired by RBW earlier this year and renamed Strange Lab.
XLOV is gaining attention, especially in the international market. Their latest EP, I, God, sold over 220,000 copies in its first week. The album also made Billboard's list of "25 Best K-Pop Albums of 2026 So Far".
According to Park Jae Yong, CEO of Strange Lab, a crucial condition is that the group's concept, identity, and direction must be clear and unique. Park acknowledges that high costs remain a significant challenge for small companies. However, these limitations also force XLOV to find more creative solutions.
"We had to differentiate ourselves with innovative ideas due to a lack of funding and resources. At the same time, we had to find suitable resources that could help us stand out within a limited budget," he said.
According to Park, this process also helped the XLOW members become more close-knit.
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XLOVE created a concept that was different from the general standard of Kpop. Photo: People. |
Recently, Wayf Boys signed a contract with Interscope Records, a label backed by Universal Music Group, to promote themselves in the US. The group currently has 1.29 million followers on Instagram, a significant increase since their debut.
"We knew we couldn't simply follow the way the big companies operate. In fact, we didn't want to do that from the start," said Son of Wayf.
Son acknowledged that rising costs have severely impacted small companies, both in production and marketing. However, he believes opportunities are also expanding, particularly in international markets.
"In short, I believe this is an era where the capital gap has widened. But at the same time, the ability to directly reach fans overseas has also increased, as long as you have good music and a clear identity," Son said.