Kim Jaejoong Creates His Own Agency, Reveals Huge Costs for Idol Production: 'In a Year, It Can Spend Rp 230 Billion'

Kapanlagi.com - In May 2023, Kim Jaejoong, the renowned singer and actor from South Korea, established an entertainment agency called iNKODE Entertainment. Together with the former vice president of Cube Entertainment, Noh Hyun-tae, Jaejoong is ambitious to change the face of the K-pop industry by developing a new idol group.

Recently, Jaejoong came into the spotlight after discussing the reality of K-pop idol production costs in the Netflix program, Try? Choo-ry!. In the show, he revealed that to manage two idol groups in a year, a budget of up to 20 billion won (around Rp230 billion) is required.

This statement even surprised athlete and entertainer Choo Sung Hoon. "The costs are enormous. If you want to manage around two groups in one year, the total can reach 20 billion won (around Rp230 billion)," said Kim Jaejoong.

As we know, after debuting the girl group SAY MY NAME, he plans to debut a boy group.

1. The Fantastic Production Costs of Idol

source: via allkpop.com

This fantastic figure is not without reason. The K-pop system demands significant investment from the early stages, starting from recruiting potential members, years of training, to the production and promotion of their debut. Even before debuting, every trainee must go through various training processes that involve vocal classes, dance, rap, as well as foreign language learning and stage skills.

"From the member search stage, costs have already started to arise. There are auditions in various places, both domestically and internationally, which require travel expenses, accommodation, and venue rental," explained an entertainment industry source.

2. Marketing Strategies That Increase Costs

Once the group is ready to debut, expenses increase even more. With the fierce competition in the industry, marketing strategies such as pre-debut song releases and creating multiple versions of music videos have become increasingly common. Promotion costs on social media have also skyrocketed.

An insider from the music industry revealed, "Currently, marketing on social media is crucial for the success of new groups. With just 1 billion won (around Rp11.5 billion), the impact might be negligible. There is a significant difference between large and small agencies, leading to the term 'marketing gap'."

3. Cost-Effective Alternatives in Idol Production

Recently, this trend has given rise to more cost-effective alternatives. One example is the band QWER, which consists of digital creators, former idols, and TikTok influencers. Unlike conventional idols who undergo years of training, QWER emerged through the YouTube project Favorite Idol and transparently showcased their debut process to the public.

"Our production costs are only about one-tenth of those of a regular idol," said Kim Gye Ran, the creator behind the QWER project. "Typically, idols need about three to five years before debuting, but we only needed six months from the start of promotion to debut."

QWER also avoids high costs from music show productions by focusing on performances at festivals and live events that prove their live abilities. As a result, they began receiving payments in less than a year after their debut—something that is rare in the K-pop industry.

Although this more efficient production concept attracts attention, many argue that this method cannot be directly compared to the established K-pop idol system. The K-pop industry still heavily relies on a long-term investment model, where the perfection and readiness of idols are the main benchmarks for their success.

Regardless of the differences in strategy, one thing is clear: building a K-pop idol is not just about talent, but also a significant investment that requires careful calculations to survive in a competitive industry.

(kpl/jje)