What is happening, in a nutshell, is this:

Korea's record labels are getting big enough to diversify.

Something that you have to understand is that on a global level, Korea's Big 4 are small indie labels: for instance, JYPE's market cap is about 1/15th of that of Warner Music.

That said, they are relatively profitable, what with a lot being done in house, and the audition/trainee system saving money on scouting and A&R.

Plus, the concept of "core business" is far less of a deal in Korea than elsewhere.

The thing is that the biggest players in Korea aren't even the JYPEs and the bighits; it's internet companies like Kakao and Naver, and CJ, which started as Samsung's sugar refinery, no joke.

The "Big 3/4" were small fry compared to them. But that is slowly changing.

With money pouring in these days due to kpop's global growth, and having moved into their shiny new buildings, the YGEs and SMEs are looking to invest their money. Some innovate - Beyond Live might end up a game-changer - and others consolidate, buying up other companies.

The thing is that business decisions of entertainment companies affect the general public on an emotional level more than, say, two dairy companies merging: When Disney bought Fox, everybody was like "OMG AVENGERS x X-MEN", whereas only businesspeople care about the dairy stuff.

So when things like the YG/Naver/bighit deal happen, you have people chiming in who don't care about business, and know even less about it.

I'm absolutely no expert, mind you: but that is my point. A lot of amateurs are talking right now, including yours truly.

But, in my amateurish opinion, what will happen is that:

you will see a LOT of collaboration. The big 4's head honchos all know each other well, and working together reduces overhead and increases profit. Car companies share engines, and (almost) nobody cries about that.

See, not using a certain internet platform because it's owned by a company which has a boygroup whose fans were mean to your oppars once is not something grown ass adults lend much weight to.

Also, mobile games. They are one of the actual cornerstones of the Korean economy at this point, there are plenty of crossovers already, and the entertainment companies want a piece of that massive pie - but you need to invest money to get a quality product.

And - who knows what will happen? Might SME and JYPE merge? Could bighit outright buy YGE?

Yeah, those things could happen, to be honest.

What I am saying is: don't look at business decisions as a fan, because the people making the decisions don't.

And remember that the companies are very young - none of them are 30 years old. At some point in every industry after the initial gold rush, mergers and consolidations happen, until only a handful of companies remain. The UK used to have FIVE HUNDRED car manufacturers.

Hell, the global "Big 3" record labels used to be the "Big 5" not so long ago, until Universal swallowed BMG and EMI. And those 3 companies hold a whopping 70% share of the global music market.

Trust me, something along those lines WILL happen in Korea, as well: it has to, tbh.

This is also why this bellyaching about bighit buying other labels is so incredibly dumb:

Because these are the labels owned by Universal.

Literally HUNDREDS of them.

https://en.wikipedia.org/wiki/List_of_Universal_Music_Group_labels

And frankly, the Korean music industry is a damn mess right now. Consolidation is not just an option, it is a NECESSITY.

Look at IZ*One. Look at IU. Look at Monsta X. Look at the polish you get when you are part of an actual serious corporation run by serious professionals.