K-pop Stars Turn to NFTs and Fan Incentives to Combat Ticket Scalping

South Korean music artists are tackling the persistent problem of ticket scalping by employing innovative strategies to ensure their fans can purchase concert tickets at fair prices. Ticket scalping has been a significant issue in the industry, resulting in exorbitant resale prices and disadvantaging genuine fans.

Innovative Solutions to Scalping

Singer Jang Beom-jun has taken a notable step by declaring that his upcoming concert tickets will be sold as non-fungible tokens (NFTs) using blockchain technology. This ensures that the tickets are linked to the original buyer and cannot be resold, preventing scalpers from profiteering. His decision came after he had to cancel all reservations for a sold-out concert this month due to scalping issues.

Fan-Based Countermeasures

K-pop superstar IU, under EDAM Entertainment, introduced a fan reward system as a deterrent against illegal ticket sales. Anyone caught reselling tickets would face a lifetime ban from her fan club. Conversely, fans who report such misconduct are rewarded with the ticket. Similarly, singer Sung Si-kyung took the approach of selling many tickets directly at the event venue, limiting purchases to one ticket per person, and publicly discouraged illegal purchases on social media.

Consequences for Scalpers

Artists like Lim Young-woong have implemented strict policies against scalping. He recently cancelled 118 reservations for suspected scalping activities. Tickets for his performance, originally priced up to 160,000 won (around $120), were being resold for as much as 5 million won. This crackdown is a response to industry statistics revealing that a significant portion of the youth has engaged with scalpers, and nearly half of sold-out event tickets are suspected to be in scalpers' hands.

Legal Challenges and Reforms

The South Korean government has taken legislative steps to fight scalping by revising the Public Performance Act, making it illegal to purchase tickets using automated software, known as macros. However, further comprehensive law revisions are necessary to effectively tackle the predominantly online nature of illegal ticket sales, which remains a legal grey area since the current law is outdated.

scalping, blockchain, NFT