K-Pop has become a phenomenon that is growing at an exponential level. K-Pop lovers have found solace in the genre and in the idols who perform the music. The appreciation for these idols stems from a deeper understanding of how much effort they have put in to get to certain points in their careers. Becoming a K-Pop idol is not easy. It sometimes takes years of dedication and training to debut and then even more effort to be successful after debuting. This works in all aspects - fame, money, fandom, and more. One of the most common questions that K-Pop lovers ask in regard to this effort is how K-Pop idols earn money.

As much as fans love seeing their idols perform and appreciate their hard work, it gives fans a sense of assurance to know that the K-Pop idols are being well-compensated for their work, too.

Today, we'll take a look at how K-Pop idols earn money both pre-debut and after their debut. We'll look at some of the factors that affect how much they earn, some technicalities about their income, and more.

Some of the sources used for this article include Grazy Grace's YouTube video on the subject (she is a former K-Pop artist), MBLAQ Mir's YouTube video on the matter, the survival show "PEAK TIME", and various news articles. 

 

Earning Spectrum of K-Pop Idols at Different Levels of Their Career

We all know that income in K-Pop varies depending on a lot of factors. Be it an idol's agency, the financial scale of that agency, their popularity, etc. There are many reasons for the varying amounts that all K-Pop idols in the industry earn.

The earnings of K-Pop idols can vary widely depending on their level of fame, experience, and success. Generally, trainees and lesser-known idols earn much less than established and popular ones.

According to reports, some trainees and new idols can earn as little as minimum wage, which is around $8-10 USD per hour in South Korea. However, more established and successful idols can earn millions of dollars per year from various sources, including music sales, merchandise, endorsements, and concerts.

Let's look at a few groups as examples.

We'll include some of the groups' sales figures just for reference, however, these figures alone don't determine a group's income or success.*

 

A Group That Hasn't Earned Much Yet During Their Career: VANNER as a Case Study

Recently, VANNER became a hot topic among K-Pop fans upon their appearance in the JTBC survival show "PEAK TIME". The group revealed that they are all doing part-time jobs (as waiters in a tteokbokki restaurant, as a barista, as a delivery driver, and as a guide at the cinema) in order to keep their group activities and fund their activities. The surprise grew when it was discovered that their company (VT Entertainment) CEO is also working two jobs (one as their CEO and another as a driver) to keep the company going.

The group has thought about giving up being an idol because they didn't have the funds to continue. However, because they love performing so much, they've been doing part-time jobs continuously to fund their dream.

You can watch their full story and opening performance which showcases their immense talent in this video.

If we take a look at their sales, one fan tweeted about how the group has only sold 2,555 album copies throughout their career (they debuted in 2019) and most of the albums are no longer being printed, making it difficult for new fans to buy them.

VANNER is also ranked as the 34th best-selling group to have debuted in 2019. This is out of 45 groups.

The group has been active for 4 years and is yet to earn a sustainable income.

 

A Group That Has Earned An Income Almost Immediately: NewJeans as a Case Study

However, in stark contrast to that, the rookie girl group NewJeans made headlines for the opposite reason.

Of course, NewJeans is signed under a sub-label of the biggest company in K-Pop at the moment, ADOR under HYBE Labels. This changes factors significantly.

ADOR's CEO Min HeeJin revealed that NewJeans' debut release was so successful that the group got paid their first salary right after their debut. This is not common at all in the K-Pop industry.

Min HeeJin credited it to the group's album sales being good.

The group sold 311,200+ copies in first-week album sales for their self-titled debut EP "NewJeans". They then sold almost double the number of album copies for their most recent release. The group's single album "OMG" sold 701,200+ copies in the first week.

 

The Highest-Earning Group That Took A Little While To Earn Money: BTS as a Case Study

As a final case study, we'll use the highest-earning K-Pop group, BTS.

BTS is known to have achieved some of the most outstanding achievements in terms of album sales, concert revenue, and more. For example, their series of live concerts in Los Angeles in 2021 generated 40 billion Korean won. This is before including the sales from YouTube Theater and online streaming.

In 2021, it was reported that BTS made an estimated $50-60 million USD from various sources, including music sales, merchandise, and virtual concerts.

Their highest sales for first-week album sales are also at a huge figure of 3,378,600+ copies for their "Map of the Soul: 7" album released in 2020.

