In K-pop's early years, SM, YG, and JYP formed the industry's "Big 3" – the dominant forces shaping the idol system. Acts like BoA, TVXQ, Super Junior, BIGBANG, 2NE1, Wonder Girls, and 2PM accounted for the majority of physical album sales industry-wide, while mid-tier companies like Cube, FNC, and MBK Entertainment carved out space alongside them. HYBE's rise in the 2010s eventually expanded that top tier to four, but the same pattern that let smaller labels thrive decades ago is playing out again – newer mid-tier companies like KQ, Starship, and WakeOne are becoming genuine competitors to the Big 4. Here's how these once-small labels built the strategies that got them there.

Before KQ Entertainment became what it is now, the label was formerly known as Seven Seasons, created as an executive label for popular K-pop boy group Block B in 2013 after they had left their previous company, Stardom Entertainment. With Block B operating as Seven Seasons’ only act, the company thrived through the group’s album releases from 2013 up until 2016 – all of which were commercial successes. However, in June 2016, the label announced a rebrand, changing its name to KQ Entertainment and folding in Seven Seasons as a subsidiary label.

According to the company’s statement, the decision was made to “systematically release and manage music; experts in planning, promotion, production, and A/R have come together to carry out their respective duties. We changed our company name and separated labels with different characteristics to establish a more systematic system and discover diverse artists." Moreover, in an interview with The Chosun Daily in 2024, CEO Kim Kyu-wook elaborated on how the rapid growth of technology had changed his perspective on content-planning proposals. “I was shocked by the early iPhone in 2008,” he said. “Seeing that small device equipped with social media platforms like YouTube and Facebook made me realize there would be a growing need for music content that could be enjoyed through these platforms.”

In response, Kim realized it was imperative that KQ’s new approach to artist development had to emphasize interactive content, as he understood how crucial social media would become for K-pop’s third and fourth generations. “In the past, idols could release good music, and fans would naturally buy it,” he stated. “But now, with the development of social media, it’s essential to create an environment where fans are constantly engaged and driven to purchase content.”

However, the company had about 20 employees at the time and was in desperate need of a miracle group to take KQ to the next level. So Kim got to work and began strategizing.

By mid-2018, KQ officially revealed its first set of trainees and upcoming boy group – eight members who would be known as KQ Fellaz. The concept is similar to SM Entertainment’s SM Rookies, when several trainees are announced to the public, allowing fans to get to know them and keep up with their pre-debut activities online through performance videos, covers, and even vlog content. As a branding strategy, it’s one of the best ways to keep potential fans engaged, slowly form emotional attachments to the trainees, and build up hype for a group’s official debut.

For KQ Fellaz, however, all it took was one performance video to catch K-pop fans’ eyes and set social media ablaze. In May 2018, the group released “KQ Fellaz Performance Video I,” a choreography-driven performance to the song “Pick It Up” by Famous Dex. Donning matching black outfits and caps inside an underground parking lot, the members flex their hip-hop style capabilities – smooth, sharp, and undeniably charismatic. The video instantly went viral with English-speaking audiences, especially on X (formerly Twitter), with fans praising the group’s synchronicity and overall stage presence.

The hype continued to grow as the trainees set out on a pre-debut web series, KQ Fellaz American Training in LA, but the company’s CEO had already been playing the long game even before the group’s newfound virality. Instead of just debuting a standard boy group with typical K-pop songs, Kim knew if they had any chance to create a “distinct concept and worldview,” it would set their group apart from other fourth-gen rookies and inch them closer to global success. 

So in October 2018, KQ Fellaz officially debuted as ATEEZ and incorporated the theme of “eight pirates embarking on a journey of youth” into their music, with their first single, “Pirate King.” Incorporating unique lore and storylines into a K-pop group’s concept wasn’t new by any means; however, it has proven very successful for getting fans involved and immersed in their world, especially for groups like BTS, who also started from a small company. “For rookie idols with low recognition, a ‘worldview’ is an effective way to convey a unique musical color,” the CEO explained with ATEEZ. “Why should idols only sing about love? We thought that pirates, who embark on various dynamic adventures, could effectively capture the spirit of youth.”

