IU’s power continues to reign. As one of South Korea’s most beloved solo artists, IU not only captivated fans worldwide with her music and acting but also delivered record-breaking profits for her agency EDAM Entertainment, and by extension, its parent company Kakao Entertainment.
According to financial disclosures, EDAM Entertainment posted 74.9 billion KRW (approx. 51.1 million USD) in revenue and 6.1 billion KRW (approx. 4.2 million USD) in operating profit for 2023. This marks a massive leap from the previous year’s 46.2 billion KRW (approx. 31.5 million USD) in revenue and 4.3 billion KRW (approx. 3 million USD) in profit, and more than double the revenue from 2021.
The achievement is even more significant when compared to other small-to-mid-sized agencies under Kakao, most of which reported sluggish or declining performances. Industry insiders point to the “IU effect”, highlighting her immense brand value and multifaceted success, as the driving force behind EDAM’s explosive growth.
EDAM Entertainment, often dubbed a “one-artist agency”, has IU to thank for the lion’s share of its success. Kakao Entertainment holds 52.5% of the agency’s shares, while IU herself owns 22.5%, making her the third-largest shareholder.
In 2023, IU expanded her influence beyond music and into acting, with high-profile projects that further elevated her market value. She starred in Netflix’s 60 billion KRW original K-drama “When Life Gives You Tangerines,” which touched audiences with its heartfelt narrative around love, family, and personal growth.
The series soared to No.1 on Netflix’s Global Non-English TV Show rankings, receiving praise both domestically and abroad. In a rare move, even China’s Global Times, known for its anti-Hallyu stance, praised the series as a “new Korean hit” in period dramas.
IU is also believed to command one of the highest appearance fees among Korean actresses, adding further weight to her commercial influence.
The impact of IU and other Kakao-affiliated artists like IVE has translated into real numbers. While Kakao’s other content sectors, such as webtoons and media, saw declines, the music division recorded an 11% year-over-year growth, from 1.724 trillion KRW (approx. 1.2 billion USD) in 2022 to 1.92 trillion KRW (approx. 1.2 billion USD) in 2023. This surge outpaced Kakao’s overall revenue growth of 4%, making music the only content sector with positive momentum.
With IU at the forefront, EDAM Entertainment has become a shining example of artist-led success, proving just how powerful one artist’s influence can be, not just culturally, but financially.