[Core Intellectual Property] The Secret to K-pop's Korean Wave According to an IP Business Expert

IP Business at the Heart of the Korean Wave Phenomenon
Ha Sejung, CBO of BeMyFriends,
Leads Global Fandom Expansion through Artist IP

Ha Sejung, CBO of BeMyFriends, is being interviewed by Asia Economy. Photo by Yoon Dongjoo

"As K-pop has shifted from being simply music to listen to, to music that inspires action, the business model of leveraging an artist's charm and originality as intellectual property (IP) has emerged as a core element in the entertainment industry."

Ha Sejung, Chief Business Officer (CBO) who joined BeMyFriends, a fandom business specialist company, in 2022, emphasized that "IP business is now at the center of the recent Korean Wave phenomenon." As an IP business expert, she focused on IP business at companies such as Netmarble, CJ ENM, and Big Hit Entertainment (the predecessor of HYBE). She developed new business models, such as fandom marketing using BTS characters like BT21 and TinyTAN, as well as experiential pop-up store business models. Later, at BR Korea, she promoted a collaboration between the Pok?mon character and the Baskin Robbins brand, sparking a Pok?mon boom.

The entertainment sector is considered the most powerful IP business. This is because not only are the artists themselves IP, but also the albums, music, and merchandise generated by the IP all fall within the realm of IP business. BeMyFriends is a fandom business specialist company established in 2021. In a recent interview with Asia Economy, CBO Ha stated, "The originality of artists creates rich stories and resonates with many fans," and added, "K-pop culture has evolved as music has shifted from something to watch to something to participate in." She continued, "At Big Hit, we confirmed that fandom business could be sufficiently expanded into the global market through BTS's IP."

BeMyFriends operates an online platform called 'b.stage' that connects creators and global fans. More than 800 global stars and content IPs, including G-Dragon, Son Heungmin, the musical 'Kinky Boots', and the e-sports team 'T1', are meeting fans on b.stage. Now, even when releasing new music or videos, the company tries to avoid the sleeping hours of overseas fans by taking time differences into account. CBO Ha said, "Sixty percent of those who enjoy K-content on BeMyFriends are overseas fans."

As the influence of global fandom grows, K-POP pop-up stores are also rapidly expanding overseas. In particular, Japan is a country where the fandom culture and market are highly developed, to the extent that artist-specific merchandise is traditionally released. Recently, there has also been a growing desire among Japanese artists to hold pop-up stores or carry out activities in Korea.

A pop-up store planned by Be My Friends to celebrate the 10th anniversary of the idol group Monsta X's debut. One wall was filled with albums released so far, photos from their activities, and messages from fans.

She does not refer to the phenomenon of 'flash stars'?those who become briefly popular and then fade away?as fandom. "A fandom begins as a tightly knit group formed by the emergence of loyal 'superfans,' and grows like a snowball as more join. To foster such a fandom culture, authentic communication and marketing are crucial." She added, "Just because a product is artist merchandise doesn't mean fans will automatically like it. Recognition comes only when aspects such as quality and design are taken into account." To achieve this, she conducts in-depth research into the appeal and strengths of rookie artists and even interviews fans directly.

Since January last year, the company has introduced an 'on-site pickup' system, where fans can pre-purchase goods for pop-up stores online and quickly collect them on-site by scanning a QR code. This reduced the time it takes for one person to make a purchase from about 3 minutes and 30 seconds to less than a minute. The system was also applied during the Korean concert of Japanese singer-songwriter Aimyon in April, reducing inconvenience such as open runs or long waiting lines. CBO Ha explained, "Because we can collect data on who prefers which products, we can reduce inventory and utilize this information when planning the next project."