BEIJING: Hybe Co, the company behind K-pop sensation BTS, has opened its first office in China in the wake of rising expectations that Beijing will soon lift a near-decade-long ban on Korean pop performances in the mainland.
K-pop’s largest company opened an outpost in Beijing last month, according to a Hybe spokesperson. That comes as Hybe and rival SM Entertainment Co. have ramped up their China business teams over the past few months.
Widespread expectations that China will soon end an unofficial ban on K-pop performances - in place since 2016 - is spurring a flurry of preparation throughout the industry and boosting shares.
Hybe shares are up 40% this year. SM Entertainment’s stock price have jumped around 70%, while Blackpink manager YG Entertainment Inc. shares are up more than 75%.
China’s biggest music streaming platform operator Tencent Music Entertainment Group plans to buy a nearly 10% stake in SM Entertainment, a move that’s expected to resume K-pop music distribution and help fuel a possible K-pop resurgence in the world’s No. 2 economy.
Compared to SM, whose artists toured mainland China before the K-pop ban, Hybe has had little exposure in the market. Instead, it’s pivoted its business to the US and Japan, acquiring Ithaca Holdings, the label that represents Ariana Grande and Justin Bieber. - Bloomberg
