[Full English Translation] "The truth of SM's LA concert" 프레시안-SM 엔터테인먼트 LA 공연의 진실 : http://bit.ly/xCXX01

Written by: Professor of Korean National University of Arts, Dongyun Lee

Translated by: @dlwpdldhkdlwp (There might be many grammatical and spelling mistakes, I hope you have fun(?) reading this article)

On September 4th, 2010, SM entertainment held a concert in LA, which gave an important opportunity for transnationalization of K-pop. This concert in LA was second place where 'SM Town Live 10 World Tour' was held;and it gave the most significant meaning for the K-pop's global pilgrimage starting from Seoul to Shanghai, Tokyo, Paris, New York, and other major cities around the world. 'SM Town Live' in LA, a stronghold of American and World Pop music, fired a flare for K-pop to get out of the Asianization. 'SM Town Live' is a joint concert of singers under SM on large scale. Previously the tours only held in Asian countries, but after the concert in LA they had expanded to the US and Europe.

Even before the tour Korean press promoted this tour. The Korean sites were plastered with promoting articles like 'they are preparing a chartered plane, worth a billion Won(Korean currency),for the splendid concert in LA','Hollywood Star Jack Nicholson bought the ticket for the concert.' After the tour in LA, the Korean media praised 'SM Town Live in LA' everyday. Korean international sites were flooded with articles with titles such as "A great success in LA 'splendid start to US'"(Seoul Newspaper), "TVXQ,SJ,GG.. SM's leads possessed LA" (Newsen, "The wave of K-pop in US... 15,000 international fans went wild" (NocutNews).

However a question arose as Korean presses started to praise at the same as if they have made a promise. Was the concert really successful as Korean presses reported? There are two inconvenient truths hidden behind the 'SM Town Live in LA.' The first one is around 20 Korean press including daily paper, internet media, broadcasting companies went out to cover the news by riding the chartered plane by SM. SM also paid for all the expenses including airplane, hotels, and others needed for those Korean press. It might have been natural that the internet sites were flooded with those articles after the SM's concert in LA because those reporters, who received every facility got to worth one's salt.

The second incontinent truth is if all of the audience bought their tickets. According to Korean media, 15000 people bought tickets and 70% of them were Non-Asians. However, the audience who have attended the concert testified the real concert was different from those articles. Some said most of the audience received free tickets in order to get in. Some Hispanic audience said they did not even know who was performing that night. Some audience witnessed people giving out free tickets outside of the venue. The venue was not filled by '70% of non-Asians.'It was actually mostly filled with Asians and Hispanics. Sure, many people actually bought tickets, but someone gave out massive amount of tickets in order to fill the venue. The number of audience who bought tickets that the media has reported can be suspicious. The Staples Center in LA, that the author visited in person, has 2,5000 seats and it can have over 3,5000 seats including standing tickets. Regarding the set of the stage, they have to sell over at least 2,5000 seats in order to be sold out. The articles such as "Fans filled 1,5000 seats connected to the roof of Staples Center" (Hankyung; abbreviation of Korean Economy)are far fro the truth. Interestingly, articles regarding 'SM Town Live in New York', which was held in September 2011, contain the same number as those for LA. This could be a coincidence, but they, both, contain the same statistics of 1,5000 audience and 70% of them were Non-Asians. A question arises whether someone dictated press release to various Korean press.

'The connection between K-Pop and Stock Market'

More interestingly, the articles in favor of K-pop have not ended as articles. The final destination that articles of SM Town Live in LA, Paris, and New York aimed at the stock market. The media spotlight after these concerts carried out a crucial role to increase in value of SM's stock.

The entertainment production of Idol Pop is not simply calculated by the capital of management sales. Idol Pop can create not only the economical profit but also intangible assets in various methods. The capital stock related to Idol Pop is one of the most typical method. The final station of entertainment production company's profit structure is to be listed in KOSDAQ (Korea Securities Dealers Automated Quotations). The typical way to combine the production of Idol pop and capital stock is to use the level of awareness of idol stars, which gives the opportunity to the production company to be listed in KOSDAQ and attract investors to increase the value of company's stock. In 2008, President Lee Su-man, the largest shareholder of the front-runner of K-Pop 'SM Entertainment,' became the richest stock holder in entertainment-stock market after beating out Hallyu(Korean wave) Star Bae Yongjun. In 2008, the total value of stock of 'SM Entertainment' that President Lee Su-Man(Lee SM) held reached over 19 billion won. The value of stock that President Lee SM soared after the boom of SNSD(Girls's Generation)'s 'Gee.' In 2010, his stock value reached 100billion won as the popularity of SNSD has increased. In addition, after 'SM Town Live' in LA and Paris, the total stock value that President Lee SM held reached over 160 billion won. After the 'SM Town Live in New York' in 2011, it has reached over 200billion won. The stock value that Lee Su Man held, which was only 19 billion won in 2008, has soared over ten ties in three years.

SM is not the only K-Pop production company frantic to be listed in KOSDAQ and increase the value of stock. JYP became listed in KOSDAQ by back-door listing after retaining massive stocks of Jtune entertainment, where Rain belongs. Then, JinYoung Park and Miss A moved to Jtune and changed the company's name to JYP entertainment. Although JYP and JYP entertainment are perfunctorily two independent companies, but they will soon unite as they are the same company in fact. Based on the explosive performance of BigBang and 2NE1, YG entertianment also succeeded to be on KOSDAQ in 2011. Yang HyungSuk, the representative of YG, because the second richest stock-holder in entertainment field by obtaining stock worth over 140billion won.

