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[JoyNOW] The HYBE Controversy Brings 'Album Bulk Buying' to the Surface... The Real Issue is 'Song Virality' m.joynews24.com/v/1722648 JoyNews24 Reporter Jung Ji-won HYBE and Min Hee-jin, CEO of ADOR, recently engaged in a heated dispute over the issue of ‘album bulk buying.’ Min Hee-jin claimed that HYBE had suggested she push 100,000 units of NewJeans' album last month, which she refused, framing it as an internal whistleblowing. HYBE, however, countered, saying, “We do not engage in album bulk buying. CEO Min Hee-jin repeatedly raised baseless suspicions about the sales of other artists’ albums.” Both sides continue to argue over the controversy. However, if we shift focus a little, the digital music market is even more suspicious than the album market. There exists an eerie form of viral marketing where, through methods akin to 'chart manipulation,' songs are streamed even when listeners don't want to hear them or haven't chosen to stream them. There are rumors that spending 10 billion KRW (~100 million USD) can get a song to #1, and money can make YouTubers create 'false popularity' without indicating it's an advertisement. The question arises: Who is truly at fault here? ◇ "I don't want to listen to this song, but it keeps streaming" ... The Power of 10 Billion Won Virality A 30-year-old business owner, Mr. A, recently experienced a strange phenomenon. The hip-hop and R&B playlist playing in his shop kept playing a debut song from a new girl group, which didn’t match the store’s vibe. Despite skipping the song several times, it continued to pop up 7-8 times, leaving Mr. A frustrated. He even commented, "I don't want to listen to that girl group's songs anymore," yet found himself having streamed it more than 7-8 times unwillingly. Similarly, Ms. B, a 30-year-old office worker, encountered the same issue. While playing her favorite work playlist on YouTube with colleagues, a random debut song from a new boy group appeared. The song, which didn’t fit the work vibe, continued to play on other work-themed playlists. Now, her colleagues even hum the tune, but everyone wonders, "Why do I know this song?" and "Who sings this?" It’s a case of forced streaming that excludes listeners' choice or intent. Mr. A and Ms. B’s confusion stems from aggressive social media viral marketing. The method works as follows: To boost global popularity, songs are inserted into random playlists on platforms like YouTube, Spotify, Apple Music, and Melon. No one directly adds the song, but due to viral marketing, the song ends up in playlists, creating a situation where "nobody intentionally streamed it, but it’s streamed a lot." Even those who dislike the song end up streaming it. Ironically, the rankings rise even when listeners don’t know or like the artist. The more money spent, the more frequent the song’s insertion into playlists. A source working in viral marketing recently told JoyNews24, “There’s a viral marketing strategy that boosts rankings solely through playlist placement, even when the artist has little to no popularity or recognition. I’ve heard it costs around 10 billion KRW (~100 million USD), and sometimes even more.” ◇ When Rankings Are All That Matter… Ticket Prices, Chart Manipulation, and Damaging International Perception The problem is that this practice happens not only in Korea but also overseas. While social media viral marketing is not illegal, when it manipulates global charts like Spotify or Apple Music, it becomes problematic. If a fandom-based artist with verified international popularity tops charts, it’s understandable, but how can a brand-new K-pop group suddenly appear at the top of foreign charts? The speculation is that large sums of money are being spent to manufacture ‘false popularity.’ All of this reflects the K-pop industry’s obsession with rankings. While viral marketing can instantly build a new group’s fandom and potentially lead to large-scale concerts and profits, most groups propelled by viral marketing don’t see concert attendance match their alleged success. Companies, having inflated performance stats, can't book small venues. Even when they can't sell out larger venues, they raise ticket prices, essentially exploiting their fans. While inflation and rising set design costs contribute to ticket price increases, this hidden issue plays a role too. If K-pop gains 'false popularity' through viral marketing, international perceptions of K-pop will deteriorate. Remember the sudden chart-toppers during the domestic chart manipulation controversy 7-8 years ago? How did the public perceive those artists? If unproven K-pop rookies start charting well out of nowhere, how will international listeners view the artists and the K-pop industry? This obsession with rankings is eroding the foundation of K-pop. As an industry reliant on people, once trust is broken, both companies and the entire industry will suffer. A music industry insider told JoyNews24, “Spending hundreds of billions of won to fabricate rankings—this so-called 'viral marketing' is essentially chart manipulation. Forcing people who don’t want to listen to specific songs to stream them unknowingly—how is that not manipulation?” Is this method truly acceptable? The industry unanimously agrees that some regulation is needed to control viral marketing that distorts charts by leveraging massive capital. ◇ Fair Trade Commission: "It's hard to regulate viral marketing, but there’s potential for consumer deception and competition law violations" The Fair Trade Commission (FTC) has not yet fully grasped the negative impact this excessive viral marketing brings to the K-pop industry. However, the FTC stated that if such practices continue, it could become a problem, and they plan to monitor the situation closely. An FTC representative told JoyNews24 on the 22nd, "Spending large sums on viral marketing is part of advertising, making regulation difficult. However, if this leads to consumer deception or resembles chart manipulation, it could be problematic and will require further observation." Another representative cautiously mentioned the possibility of this violating competition law. ◇ Influencers Promoting Songs Without 'Ad Disclosure'—A Violation of Advertising Laws During their investigation, JoyNews24 also found another dubious viral marketing method: YouTubers and influencers promoting songs or music videos without indicating they were advertisements. If a viral marketing company collaborates with an influencer agency to promote songs in exchange for payment without marking them as advertisements, this is legally problematic. It would essentially be a form of hidden advertising or backdoor deals between influencers and companies. If a YouTuber who rarely recommends music suddenly promotes a specific music video, or if they unexpectedly recommend a song on Instagram, there’s reason to be suspicious. If they received money for such promotions without disclosure, it becomes an issue. An FTC representative confirmed that this could violate advertising laws. Another FTC representative told JoyNews24 on the 22nd, "The general principle of the Advertising and Recommendation Guidelines is that 'if there is an economic relationship, it must be disclosed.' Failure to do so can lead to deceptive advertising. If entertainment agencies and influencers collaborate with viral marketing companies without proper disclosure, it falls under advertising laws." The FTC emphasized, "Some argue that because music is intangible, there’s no need for ad labeling, but that's incorrect. Goods include both products and services. Anything that can be traded is considered a good, including music, so it falls under advertising standards."