Singer, producer, and agency founder Kim Jaejoong shared his views on how smaller K-pop companies can survive in a market dominated by major entertainment labels.
On September 2, Jaejoong delivered a keynote speech at MU:CON 2026 Global Music Fair in Seoul. He spoke as the founder and CEO of iNKODE Entertainment, the company he established in 2023.
Jaejoong argued that smaller agencies should not try to compete with large companies by simply copying their strategies with less money.
He said, “Small and mid sized K-pop companies need to compete differently from large corporations. What matters is how accurately you focus your resources where they are needed and how appropriately you change your business direction.”
According to Jaejoong, one of the most dangerous ideas for a smaller agency expanding overseas is believing it can reproduce what a major company does on a smaller budget.
He explained, “The most dangerous thought is, ‘Let’s do what the big agencies do, but with a smaller budget.’ If you blindly follow the methods of large companies, you can only end up with a weaker version.”
Jaejoong also stressed that agencies should approach different international markets with different strategies instead of using one formula everywhere.
He pointed to North America and Asia as examples, saying, “The American and Asian markets are completely different.”
According to him, individuality and attracting new fans are especially important in North America, where the potential risks and rewards can both be high. In many Asian markets, he said maintaining close relationships with an existing fandom and creating repeated interactions can be more important.
Jaejoong believes one advantage smaller entertainment companies have is their ability to make decisions quickly.
He said, “The advantage smaller companies have over large companies is that their organizations are simpler, so decisions can be made very quickly.”
He added that knowing when to invest and when to stop is important when resources are limited, allowing companies to test a market and learn from it without overspending.
Jaejoong also called for a stronger industry wide data system so smaller Korean content companies can learn from one another’s successes and failures.
He explained that one company may fail in a certain country, only for another company to repeat a similar mistake years later because the information was never properly shared across the industry.
Jaejoong said he hopes a network can be created that allows Korean content companies to learn more quickly from shared market data.
After debuting with TVXQ in 2003, Jaejoong built a long career across South Korea, Japan, and other Asian markets before expanding into solo music, acting, and producing. Through iNKODE Entertainment, he is now involved in developing artists including SAY MY NAME, KiiiKiii Up, and BAYON.
His message at MU:CON 2026 was clear: smaller K-pop companies may have fewer resources than major labels, but copying the biggest companies is not necessarily the path to success. Instead, he believes they need to move faster, understand each market, and build strategies around their own strengths.
