Why the negative news around the K-pop scene will not dampen its success

The year 2019 has been a challenging one for the K-pop industry, which has been plagued with scandals and other negative news. To the outside world, the K-pop industry has always tried to present a pristine idol image. But true K-pop fans have always known about the darker side of the industry, such as unfair, long-term contracts between K-pop idols and their management agencies, also known as "slave contracts"; and overworked K-pop idols as well as those who fall into depression as a result of ruthless bullying by netizens.

Most recently, the cracks started to shatter as  YG Entertainment's founder and former CEO Yang Hyun-suk made headlines after being investigated for allegations of illegal gambling and arranging sexual services for foreign investors. Meanwhile, K-pop stars Jung Joon-young and Choi Jong-hoon were also sentenced for rape and sharing secret sex videos. And not too long ago, news broke of the alleged rigging of votes by producers of Korean TV shows Produce X 101 and Produce 48.

With K-pop at the zenith of its prominence and the Korean Wave raging, it is left to be seen if such incidences represent a PR problem that is festering and could potentially spill over. Industry players Marketing spoke to said that those familiar with the industry would not be surprised at the scandals that have surface, as they are not new. SPRG's GM - Singapore, Edwin Yeo, said the news making headlines globally isn't so much of a PR problem for the K-pop industry but rather, a problem of the way the industry conducts its business.

You can't gloss over the problem with spin, and the only way things get better is that there is a total reform of the music industry in South Korea.

Such reforms, however, are hard to execute, Yeo said. The industry is still wildly popular and that means big money, which means there are power structures in place that inevitably lead to the types of scandals that take place.

"So long as K-pop remains as popular as it is, the power structures that feed off the success of the K-pop stars will fight tooth and nail to preserve their status within the industry," he said.

Despite the scandals, Yeo said industry reputation and the K-pop brand are two separate things and the erosion of one doesn't necessarily lead to the decline of another. While individuals might be outraged at the incidents going on, the genre's appeal will not disappear overnight.

"Similarly, South Korea itself remains a favoured destination for tourists and even expats, despite its reputation for toxic work cultures, especially the way women are treated. You often feel that for all its flaws, Korea produces great products - from K-pop to k-drama to mobile phones to cosmetic, and despite the problems the country has, their products are the one that ultimately give the country a positive reputation," he explained.

Agreeing with him is Ashvin Anamalai, chief strategist of Be Strategic, who said that the K-pop industry has fundamental flaws that have managed to remain hidden until more recent times. In this age of social awareness, no amount of PR can protect the industry from itself, Anamalai said, adding that what was once a secret is now more of common knowledge, that fans choose to accept. "K-pop today can be compared to Hollywood in the 1940s, where executives held a substantial amount of ownership power on talent. In the case of K-pop it would sit on the few major management companies now known for their ill-treatment of hopeful youth," he said.

Anamalai added that until the talent themselves realise and fight for better conditions than the draconian contracts offered today, content-hungry fans, will choose to accept the "perfect" imagery that K-pop is known for.

On the other hand, Sunita Kanapathy, head, PR and influence at Ogilvy Malaysia, said the squeaky clean image of K-Pop seems to have taken a beating this year in the wake of a range of scandals. She believes that these scandals did bring into question consumers' continuing fascination and undying love for Hallyu (Korean Wave) that has captured Malaysia and the Southeast Asian region.

More importantly, this is not merely a PR problem. It goes much deeper and points to a darker side of the K-pop culture.

Due to this, Kanapathy said it could threaten to end the Korean Wave.

Similar to the #MeToo movement, exploitation of men and women, especially those who are younger, within the entertainment industry is not new. "Insiders say what we are hearing now is just the tip of the iceberg of what actually happens behind the scenes in K-pop. In a sense, these exposé is an extension of #MeToo by the very nature of what has been happening and it has to stop," she explained.

"The Korean economy, as the central benefactors of the Korean Wave, will definitely take a beating should what is arguably Korea’s best export, be adversely affected. As such, the Korean government needs to step in, take stock, be completely transparent and do a hard reset if K-pop is to continue its reign," Kanapathy added. That said, until more is known about the extent of the involvement of K-pop personalities, it does not seem to be an epidemic as consumers might have initially thought.