Unveiling Ethical Issues in the K-Pop Industry (22.9.2025)

The K-pop industry (short for Korean popular music) produces massive stars with global fandom, while many of the fans are unaware of the power imbalances and ethical issues that affect the industry. While training to become a K-pop idol, these trainees are required to participate in extreme training, strict diets and are pushed towards plastic surgery, all while starting the training as minors (Venters & Rothenberg, 2022).  

The operation model of these K-pop management agencies showcases a clear power imbalance, with systematic exploitation of trainees and idols through what is called “slave contracts”, these extremely unfavorable contracts for the idols and trainees. There has been a push for standardized contract reforms in 2009, however the issue is still present (Kim, 2014).  

Cultural and Situational Influences  

Multiple factors have contributed to the formation of structured exploitation in the K- pop industry. Trainees usually sign contracts with entertainment companies when they  are underage, at which time they have a weak sense of rights and are unable to respond  promptly to unequal treaties; and the hierarchical culture of South Korea, rooted in the  Confucian concept of respecting the elderly (Confucius, 1938), has deepened the  inherent obedience of trainees to authoritative entertainment companies (Cawley, 2021). Situational factors, such as intense competition in the K-pop industry, have also driven  entertainment companies to cultivate an organizational culture focused on profit to gain a competitive edge. In addition, the emphasis on collective interests in East Asian  culture has subtly constrained idols, making them hesitant to speak for themselves. As a result, they have complied with the unethical practice of brokerage companies  sacrificing business ethics standards in order to ensure the company's profitability.  

Is K-pop the New Sweatshop?  

The huge economic benefits brought by K-pop's annual export volume of tens of billions of dollars have broken the moral bottom line of countless entertainment companies, who choose to sacrifice the physical and mental health of young idols in exchange for economic prosperity (Park, 2023). Young idols mass-produced through the "industrial production process" (Kong et al., 2022) enter the K-pop market in the most  ideal  state  and  begin  to  generate  income  until  their  "commodity  value"  is exhausted (Padget, 2017). Commoditized idols cannot receive enough ethical care because they are not treated as healthy people from the beginning, and the long-term physical  and  mental  damage  they  suffer  under  high-pressure  environments  is immeasurable.  

People have argued about unethical practices for a very long time now, but the situation has not changed significantly. The idols are constantly exploited with “slave contracts.’’ But is there no hope for change?  

The Future of the K-pop Industry  

The public and fans are outraged time and time again when their favorite K-Pop stars talk about the unfair treatment. A Korean News Portal, Korea JoongAng Daily (2024) also mentions that the global sales of K-pop albums have dropped to 19% in 2024 in comparison to the sales in 2023, which might have been the result of the negative news regarding the dispute between idols and agencies in the industry. Hence, it is high time for the agencies to act right and ethically.  

The agencies should rightfully establish fair contracts without abusing their power over new and young talents. The contract should be well structured, providing both parties with clear details of compensation, working hours, payment schedules and termination. Furthermore, the regulatory bodies should also introduce Protection Laws for the idols with penalties for the agencies to ensure that the ethical practices are followed. 

There have been similar instances even in the Finnish Artistic Industry, like the K-pop. The case of emotional harassment and unfair power dynamics in Susanna Leinonen’s company is one of the examples for it (Kattelus, 2023). Hence, even the Finnish Idol and Art Industry could act ethically, specifically with their fair management practices and prevent the idols for future extremes.  

Authors: Prastuti Bhattarai, Pihla Kinnunen, Iisakki Mustonen, Jesse-Joona Vuoti, Le Zhang

This blog post is based on a case study co-created by the authors as part of a Business Ethics course in the Sustainable Marketing Master’s program at Oulu Business School, University of Oulu, Finland.