The most powerful K-pop labels around HYBE are merging – with the aim of organizing a huge festival in 2027. What is behind “Fanomenon”?
The K-Pop genre has been booming for several years. Millions of fans have gathered around the genre of music, and the hype surrounding artists in the genre continues to grow. The band BTS in particular is probably the most prominent representative of the movement. Just this year, their comeback after a few years sparked great euphoria among fans. According to users on X, there was a real “war” for tickets in advance sales for their upcoming tour. There are currently new rumors circulating about the future of K-Pop.
Big players in K-pop are joining forces
According to an exclusive report by South Korean outlet Business Post, the four companies, which collectively represent the so-called “Big Four” of K-pop, filed a business combination report with South Korea’s Fair Trade Commission (FTC) on Thursday (April 16). Filing is part of the process of forming a joint venture.
The move is necessary for regulatory reasons because HYBE is considered a large corporation with assets of over 5 trillion won (around $3.4 billion), while SM Entertainment belongs to the Kakao conglomerate. An FTC representative told Business Post that individual filings cannot be confirmed, but noted that the length of review varies depending on the individual case.
K-pop live events are becoming increasingly lucrative
The joint venture comes as live music is increasingly becoming a central source of income for the largest K-pop companies. HYBE posted record concert revenue of 763.9 billion won (approximately $537.5 million) in fiscal year 2025, an increase of 69.4 percent year-on-year. In total, the company sent 12 artists on tour, playing 279 shows in 53 cities.
Further growth is expected for 2026, not least due to the ongoing BTS world tour “ARIRANG”, which is considered the largest stadium tour in the history of K-pop with 82 concerts in 34 cities and 23 countries. SM Entertainment also achieved strong growth: concert revenues rose by 53.6 percent to 34.5 billion won (around 23.8 million US dollars) in the fourth quarter of 2025. Expanded global tours by artists such as NCT DREAM, aespa and RIIZE, which helped the company achieve record sales in the quarter, made a significant contribution to this.
New K-pop music festival is coming
The joint venture is expected to be founded with equal stakes from all four companies. However, details regarding leadership and governance, including the appointment of the CEO position and the structure of the Board of Directors, have not yet been finalized. A possible name for the new unit is “Fanomenon”, a portmanteau of “Fan” and “Phenomenon”.
In terms of content, the joint venture will focus on planning concerts. The aim is, among other things, to organize a large-scale music festival in South Korea in 2027, at which artists from all four agencies will perform.
