K-pop music labels have lost $1.7 billion since last year, according to the International Federation of the Phonographic Industry (IFPI).
The IFPI, which represents major record labels worldwide, said the losses have been due to record sales in Korea and the rest of Asia, as well as to foreign exchange fluctuations and increased costs associated with overseas production.
According to the IFPII, the record companies have lost an estimated $1,065 million to foreign currency fluctuations and to increased costs due to overseas production costs.
The loss to the record industry has increased as foreign currency exchange rates have fallen to levels that would be unthinkable just a few years ago.
The IFPPI said the record label industry has already lost $300 million since 2013.
“K-pop artists are the stars of the entertainment industry,” said a spokesperson for K-Music, a major K-music label in Korea.
“And we are proud of that.”
The spokesperson added that the company was not planning to seek any compensation from record labels, citing the company’s “financial health and the current situation.”
The spokesperson added the company is “very concerned” about the situation.
The spokesperson for music agency, A&R, said that they will also seek compensation from K-M, the parent company of K-D, after a loss of $5.4 million due to foreign-currency fluctuations.
K-M said the company has “no plans to file any damages to K-Band in light of these losses,” according to a statement.
The K-Rock label has lost $5 million due more to currency fluctuations.
The spokesperson from the company also said the label has no plans to seek compensation.