With all the hype surrounding the K-pop industry, how much does it actually earn? The Korea Culture and Tourism Institute sought to answer this question with data, which revealed that the K-pop industry raked in nearly $900 million from overseas last year.

In 2023, the estimated overseas sales of K-pop amounted to 1.24 trillion won ($893 million), exceeding 1 trillion won for the first time, according to the government-run organization's report on Wednesday. Compared to the previous year, K-pop's overseas sales increased by 34.3 percent, or 315.9 billion won.

The breakdown shows that exports of physical albums reached 388.9 billion won, accounting for 31.4 percent of the total. The estimated overseas streaming service revenue was 260.3 billion won, making up 21 percent, while estimated overseas performance revenue reached 588.5 billion won, constituting 47.5 percent.

According to the analysis of the average annual growth rate from 2018 to 2023, the export value of physical albums grew by 35.2 percent annually, and the estimated revenue from overseas streaming services increased by 22.3 percent annually. When limited to the six major entertainment companies with available data, including SM, JYP, YG and Hybe, the estimated revenue from overseas performances also grew by 35 percent annually.

As normalcy was restored in 2023 following the COVID-19 pandemic, performance revenue increased by 65.6 percent compared to the previous year.

The KCTI stated in the research paper that the estimated data was derived from multiple sources including its "Culture, Sports, and Tourism Export and Import Trends Report"; "Foreign Income Royalties," by the Korea Music Copyright Association; and overseas performance sales data recorded in business reports, audit reports and IR materials from entertainment agencies.

The organization also noted that K-pop's overseas sales are expected to grow further in 2024, continuing the trend from 2023. This projection took into consideration the overseas debuts of established artists and the global music market trend.

The institute explained that the global music market has been growing for nine consecutive years as of 2023, which is promising for K-pop's international expansion. Citing data from the International Federation of the Phonographic Industry, the institute noted that the global music industry revenue reached $28.6 billion in 2023, a 10.2 percent increase from the previous year.

Meanwhile, KCTI also pointed out that issues such as self-replication, content homogenization and sales-focused marketing strategies -- such as photocards and offering chances to enter autograph sessions -- that lead to immediate disposal of purchased albums are becoming concerns for the K-pop industry.