Ava Labs, the developer of the Avalanche blockchain, is working to introduce web3 technologies to improve intellectual property management in the booming K-pop industry.

Justin Kim, head of Ava Labs’ South Korean operations, discussed their strategy to implement blockchain solutions in the entertainment sector in a June 25 interview with DL News.

The K-pop industry, known for its massive and loyal fanbase, is expected to generate significant revenue from events and merchandise, projected to reach $20 billion by 2031. Ava Labs plans to leverage this potential by integrating non-fungible tokens (NFTs) and other web3 applications to boost fan engagement and ensure fair compensation for artists.

Intellectual property management

Kim noted that the K-pop industry struggles with financial transparency, with artists often not receiving their fair share of revenue from merchandise and content sales. Blockchain technology, particularly NFTs, can solve this by providing accurate sales records and transparent transactions. Ava Labs has been partnering with South Korea’s major conglomerates, known as "chaebols," to promote the adoption of web3 technologies.

One notable partnership is with SK Group, South Korea’s third-largest conglomerate, which began working with Ava Labs last year to implement NFT-based ticketing systems for K-pop concerts, utilizing SK Group’s extensive technological infrastructure.

Kim emphasized that collaborating with large, established companies is key to retail adoption, as these companies already have substantial user bases, which smaller web3 startups often lack. He added that using NFTs for K-pop merchandise will provide artists with a clear and transparent record of sales, ensuring appropriate compensation and addressing a long-standing issue in the industry.

Expanding web3 tech

Ava Labs has also invested in Titan Content, a creative studio that combines K-pop with NFTs and other web3 innovations. Titan Content is led by Han Se-min, former head of SM Entertainment, South Korea’s largest K-pop agency, known for managing groups like EXO and NCT.

Additionally, Ava Labs is exploring opportunities in South Korea’s vibrant online gaming market. In March, the company announced plans to integrate NFTs as in-game assets in Nexon’s popular game MapleStory, facilitating easier trading among players.

As Ava Labs expands its presence across Asia, with offices in Japan, Vietnam, and India, its innovative approach to integrating blockchain technology into mainstream industries demonstrates its commitment to driving digital transformation.