Modhaus, SM Say AI Is Lowering K-Pop Entry Barriers, Creating Openings for New Agencies at EastPoint: Seoul 2026

Artificial intelligence and blockchain are lowering barriers to entry in K-pop, creating new growth opportunities for upstart agencies, industry executives said. But they also cautioned that the technology should be adopted carefully, as fans remain resistant to AI encroaching on artists' creative domain.

At the global private Web3 conference EastPoint: Seoul 2026, held on September 28 at the Westin Josun Seoul Parnas in Seoul's Samseong neighborhood, SM Entertainment Chief A&R Officer Lee Sung-soo and Modhaus Chief Executive Officer Jeong Byeong-gi discussed structural changes in the K-pop industry, the use of AI and the future of fandoms.

Lee said advances in information technology, AI and blockchain are reshaping an industry long centered on major agencies. In the past, album production and distribution networks were central to expanding the business. Now, companies can reach fans worldwide and market content in new ways even without physical album distribution networks.

"There is a major opportunity for companies that can quickly build and design systems suited to the current era," Lee said. New agencies can be competitive because they are not bound by existing business structures and can apply new technology and fan-participation models from the outset, he added.

He said large agencies are responding through multi-label strategies. As K-pop has grown beyond a single music genre into an industry spanning diverse genres and production methods, companies need separate production capabilities and business strategies tailored to each genre.

Jeong emphasized that the K-pop industry should take a cautious approach to AI adoption. "K-pop may be the market that accepts AI most conservatively," he said. "Right now, K-pop fandoms are not fully ready to embrace AI."

Fans distinguish between using AI to reduce production time and costs and allowing it to enter an artist's core creative domain, he said. They are particularly sensitive to AI involvement in elements that shape an artist's identity, including music and image.

Jeong said that reaction should not be dismissed simply as resistance to technology. In his view, it is preferable to expand the use of AI only after sufficient consensus has formed within fandoms.

The way the industry measures the value of fandoms is also changing. In the past, the focus was on how much money fans spent on albums and merchandise. More recently, the key gauge has become how much time they devote to content and how actively they participate.

"Modhaus operates a participatory governance model in which fans vote on the direction of artists' activities," Jeong said. But requiring fans to participate in every decision can lead to fatigue, making it necessary to manage both the scope and frequency of participation.

Lee also stressed that K-pop must preserve its musical identity even as it embraces technological innovation. The concern is that K-pop's distinct character could weaken as content is localized for global markets.

"The most important things are the essence of music and the fans who consume it," Lee said. "Even when using new technologies and business models, K-pop can continue to grow only if music and fans remain at the center."

Kim Soo-hyun, Hankyung.com reporter / Lee Soo-hyun, Bloomingbit reporter ksoohyun@hankyung.com