Since then, ATEEZ has consistently built on that foundation, pulling KQ from relative obscurity into one of K-pop's most closely watched mid-tier success stories. The company's staff has grown from around 20 employees to 80, now managing a second boy group, xikers, and signing female soloist Sohyang in 2025. None of this would have been possible without the strength of the visual, musical, and conceptual identity built around ATEEZ – the foundation the rest of KQ's growth has been built on.

Similarly, other mid-tier companies such as Starship and WakeOne have emerged as important contemporaries to the industry's Big 4. Throughout K-pop's second generation, Starship artists like K.Will, SISTAR, and Boyfriend built the label's early reputation, before the label's third-generation acts – MONSTA X and Cosmic Girls (WJSN) – pushed it further, establishing Starship among the industry's more prominent agencies.

MONSTA X, specifically, helped Starship move up in the ranks, debuting in 2015 around the same time a new influx of K-pop fans were flocking to the genre. From the sudden virality of their 2015 B-side, “Hero,” to the even more popular 2018 track, “Shoot Out,” the original seven-member lineup had garnered quite the following through a strong masculine image and intense choreography that mirrored that of veterans. 

By 2021, Starship expanded its reach, partnering with music industry executive Eshy Gazit and his new label venture, Intertwine, in partnership with BMG. The first two artists signed were MONSTA X and former group member Wonho, who was now promoting as a soloist. This venture secured both a global distribution deal and expansion for both acts, ensuring that their overseas promotions and visibility would increase and strengthen.

However, Starship’s most profitable and best-selling group has been IVE, a six-member girl group known for their viral songs and for achieving one of the most successful debuts in recent K-pop. With catchy pop hooks and a strong musical and visual foundation, IVE quickly became a powerhouse act, both domestically and globally. But it wasn’t just the music that resonated; their social media presence is a huge factor in what makes the girl group so appealing to fans. Since 2020, companies have been leaning heavily into TikTok trends and Gen Z sensibilities, and Starship is no exception. Through viral trends and content that appeals to the members’ relatability, IVE’s social media influence has garnered over 10.1 million followers on TikTok.

Lastly, there is WakeOne, home to popular groups such as ZEROBASEONE, Kep1er, izna, and Alpha Drive One. WakeOne’s strength is that all of its idol groups have participated in and were formed during reality competition shows – a trend that’s resulted in some of K-pop’s most popular groups, both temporary and permanent. Through these competition shows, audiences follow the trainees’ journeys as they train and compete to place in the final lineup of the shows’ projected groups and officially debut. Similar to trainee programs such as SM Rookies and KQ Fellaz, competition shows allow fans to invest in the trainees and vote for their favorites based on skill, charisma, and stage presence. By the time the official lineup has been solidified and set to debut, the audience has already grown an attachment to the individual members and the trials it took to get to the end.

For ZEROBASEONE, that program was Boys Planet; for Kep1er (co-managed by Swing Entertainment), it was Girls Planet 999; the members of Izna were selected through I-Land 2: N/a; and ALPHA DRIVE ONE was formed through Boys II Planet. While each group has received varying levels of success – ZEROBASEONE leading the charge in fifth-gen boy groups – WakeOne has leveraged the instant success of competition shows and is now considered one of the more prominent mid-tier companies behind the Big 4.

What KQ, Starship, and WakeOne have in common is a willingness to build a specific identity rather than chase a generic idol formula. HYBE proved a mid-tier label could restructure the industry's hierarchy entirely; these companies are proof that the path doesn't require replicating that scale, just the same strategic clarity. The Big 4 may still dominate by size, but they're not the only labels writing the playbook.