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Industry giants join forces on Phenomenon
South Korea’s four largest entertainment agencies will finance and organize a new global K-culture festival without government funding, the country’s Culture Ministry said.
A special-purpose company established by HYBE, SM Entertainment, YG Entertainment and JYP Entertainment will host the event, called Phenomenon, using private capital. Park Jin-young, JYP’s founder and co-chair of a presidential committee on popular culture exchange, told lawmakers that the four companies contributed equal amounts of capital and hold equal voting rights in the venture.
Profits will not be distributed to shareholders. Instead, all proceeds will be reinvested in future editions and the festival’s expansion, according to the ministry. The South Korean government and the four-agency company will each own 50% of the festival’s domestic and international trademark rights.
Government funding targets tourism and smaller businesses
The government has allocated 15 billion won for the presidential popular culture committee next year, but the Culture Ministry said the money will not cover the festival’s operating costs. It is intended to help small and midsize K-culture businesses participate and to support programs designed to attract foreign tourists and encourage return visits.
The committee has projected that Phenomenon could draw about 520,000 visitors and generate an economic impact of roughly 1 trillion won. Asked by an opposition lawmaker whether those estimates were inflated, Park said he did not know precisely what data underpinned them and acknowledged that an overly ambitious projection could become a burden.
The inaugural festival is scheduled for December next year, primarily at Seoul Arena and the KINTEX convention center in nearby Goyang. Plans combine K-pop concerts, fan-voted awards and exhibitions and interactive programs featuring K-culture companies. Its name blends the words “fan” and “phenomenon,” referring to a phenomenon created by fans.
Trademark filings extend to the United States
The project has faced scrutiny over whether the participation of Korea’s dominant music agencies amounts to preferential treatment. Park rejected that argument, saying the companies’ leading artists could earn two to three times as much by holding separate concerts. He said the agencies joined because of the festival’s long-term vision and its potential benefits for other industries.
Park also acknowledged procedural problems after JYP filed first for trademarks covering Phenomenon and the planned awards name, Fandemonium, in markets including the United States, Japan and Mexico. He said the process was not handled normally and that the rights would not remain with his company.
The presidential committee said the applications were filed early to secure rights quickly in overseas markets and would be transferred to the company established by the four agencies.
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