What’s behind K-pop agencies’ Gangnam exodus?

“Things were so tough that there were times I hated it, but I wish I could go back to those days when we were at the height of our careers.”

Wheein of K-pop girl group Mamamoo said this during a recent online livestream, breaking down in tears. The four members, who were pursuing individual activities, have reunited after four years and are currently on a world tour. Her emotions appeared to stem from nostalgia for the group’s heyday.

Debuting in 2014, Mamamoo won fans over with songs such as “Yes I Am” and “You’re the Best,” which championed a confident image of women.

As the group reunites, the agency that nurtured it has also undergone a transformation. A visit on Monday to the Guui Station area revealed the new headquarters of RBW, the agency behind Mamamoo.

The building is imposing but its location is unexpected, outside both Gangnam and Hongdae, a neighborhood popular with young musicians. Instead, RBW has established its new base in Jayang-dong, Gwangjin District, in eastern Seoul — hardly an obvious choice for a K-pop agency.

K-pop executives moving into former legal district

RBW started out in Gangnam District in 2010. It later expanded through the acquisitions of DSP Media, which produced groups such as Fin.K.L and Sechs Kies, and WM Entertainment, home to artists including Oh My Girl and B1A4.

The new headquarters will house recording studios, practice rooms and offices for its affiliates.

“We established the new headquarters in Gwangjin District to bring our existing business divisions and affiliates together in one place, improving decision-making and the efficiency of content production,” RBW CEO Kim Jin-woo said.

Next to the RBW building, where interior work is still underway, is the office of Space Oddity, a company specializing in analyzing K-pop fandoms.

The area was once home to a concentration of law firms, clustered around the Seoul Eastern District Court and the Seoul Eastern District Prosecutors’ Office. After the court and prosecutors’ office relocated in 2017, K-pop planners and industry professionals began filling the streets once frequented by legal professionals.

Brave Entertainment, the agency behind Brave Girls and their hit song “Rollin’,” has also left Yeoksam-dong in Gangnam District and moved its headquarters to Gwangjin District, like RBW.

An official at another K-pop agency that set up an office near Guui Station instead of Gangnam said, “The location is more convenient for transportation than you might expect, thanks to the Gangbyeon Expressway.”

What the addresses of five major entertainment agencies have in common

The era of Gangnam as the center of the K-pop industry is drawing to a close. For years, the affluent southern Seoul district was synonymous with the center of the Korean pop music business — but no longer.

The shift has been led by the major agencies that helped establish Gangnam as the industry’s center.

SM Entertainment and JYP Entertainment, both of which had headquarters in Cheongdam-dong, one of Gangnam’s most famous neighborhoods, have left the district. SM moved to Seongsu-dong in Seongdong District, while JYP established its new home in Seongnae-dong, Gangdong District.

BigHit Music, which had an office in Nonhyeon-dong, Gangnam District, also relocated to Hangangno-dong in Yongsan District after growing into HYBE and turning BTS into a global sensation.

Galaxy Corporation, which has expanded its roster by signing a string of high-profile names including G-Dragon of BigBang, Taemin of SHINee and actor Song Kang-ho, opened a new office in Yeouido-dong, Yeongdeungpo District, this spring.

Including YG Entertainment, which has long been based in Hapjeong-dong, Mapo District, none of the five largest entertainment agencies currently have an office in Gangnam.

The exodus of major entertainment companies from Gangnam, which began with JYP’s relocation in 2018, has taken shape as a defining feature of the changing K-content industry landscape over the past five years.

“In the past, there was a perception that an agency had to be based in Gangnam to be taken seriously. But now, major K-pop agencies have become powerful entities in their own right, and each is seeking to establish a cultural hub in a new location to demonstrate its independence,” said Kim Sang-hwa, a pop music critic.

Not every agency is moving away from Gangnam, however.

The Muze Entertainment, the agency behind girl group RESCENE, is taking the opposite approach.

In July, the company moved from a small building in Nonhyeon-dong, Gangnam District, to a six-story building in Sinsa-dong, also in Gangnam, expanding its headquarters without leaving the district.

Agencies become production infrastructure

One key reason major agencies are leaving Gangnam is a change in how music is produced and artists are managed.

In the past, it made sense for agencies to be based in Gangnam, where hair and makeup salons, recording studios and fashion brands were concentrated. The situation has now changed dramatically.

As K-pop has grown into a global cultural industry, major agencies have begun bringing the facilities needed for production and artist management inside their own headquarters. Their reliance on external production infrastructure has consequently declined.

A K-pop industry employee who previously worked at JYP described the change in working conditions following the company’s relocation from Cheongdam-dong to Seongnae-dong: “When JYP announced it was moving its headquarters from Cheongdam-dong to Seongnae-dong, employees were unhappy. Managers were concerned about being farther from broadcasting stations clustered in Sangam-dong, while production staff did not want to be far from hair and makeup salons.

“We knew it would be difficult to find a building of the same size as our current headquarters in Gangnam, but people still wondered, ‘Why all the way to Seongnae-dong?’

“Once we moved, however, we began to see the advantages. The new headquarters has recording studios, practice rooms, mixing rooms and even hair and makeup facilities. In Cheongdam-dong, even shooting a simple video required artists to visit an outside salon to get ready. Now, we can take care of most things inside the building. I think production efficiency has actually improved.”

Even Netflix’s Seoul office is outside Gangnam

The trend of leaving Gangnam to establish bases suited to individual business needs is also evident among other content companies.

Netflix Korea, which wields considerable influence over Korean content production and investment, has its office in Jongno District, not Gangnam.

A2Z Entertainment, whose roster includes broadcaster Cho Sae-ho, has established its headquarters in Magok-dong, Gangseo District, an area densely populated with corporate research facilities.

“Our office is in Magok. At first, I was concerned because the area has little connection to the entertainment industry. But it turns out to be convenient because it’s close to Sangam, where broadcasting stations are concentrated. Getting around is also easier than when we were in Gangnam. Production companies are gradually moving into the neighborhood, too,” an official at an entertainment agency said.

The criteria major agencies use when choosing new headquarters have also changed. In the past, the key question was where a company was located. Now, it is what kind of environment it can create there.

Headquarters are evolving beyond ordinary office spaces into production facilities and places where artists can carry out their activities while protecting their privacy.

This article from the Hankook Ilbo, the sister publication of The Korea Times, is translated by a generative AI system and edited by The Korea Times.