Why Is It So Hard for Some K-POP Girl Groups to Make Money?

K-POP artist settlements have come under renewed scrutiny after fromis_9's Jiwon revealed that she earned little to no income during her years of promotions, bringing renewed attention to the industry's long-standing profit structure.

While her comments drew widespread attention, industry insiders say the issue extends far beyond a single group. For some girl groups, strong public recognition does not always translate into strong revenue, making profitability one of the industry's biggest challenges.

Unlike many entertainment industries, K-POP requires significant upfront investment. Agencies spend years training artists before debut, covering costs ranging from vocal and dance lessons to housing and living expenses. After their debut, companies continue to invest heavily in album production, music videos, styling, marketing campaigns and overseas promotions. Because agencies generally recover these investments before sharing profits with artists, many artists wait years before receiving meaningful settlements.

"The public often assumes that K-POP artists start making money as soon as they become famous, but profitability is a completely different matter," one industry insider said. "Even if a group gains recognition, it can take years to recover the initial investment."

The challenge is particularly evident for some girl groups. While boy groups often benefit from highly organized fandoms that repeatedly purchase albums, merchandise and fan club memberships, some girl groups rely more heavily on casual listeners and public popularity. As a result, chart success and name recognition do not always translate into immediate profits.

An industry insider said agencies now place greater importance on securing loyal female fandoms, whose purchasing power is often considered more stable and sustainable over the long term.

"Female fandoms generally show stronger purchasing power across albums, merchandise and live events," the insider said. "That's why many agencies prioritize building a dedicated fandom rather than relying solely on public recognition. A group may be widely known, but without a fanbase that consistently supports the group through purchases, it can take much longer to achieve stable profitability."

The insider added that some girl groups with predominantly male fanbases may face greater challenges in monetizing their popularity, even when they perform strongly on digital charts and enjoy broad public recognition.

Groups such as OH MY GIRL and fromis_9 are often cited as examples. Both built strong public recognition and achieved commercial success, but members have spoken openly about the difficulties surrounding settlements during their earlier years.

Former fromis_9 members have previously hinted that settlements were not easy despite the group's popularity in Korea and overseas. OH MY GIRL member Mimi has also spoken openly about her financial struggles. Appearing on a YouTube talk show, she revealed that she had "lived with a minus bank account" for nearly eight years before earning a stable income.

"I only started making money after eight years," Mimi said, explaining that much of her income later came from individual activities.

Her story also reflects another growing trend in the industry. As group activities do not always provide stable income, some artists have increasingly expanded into personal YouTube channels, variety show appearances and brand partnerships. Income from these activities is often handled separately from group settlements, giving artists another source of revenue.

This does not mean successful K-POP artists are struggling financially. Rather, it highlights how long the road to financial stability can be, even for artists who appear successful from the outside.

Industry officials say profitability remains one of the biggest hurdles in K-POP, where popularity and profits do not always grow at the same pace. A group may gain millions of views, chart well on streaming platforms and attract widespread public attention, yet still require years to achieve stable profits.

Behind the polished performances, luxury brand deals and sold-out events lies a different reality: for many artists, fame and financial security do not arrive at the same time.