$10 Million Just to Stay in the Game: K-POP's Small-Agency Miracle Is Getting Harder

For a rookie K-POP group, debuting is only the beginning. Staying active long enough to build an audience is becoming an increasingly expensive challenge.

That question has taken on new relevance with rookie girl group UNCHILD, whose first comeback was postponed just five months after their debut. The six-member group, launched by High Up Entertainment roughly six years after STAYC, debuted in April with the single album "We Are UNCHILD." Their second digital single, "TiNG TiNG," was scheduled for Sept. 2, and the group had already begun rolling out logos, teasers and other promotional material.

On Aug. 24, High Up announced that the release had been postponed due to "internal circumstances at the company." The agency said a new schedule would be announced once it was confirmed.

Nearly a month later, no new release date has been announced. The lack of updates has prompted speculation online about the group's future, including rumors that UNCHILD could disband.

High Up has not announced that UNCHILD is disbanding, nor has it said the postponement is related to financial problems. But the uncertainty surrounding a group less than six months into its career points to a broader problem facing K-POP groups outside the industry's biggest agencies. Debuting a group is expensive, but keeping it active long enough to have a real shot at success can cost far more.

Industry estimates suggest those costs have risen significantly over the past decade. Around $2.1 million (3 billion won) was once cited as enough to launch a rookie group and fund its early activities. More recently, industry insiders have put the amount needed to establish a group at closer to $7 million (10 billion won).

That figure is not the cost of a single debut album. It includes the money spent before and after debut as a company tries to build an audience for a new group.

Expenses begin with training, housing, lessons and staff, followed by songs, choreography, recording, styling, music videos and promotions once a lineup is finalized. Most unknown rookies are unlikely to earn that money back from their first release. Agencies therefore have to keep investing through several releases while waiting to see whether the group can gain traction.Music video costs alone have risen considerably.

A video that reportedly cost around $105,000 to $140,000 five or six years ago can now cost $280,000 to $350,000 for a higher-end production. More elaborate projects can cost $560,000 to $700,000 or more.

"The cost of creating a girl group and keeping it active for about two years is at least $10 million," the head of a small-to-midsize entertainment agency said. "And those costs just keep going up."

There is also simply more content to make. A rookie rollout now commonly includes teasers, short-form clips, behind-the-scenes videos, social media campaigns and other original content alongside the music itself. Agencies hoping to reach overseas fans from the beginning also have to factor in global promotion.

Part of that pressure comes from how much K-POP itself has grown. Major agencies have raised expectations for what a debut should look and sound like, from music videos and styling to choreography and social media content. Smaller companies are competing for attention on the same YouTube, TikTok and streaming platforms, even when their budgets are nowhere near the same.

The gap is significant. According to 2024 data from the Korea Creative Content Agency, large entertainment companies spent an average of about $30.2 million (43.11 billion won) a year on music production, compared with roughly $1 million (1.49 billion won) for smaller companies. The figures do not represent spending on individual groups, but they show the stark difference in resources available when a release fails to deliver immediate results.

For a major agency, an underperforming debut does not necessarily prevent a rookie from returning with another album. For a smaller company, the first loss can make financing the next comeback much more difficult.

There are still groups that manage to break through from outside the industry's largest companies. RESCENE, under The Muze Entertainment, is one recent example.

The girl group debuted in 2024 without the level of immediate attention that often surrounds a rookie from a major label. Instead, RESCENE continued releasing music and content while gradually building its audience.

The bigger wave of attention came later. Online content featuring the members began gaining traction, bringing more people to the group and helping older releases such as "LOVE ATTACK" find new listeners. The increased attention was eventually reflected in the group's results, with first-week sales for a later release surpassing 100,000 copies. RESCENE also began receiving more opportunities in advertising and on the university festival circuit.

The group's growth shows that a smaller agency can still produce a breakout. It also shows why surviving the period before that breakout matters.

Success in K-POP does not always come with a debut. A song can suddenly gain traction months after its release, while a viral clip or an unexpected moment involving one member can lead listeners back to a group's music. But a group has to remain active long enough for that moment to arrive.

The financial gap between large and small agencies has always existed. What has changed is how much it costs to keep trying. As K-POP has grown, so have expectations for the music, performances, visuals and content surrounding every release.

For smaller K-POP groups, having enough money to debut is only part of the challenge. Increasingly, what matters is whether their agency can afford to give them a second, third or fourth chance to be noticed.