Potential Expansion into Middle East Markets Explored During State Visit

Courtesy of HYBE

Hybe Chairman Bang Si-hyuk met with United Arab Emirates President Mohamed bin Zayed Al Nahyan on Tuesday to discuss potential cooperation in K-pop ventures. The meeting took place during President Al Nahyan's two-day state visit to South Korea. While specific details of their discussion have not been disclosed, it is reported that Bang proposed expanding K-pop’s presence in the UAE, including the possibility of hosting Hybe’s “The City” project in the country.

“The City” project is a citywide festival that transforms an entire city into an immersive experience for visitors attending Hybe’s K-pop concerts. This project has been held in 12 cities across South Korea, the US, Japan, and Thailand.

The UAE has not been a major market for Hybe due to low profitability. Enhypen, a group under Hybe's subsidiary Belift Lab, performed in Abu Dhabi at the Hyperound K-Fest last year.

An industry source commented, “The Middle East is still a small market for the K-pop industry, and Hybe is currently focused on expanding business in the US, Japan, and Latin America. However, there are many K-pop fans in the UAE and Saudi Arabia, so Bang is likely exploring future project opportunities there.”

According to a study by the Korean Foundation for International Cultural Exchange, the UAE ranked third among 26 countries in favorable reception of Korean content, behind Indonesia and India and tied with Thailand.
 

▲ HYBE Chairman Bang Si-hyuk / Courtesy of HYBEMeanwhile, SM Entertainment has been actively expanding into the Middle East, particularly Saudi Arabia. SM founder and former chief producer Lee Soo-man signed a memorandum of understanding with the Saudi Arabian Ministry of Culture on November 29, 2022. This agreement includes cooperation in producing “S-pop,” nurturing local talent through auditions and training systems, establishing a content creation studio, and hosting large-scale K-pop concerts.

In August 2022, SM Entertainment also signed an MOU with the Saudi Arabia Ministry of Investment to share its expertise in producing artists and using its intellectual property to create and sell merchandise.

SM Entertainment’s efforts in Saudi Arabia could provide an advantage in the Middle Eastern market over other K-pop agencies. The Korean Foundation for International Cultural Exchange’s 2023 report on foreign consumption of Korean cultural content indicated that Saudi Arabia had the highest per capita spending on Korean content in the Middle East after the UAE.

Super Junior, a K-pop boy group under SM Entertainment, was named ambassador of the Saudi Arabian Authority in May 2023, becoming the first artist in the world to hold this position.

Kakao and Kakao Entertainment, which acquired a combined 39.87 percent stake in SM Entertainment, are also looking to enhance their market presence. Kakao Entertainment met with officials from the Saudi Arabia Tourism Authority on May 23, 2023, to discuss leveraging Kakao Entertainment’s intellectual property to promote cultural exchange.

Sayart

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