K-Pop girl groups disbanding over financial pressures: A detailed analysis

Multiple K-pop girl groups have announced disbandments or indefinite hiatuses in 2025. On August 4, RBW stated that Purple Kiss will end group activities by November 2025. The group debuted in 2021 with songs such as 'Ponzona' and 'Zombie', and released music consistently, including the single 'I Miss My.

..' in July 2025. Planned activities include an English-language album in late August, promotions in Japan, a North American tour, and a final concert in Korea. Earlier in the year, Weeekly disbanded in February after IST Entertainment confirmed the termination of contracts following discussions with members. Debuting in 2020 with 'Tag Me', the group achieved recognition with tracks like 'After School' and completed a nine-city North American tour in 2024. Everglow entered an indefinite hiatus after their contract with Yuehua Entertainment ended in June 2025. The group, which debuted in 2019, is known for songs including 'Bon Bon Chocolat' and 'Adios'. No official disbandment has been announced, but activities have ceased. Other cases include IHOTEU, which disbanded in June 2025 after seven months, following a controversy involving the CEO of JDB Entertainment and a member.

Additionally, Nature disbanded in April 2024 amid rumors about a member's activities in Japan.

Factors Contributing to Industry Challenges

Industry sources attribute these developments to increasing production costs and reduced investments. One insider noted that scandals have led investors to withdraw, causing market contraction. Production expenses for music videos, styling, and promotions have risen, with agencies investing heavily to remain competitive. Data indicates content production costs increased by 18.6% year-over-year, according to JYP Entertainment reports. Album sales declined 17.7% in 2024 to 98.9 million units, as reported by the Korea Music Content Association's Circle Chart. A Reddit discussion highlights a 20% drop in album sales in 2024, viewed as a correction after peaks driven by groups like Blackpink and BTS. The market faces saturation, with agencies debuting multiple groups rapidly.

For instance, HYBE launched four girl groups in recent years, with more planned, intensifying competition. This environment affects mid-tier groups, as the fanbase's resources are spread thin across numerous acts.

Market Projections and Potential Recovery

Analysts predict the K-pop market may recover by late 2025, potentially aided by returns of major acts like BTS and Blackpink. The global events market is projected to grow at a 7.5% CAGR from 2025 to 2032, valued at USD 13.28 billion in 2024, according to Maximize Market Research. New groups continue to debut, but the industry may need strategic adjustments to manage costs and investments. Competition remains high, with agencies like SM, YG, and JYP planning new launches in 2025.

Implications for the K-Pop Sector

These events signal a need for agencies to adapt to financial realities, such as optimizing production and focusing on profitable activities. While some groups disband, others may pursue solo careers or reform under different structures. The sector's growth depends on balancing expansion with sustainable practices