BTS debuted in 2013 under Big Hit Entertainment, but it took them a few years to start earning significant income. According to reports, the group struggled financially during their early years and lived together in a small apartment where they often had to share a single meal between themselves.

BTS gained significant popularity in South Korea and internationally around 2015, which led to increased music sales, merchandise sales, and concert ticket sales; which changed the income they were earning significantly. This proves that it takes different lengths of time to earn money depending on the group and their career.

Now that we've noted the difference in idols' earning potential/spectrum depending on their careers, let's look into the costs of becoming one...

 

Costs of Becoming a K-Pop Idol

Pre-debut Expenses and Debt

It is no secret that trainees often rack up debt during their trainee period due to the expenses incurred by the company whilst training and taking care of them. Idols will often have to pay off this debt after debuting before they can start enjoying their profits. The costs include housing, food, transportation, lessons, and more - depending on the company.

This is over and above the fact that the K-Pop group/artist's company will likely take a share of that money first. In some cases, idols can sign a contract for a 50/50 split share of profits (the most common agreement), and sometimes they can take a lesser or greater share of the profits.

In some cases, idols who've debuted might not even see their earnings before their idol career comes to an end because it all goes to paying off their debut. Former Ladies Code's Ashley once shared that she did make money as a member of the group, but she didn't get to use any of it because it all went to paying off her debt. This is despite being active for 7 years.

If you would like to read more about the other hardships that K-Pop idols face as trainees and after their debut, check out this article.

Varying Expenses for K-Pop Trainees

The above also depends on the size and financial situation of the entertainment company. In some cases, trainees might not receive money from their company at all. They might have to live off of the allowance that their parents provide them with. However, some trainees, have to opt to get part-time jobs because their parents can't financially support them enough or at all.

If you consider that some companies don't provide trainees with housing, food, or transportation costs, this can be quite cost-intensive. Some companies might provide means to cover certain expenditures, too. Bigger companies are also more likely to provide more of these costs than smaller companies. For example, if the trainees live far from the company (say outside of Seoul or are coming from overseas), the company might set up a dorm where they can stay. Again, this is a case-by-case situation.

So, this raises the question, what happens if your time as a trainee is cut short but you've already incurred debt?

Well, in this case, you may or may not have to repay the debt cost back to your company. It depends on why you've left. If you were cut as a trainee by the company, they might not calculate your debt. However, if you leave on your own accord, it might be a different story.

 

Earnings as a Debuted K-Pop Idol

Do K-Pop Idols Know How Much Their Group Earns?

No. In most cases, only the company knows how much a group earns unless they've disclosed the amount publicly. Members will likely be aware of their individual earnings but not overall earnings as a group.

 

How Soon and How Often Do K-Pop Idols Get Paid? - Using MBLAQ's Mir as a Case Study

It's common knowledge that rookies will only start earning money after a year to a year and a half of their debut if they are doing well.

In terms of pay frequency... This is also quite dependent on the company in question. For example, MBLAQ's Mir mentioned getting paid every 3 months. He remembers that his first paycheck (after three months of promoting busily) was 1,500,000 KRW (about 1,162 USD) at the time. Keep in mind that MBLAQ made its debut back in 2009.

Mir said that his expectations rose upon receiving that amount the first time. However, the next time he went to receive his pay, he either received very little money or no money at all. Reason being... His contract had a clause that meant certain promotional activities that cost a bit more for the company or even commission from certain activities would be deducted from his pay or go straight to the company.

However, after the release of their next album, despite the album production cost and other expenses, he managed to earn 5,000,000 KRW (about 3,870 USD).

This was all before the Hallyu wave (the Korean wave) officially began, before the group started doing concerts, and before the members started doing individual activities.

Mir especially advocates for the fact that idols can earn money regardless of how much of a 'top star' they are.

 

How Do K-Pop Idols Earn Their Income?

You might be wondering about how the avenues through which K-Pop idols earn their income, too.

There are a number of ways such as through gigs (variety shows, music shows, etc.), events (festivals, concerts, etc.), radio broadcasts, commercials & brand endorsements, royalties for songwriting credits, and album sales & streaming commissions.

Although these are the typical ways for idols to earn an income, their contracts may affect the ratio of money incoming.

It's important to note that K-Pop idols all have unique/complex contracts with their management companies, which means the money generated from these endeavors will somewhat vary.

There are just some of the factors that affect how K-Pop idols earn money.

What are your takes on how K-Pop idols earn money? Let us know your thoughts in the comments!