How will China’s strict new entertainment rules affect K-pop idols? Fans of BTS and Blackpink can say goodbye to bulk-buying albums, paid votes on TV shows and gender-bending fashion …

- BTS’ Army and other fan clubs are notorious for bulk-buying albums, but Tencent’s music streaming service, QQ Music, has slapped customers with restrictions
- Twice, NCT and Shinee’s agencies have already seen stock prices drop as the Chinese government cracks down on ‘immoral’ entertainers to ‘improve’ fan culture

The Chinese government’s attempts to regulate its entertainment sector will affect the K-pop industry, because China is the top source of revenue for Korea’s leading entertainment agencies.

Total exports of K-pop albums in July this year surged 3.6 times year-on-year to US$26 million (30.7 billion won). Sales coming from China reached US$8.25 million, which was the biggest amount ever. But the Chinese regulation is expected to affect this trend, while local securities firms say they will have to see the actual impact of the regulations during the third quarter of this year before estimating monetary losses.
“Because album sales are based on individual purchase, it is difficult to accurately predict the impact of the restrictions until we confirm the decline in sales in the third quarter,” said Park Da-gyeom, a researcher at Hi Investment & Securities.


A day after SARFT’s announcement, the stock prices of Korea’s three representative K-pop firms all declined.