HYBE, the South Korean entertainment giant, has officially launched a subsidiary in China, the world’s fifth-largest recorded music market.
A spokesperson for HYBE confirmed that the company opened an office in Beijing last month. According to Yonhap News, the new subsidiary will help HYBE’s artists enter and grow in the Chinese market.
HYBE manages popular acts such as BTS, ENHYPEN, and Seventeen.
The Beijing office marks HYBE’s fourth international market outside South Korea. The company previously expanded to Japan, the United States, and Latin America in recent years.
This announcement follows news last week that HYBE plans to open an office in Mumbai, India. Yonhap reported that HYBE is preparing for a “full-fledged entry into the Indian entertainment market” starting with a local presence.
At that time, HYBE said, “While we are not currently making concrete plans to open a local office in India, we regularly conduct market research in various countries and regions.”
HYBE’s move into China comes amid reports that China may lift its ban on South Korean cultural imports. K-pop groups have been unofficially barred from performing in China since around 2016 or 2017.
If relations improve, this could lead to a significant increase in concert ticket sales, albums, and merchandise for South Korean entertainment companies. The growing global popularity of K-pop makes this an important opportunity.
HYBE’s new China office comes in the same year that BTS, its flagship K-pop group, is expected to return after a break. BTS had paused activities while members completed mandatory military service.
In other news, HYBE recently sold its entire 9.38% stake in rival K-pop company SM Entertainment. The buyer was Tencent Music Entertainment, China’s largest music streaming company, in a deal worth nearly $180 million.
Tencent Music’s investment signals strong confidence in South Korean entertainment’s future in China. SM Entertainment and Tencent Music also announced a partnership to co-produce new idol groups and plan performances in China.
Yonhap reports that key K-pop rivals such as SM Entertainment, YG Entertainment, and JYP Entertainment already operate China-based divisions.
After news of HYBE’s India plans, questions arose about whether the company might pursue acquisitions there, following its strategy in other markets like the US and Latin America.
In 2023, HYBE entered the Latin music market by acquiring Exile Music, a label affiliated with Spanish-language entertainment studio Exile Content. The company has since partnered with Spanish-language network Telemundo to launch the show Pase a la Fama.
HYBE’s largest recent acquisition was the $1 billion-plus purchase of Ithaca Holdings, led by Scooter Braun, in the US in 2021.
In February 2023, HYBE America, under Scooter Braun’s leadership, acquired Atlanta-based QC Media Holdings, home to artists like Lil Baby and Migos, in a $300 million deal.
Earlier this year, HYBE also acquired Confirmed360, a Santa Monica-based events concierge known for arranging VIP concert experiences for stars like Taylor Swift and Justin Timberlake.
Most recently, on May 29, HYBE America sold Big Machine Rock, a Nashville-based rock label, to Gebbia Media. Big Machine Label Group was part of Ithaca Holdings, which HYBE acquired in 2021.
HYBE reported its highest-ever first-quarter revenue this year, surpassing 500 billion South Korean won (about $348.4 million) in the three months ending March. This is a 38.7% increase from 360.9 billion won ($251 million) in the same period last year.
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