Huge revenue from the entertainment industry
As BTS and Blackpink are about to return to full group activities, global audiences are paying attention to the comeback of the two top Kpop groups.
Over the years, with the development of the Hallyu wave, Korea has expanded its influence and developed the economy thanks to popular culture.
Forbes magazine assessed that BTS alone had generated nearly 5 billion USD for the Korean economy before the members enlisted.
In 2004, the Kpop wave contributed 0.2% of South Korea's GDP, worth about 1.87 billion USD. But by 2021, Kpop's global popularity helped Korea earn about 12.45 billion USD.
The Kpop market is valued at 8.1 billion USD in 2021 and is estimated to reach 20 billion USD in 2031. Profit comes from many sources, including selling physical albums, holding concerts in Korea and globally, organizing entertainment events, advertising contracts.
In the entertainment industry structure, music also holds an important position. In 2024, the Korea Music copyright Association (KOMCA) collected 436.5 billion won in royalties due to increased demand for music in streaming, broadcasting, performing and export.
Meanwhile, Korean movies also have a global influence, helping actors achieve a remuneration of hundreds of millions/episode, attracting businesses to invest and creating an entertainment brand loved throughout Asia.
Tax payment issues in the Korean entertainment industry
Along with the huge numbers that artists earn each year, public opinion is increasingly interested in the issue of paying their personal income tax.
According to Chosun, success and income in the Kpop industry have changed and the income chart is very diverse.
In the 2017-2021 period, the annual accumulated income of 7,720 singers declared the income to be 515.6 billion won. About 1% of the highest-income group, including 77 singers, have accumulated 355.6 billion won, accounting for 68.9% of the total income of singers.
Therefore, the amount of money earned from artists is also a huge number. Most Korean artists pay taxes regularly and sufficiently.
In 2020, IU was named honorary ambassador for the National Tax Service of Korea (NTS). This agency assessed IU as not only diligent in paying taxes but also actively participating in charitable activities for society.
In contrast, many Korean stars have been involved in scandals due to being investigated for tax, such as Song Hye Kyo, who was fined 3.5 billion won after a 2012 tax investigation, Kwon Sang Woo, who was charged about 1 billion won in 2020, Park Hee Soon, who had to pay an additional 800 million won.
Actress Honey Lee was even charged up to 6 billion won (about 100 billion VND) in taxes, including income tax. This is the highest fine ever recorded in the Korean entertainment industry.
Due to income from many sources, many singers have established one-man companies to evade taxes by collaborating with other companies. The National Tax Administration of Korea said it is stepping up supervision of this group of subjects.
A representative of this agency said: "Many people who are charged tax are often at fault for accounting or tax agents' errors, but through detailed inspection, it is impossible to rule out the possibility of tax evasion purposes".