The stock market is the place which has changed the most due to K-Pop wave. K-Pop related shares are extremely overrated compared with the scale of companies' assets and sales and the artificial bubble exists. The K-pop's closed entertainment production system, entertainment TV shows that support such system,and the media press exaggerate facts increase the value of K-Pop shares. Unlike in the past when idols ceased activities to prepare new albums, Idols, nowadays, cannot get rest because they have release new singles continuously. This also one of strategies to maintain and increase the stock value. The Idol Groups' activities with hardships and the media's coverage boil down to the capital stocks in the end.

'Broadcast: For whom the bell tolls'

During the last New-year season, idol groups occupied music programs of three major terrestrial broadcasting companies. Did producers order 'occupy broadcasting companies?' All music programs of three major broadcasting companies are captured by idol groups. Let us first look at the list of MC's and cast.

The list of casts of music programs of three terrestrial broadcasting companies during New Year Holiday, 2012

KBS Music bank (2012/1/20)
-Viewer ratings:5.00%
-MCs: UEE, Lee Jang-woo
-Cast: IU, T-ara, MBLAQ,Koyote, Dynamic Duo, Teen top, Touch,J-Cera,Fix,Wink,Dia,Sunny Hill,X-5,Soul Dive,Chaos,BoM,Electroboyz, Monday Kiz, Nine Muses,Fat Cat,ChoColat, Lee Hyun, NS Yoon Ji, Boyfriend, A Pink

MBC Show! Music Core (2012/1/21)
-Viewer ratings: 5.70%
-MCs: Tiffany, Yuri
-Cast: MBLAQ, T-ara & Coed School, Teen top, Sunny Hill, Nine Muses, Boyfriend, Dynamic Duo, NS Yoon Ji, A Pink, Rainbow Pixie, Fat Cat, Koyote, ChoColat, Chos, Wink, Lee Hyun, X-5

SBS Inkigayo (2012/1/15)
-Viewer ratings: 5.80%
-MCs: IU, Nicole, Goo Ha-ra
-Cast: Chaos, Park Hyun-Bin, Nine Muses, Lee Hyun, J-Cera, Fat Cat, Sunny Hill, Electroboyz, NS Yoon Ji, Dynamic Duo, A Pink, Boyfriend, Rainbow Pixie, Davichi, T-ara, Teen top, MBLAQ

As shown in the list above, over 90% of three major programs are filled with Idol groups. This statistics is greater than the one's before K-Pop wave. The most of cast overlap and the programs are conducted in similar way. If one looks at the casts, one can barely make difference between each program. These three programs do not have any musical difference and they exist to promote new K-pop idol groups pouring out. Why did this happen?

Most producers of music programs of broadcasting companies answer this is for the viewer rate; however, their average viewer rate of three broadcasting companies is little over 5% in reality. The conquer of idols over music programs is not caused for viewer rates but by complex problems. The most serious problem is that the entertainment departments of broadcasting companies set the base of program towards Idol groups to attract teenagers. This can be considered as a strategy to differentiate music program; however, this resulted killing K-Pop genre. The effect of music program also creates spin-offs. Idol groups start with music program and aim for other entertainment shows. Not only idol production companies want this, but also the entertainment departments wish for the same. According to a rumor which went around in broadcast circles in past, there has been tacit agreement of 'to appear in 3 entertainment programs per one music program' and a joke 'one appearance on TV causes better promotion than 100 appearances in Radio.' They share the same interests: the entertainment departments need to cast idol groups to music program to keep idol groups with high level of commodities for other entertainment programs, while new idol groups,that debut with rate of 50 groups per year, are obsessed with the appearance on music programs.

It is heart-stricken, but there were many cases of terrestrial and cable entertainment producers imprisoned for receiving 'rewards for PR' for allow make an appearance on TV. In 1997, 2002, and 2008, around 10 entertainment departments' main producers were e imprisoned by the prosecution. During the scandal of 'rewards for PR' with the world of singers, which I have also reported, in 2002, many entertainment producers were responsible for the act and some of them were even imprisoned. Most of producers whom claimed that they had been framed and innocent were indicted on bribery chargers in 2008. Some of them possessed stocks of certain entertainment producing companies. Receiving stocks instead of money became new way for the 'rewards for PR.' As major idol producing companies have finished to be listed on KOSDAQ,figuring out how much, and how the producers of entertainment department of broadcasting companies own shares of these idol companies can become an important evidence to understand the custom,although we wish this would not happen, of some K-pop idol groups concentrically appear in certain entertainment programs of broadcasting systems.

'A triangular alliance between K-Pop, broadcasting, and stock market'

According to my decision, K-pop producers, media, and stock market made a triple alliance for sure. Of course, I am not sure if their alliance was willful and public. However, it is certain that they help each other for their interests. What I am concerned about is that during this process, the truth of K-pop is distorted by the wrong information and intended scenario, and these distortions skew the environment of Korean pop music and pop culture. Doubts arise as this situation is not what the public wanted; and the interested parties sharing similar interests created artificial trend and formed invisible K-pop connection as it is unnatural for the broadcasting companies, media, entertainment business, and stock market are obsessed with idol groups. The triangular alliance of 'K-Pop, Media and Stock Market' is another version of reasoning 'Samsung Legend' with monopolizing the society, and MB's philosophy of state affairs, with some foul play, to become competitive and strong globally.

Professor of Korean National University of Arts, Dongyun Lee

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