Virtual idols, now surging in popularity, poised to transform the K-pop industry landscape

Priz-V, Netmarble’s five-member virtual idol group, held a fan concert at Yonsei University’s Grand Auditorium in May. [NETMARBLE]

 
Once dismissed as a fringe subculture, virtual idols are now filling stadiums, topping music charts and edging closer to the mainstream K-pop spotlight — backed by billions of dollars and powerful tech.
 
According to Global Information, a market research firm, the combined market for virtual idols and virtual YouTubers is projected to grow from $1.08 billion in 2023 to $4.04 billion by 2029.
 

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Virtual boy band Plave held a concert at KSPO Dome in Songpa District, southern Seoul, in August. [SCREEN CAPTURE]

 
What was once a novelty — virtual idols appearing on music shows — has become commonplace. Plave, the virtual boy band that pioneered the concept in the domestic market, held a solo concert at the KSPO Dome in southern Seoul last month. In November, it will kick off an Asia tour with a concert at the Gocheok Sky Dome in western Seoul.  
 
Virtual girl group Isegye Idol also performed at the venue in May.
 
While virtual YouTubers — or VTubers — originally gained popularity through livestreaming platforms, they now dominate the social media sphere. According to YouTube’s Culture & Trends Report, VTuber content generates an average of 50 billion views annually, and 16 of the top 20 global creators in terms of Super Chat donations are VTubers.
 
With the market surging, tech companies — especially game developers with advanced graphics and motion capture capabilities — are entering the field. Many small-scale virtual idol studios are led by game industry veterans.  
 
Among major players, Netmarble has been the most aggressive, launching its five-member virtual girl group Priz-V in February and holding a fan concert at Yonsei University’s Grand Auditorium in May.
 
Traditional K-pop talent agencies have also joined the race. Supertone, an audio tech startup acquired by HYBE, introduced virtual girl group Syndi8 last year. SM Entertainment unveiled the AI-based idol naevis during a concert in January. Cube Entertainment also recently announced plans to launch a virtual idol group through a joint venture in China.
 

Virtual idol group Syndi8 [SUPERTONE]

 
Despite their digital nature, industry insiders say a sense of "humanity" is key to a virtual idol’s success. While some AI-based idols have no human performer behind them, most mainstream virtual idols still have a “real person” controlling them — known colloquially as their “base.”  
 
Fans often enjoy these real-time interactions, including the glitches and motion tracking errors that come with them. These quirks help build a shared narrative unique to each fandom. Still, the identities of the human performers are generally kept secret. Fans even refer to discovering their identities as taking the "red pill" — a nod to "The Matrix" (1999) — and often prefer not to know.
 
"The appeal of virtual idols lies in removing risks tied to an individual’s morality or private life," said a representative from a local VTuber agency. "Keeping the real person’s identity hidden is standard practice."
 
While virtual idols and VTubers share similar technologies — such as motion capture and facial tracking — their strategies differ. VTubers often cater to male audiences with one-on-one livestreaming content, while virtual idol groups appeal better to females, with focus on group dynamics, choreography and stage performance.
 
"VTubers are generally male-oriented, while virtual idols skew more toward female-oriented fandoms," said Kim Hyeong-min, CEO of startup 23-Segi Aidle, which produces virtual idols.  
 

Virtual girl group Isegye Idol [PARABLE ENTERTAINMENT]

Virtual idol group Priz-V [NETMARBLE]

 
A Netmarble spokesperson added, "We formed a group to offer an experience distinct from solo VTubers — showcasing group chemistry and performance on stage."
 
The technological wow factor is another major draw. Fans of Plave, for instance, say the visual experience alone keeps them coming back.  
 
One 26-year-old fan, surnamed Lee, who attended two of the group's concerts, said, "You start looking forward to what kind of technology will surprise you this time." 
 
In a recent livestream, the group's avatars were shown playing dodgeball and foot volleyball in the ocean, with water-slicked hair naturally flicking back into place — all rendered in real time.
 
Designing a virtual idol starts with 3-D modeling of the character’s appearance, including facial features, body type and outfits. The key step is rigging, which involves building the skeletal structure that allows the avatar to move.  
 
Motion capture suits embedded with sensors allow real-time tracking of facial expressions and body movements, which are then mapped onto the avatar. Rendering engines like Unreal or Unity are used to refine the visuals, simulating details like skin texture, hair movement and clothing folds.
 

A member of Plave shakes their head to flick off water, with the hair volume realistically responding to the motion in a recent livestream. [SCREEN CAPTURE]

 
Virtual idol revenue comes largely from advertising and intellectual property collaborations. Game companies in particular are targeting subculture fans, who tend to overlap with their player base. Firms like NHN and Smilegate have launched games featuring members of Japan’s top virtual group Hololive.
 
Concerts and album sales are emerging as lucrative revenue streams as well. Plave, Isegye Idol and Hololive have all expanded overseas, hosting global tours and fan events. Plave’s latest EP, "Caligo Pt. 1," released in February and sold over 1 million copies.
 

Virtual idol naevis [SM ENTERTAINMENT]

 
Though the upfront production costs are high, virtual idols tend to yield higher profit margins than traditional artists due to lower overhead and staging expenses. Last year, Plave’s agency Vlast posted 45.4 billion won ($32.5 million) in revenue and 9.9 billion won in operating profit — a 22 percent margin.  
 
By comparison, Cube Entertainment recorded an 8 percent margin during the same period, with revenue of 210 billion won and operating profit of 16.6 billion won.
 
Virtual idols may not yet match the scale of Korea’s top game and tech firms, but in the entertainment sector, they're already proving to be a high-return bet.


This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM MIN-JEONG [shin.minhee@joongang.co.kr]