The Intangible Value and Economic Impact of Music Groups: A Case Study on NewJeans

The global music industry has evolved into a significant economic and cultural force, with K-pop playing a leading role in digital innovation, brand monetization, and global fan engagement. This study examines the intangible value and economic impact of K-pop groups, using NewJeans as a case study to assess how artist branding, digital economies, and corporate strategy drive financial success within HYBE Corporation. By integrating financial analysis, stock market evaluations, and sentiment analysis, this research provides an empirical assessment of the relationship between entertainment brands and their market valuation.

The study employs a mixed-methods approach, incorporating financial statement analysis, stock market event studies, and social media sentiment evaluation. The financial analysis quantifies NewJeans’ contribution to HYBE’s revenue, profitability, and valuation, showing that the group accounted for 4.26 million album sales in 2023, alongside securing multimillion-dollar brand endorsements from Nike, Coca-Cola, and Levi’s. The stock event study examines HYBE’s share price fluctuations, revealing that investor confidence surged by 7.3% following NewJeans’ debut, whereas market uncertainty caused an 8.2% decline after contract dispute rumors surfaced in 2024. The sentiment analysis, utilizing Natural Language Processing (NLP), demonstrates a 38% increase in positive sentiment on Weverse and TikTok during key promotional periods, reinforcing the correlation between digital engagement and financial performance.

Findings reveal that K-pop’s economic influence extends beyond direct revenues, affecting stock market valuation, digital economies, and investment strategies in entertainment finance. The integration of fandom economies, particularly in the form of subscription-based fan platforms, social media engagement, and merchandising, serves as a critical driver of financial sustainability. The study concludes that entertainment companies must adopt risk mitigation strategies for artist management disputes, leverage AI-driven forecasting models for valuation, and consider new regulatory policies in the digital music economy to maintain financial stability in an increasingly competitive industry.