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ADOR CEO Min Hee-jin recently pointed out the following problems in the Korean music industry during a press conference.

1. The evils of the multi-label system centered on large corporations

HYBE currently operates 65 companies and 11 labels.

BIGHIT MUSIC : BTS

PLEDIS Entertainment : SEVENTEEN

ADOR : NewJeans

SOURCE MUSIC : LE SSERAFIM

Belift Lab : ILLIT and 11 other label companies

Large agencies such as SM and JYP are not dividing their companies into separate legal entities, but rather replacing them with **large departmental organizations** such as 'Headquarters 1, Headquarters 2'.

Unlike these, HYBE is different in that it is the most active in introducing and operating a multi-label system.

Based on BIGHIT, which created BTS, it has been acquiring already established companies such as SOURCE MUSIC, PLEDIS, and KOZ, and newly established companies such as Belift Lab (jointly established with CJ ENM and then acquired) and ADOR over the past few years.

If existing companies adopt a system where multiple artists are assigned to departments within one company and then managed, HYBE has created a framework where the activities of artists are managed on a subsidiary basis, similar to a conglomerate.

As a result, HYBE's unique subsidiary operation has become a driving force behind its record-breaking sales growth over the past few years.

Each company has established a separate CEO system, and with the support of strong capital, they are operating their companies and leading the success of their singers in their own way.

The background behind the introduction of this method is **to reduce dependence on specific artists**, while giving each company autonomy and **triggering healthy competition**.

However, the rapid growth of its size has led to **communication problems**, and there is a lot of interpretation that the conflict between HYBE and ADOR is also emerging in the same context.

There is also **a fight between labels**, and there are times when communication fails **and they are confused because they cannot share information about the singers' activities or concepts.** Hearing the stories of internal employees, **it is also a starting point for the current catastrophe.**

She claimed that this multi-label system centered on giant corporations is having a negative impact on the Korean music industry.

🔹 The limits of the 'factory-style K-pop production' method: plagiarism controversy

CEO Min Hee-jin raised concerns about plagiarism controversies over the music and choreography of ADOR artists.

She pointed out that these issues are having a negative impact on both artists and consumers.

A CEO of a mid-sized music agency said, “As seen in the recent controversy over a singer's vocal skills at a US festival, **when you debut many groups in a short period of time, there are bound to be members who lack skills.**” “This method may lead to the growth of the K-pop industry in the short term, but **it can also have negative consequences in the long term.**”

2. Idol Photocards

"Photocards," also known as 'poka,' are small card-shaped products with photos of singers included in idol albums.

Fans enjoy collecting or exchanging these photocards, and they are considered an indicator of the idol group's popularity.

🔸 Photocard Purchase and Collection

Photocards are randomly included when you buy an idol album.

Fans also buy multiple albums to collect photocards or trade individual photocards online.

🔸 Growth of the Photocard Market

Idol photocards are gaining popularity, being exported overseas along with the growth of the K-POP fandom.

The photocard trading market is also growing, and some fans are investing a significant amount of money in collecting photocards.

Photocards in idol albums have become a medium of communication between fans and idols, but **a vicious cycle of fandom culture and commercialism**, **unethical transactions**, **fans' excessive obsession** and other negative aspects also exist.

🔹 The vicious cycle of fandom culture and commercialism

The price of photocards of certain members is skyrocketing, **causing inequality and conflict among fandoms**, and there are concerns that idol album purchases may be distorted as a means of photocard lotteries.

In addition, as the practice of buying photocards without buying albums increases, there are also concerns that it hinders the healthy development of the music industry.

Some media outlets have reported on the appearance of fans who are struggling with excessive spending for idol photos, pointing out problems that can lead to **irrational consumption patterns** and economic difficulties.

<"Spent 10 million won on K-pop fandom" Global MZ enthusiastic about killing content>

🔹 Environmental Issues

**Discarded photocards** after purchasing idol albums are generated in massive quantities, raising concerns that this could lead to **waste of resources and environmental pollution**.

ADOR CEO Min Hee-jin publicly pointed out **random photocard insertion** which makes consumers keep buying albums like lottery tickets, and what is called **"pushing out"** (a practice where distributors and sellers purchase a large amount of new album initial sales and the agency compensates with fan sign events, etc.) to say that "**it is a practice that shifts the burden onto fans and disrupts the market**.”

"I wanted to show that NewJeans can succeed without doing that."

💬 This issue between HYBE and ADOR CEO Min Hee-jin **reflects the structural problems of the Korean music industry**.

The monopoly structure centered on large corporations, unfair contract practices, and plagiarism controversies are problems that have been pointed out for a long time.

If these problems are not resolved, it will be difficult to expect sustainable development of the Korean music industry.

It seems that in-depth discussions and solutions to these issues are needed in the future.

Artists, agencies, the government, and related institutions need to work together to create a healthy music industry ecosystem.