The Digital Transformation and Virtual Celebrity Industries in East Asia

The rapid emergence of AI-powered idols is reshaping the landscape of the K-pop industry, introducing new paradigms in performance, fandom, and cultural production. This study offers a comprehensive analysis of how AI-generated virtual idols—such as MAVE:, Aespa, Eternity, and A-SOUL—are redefining the boundaries between human and machine in Korea’s entertainment sector. Drawing on interdisciplinary frameworks from digital economics, labor studies, and cultural theory, the research examines the economic sustainability, business models, and fan engagement strategies underpinning AI idol projects. Through comparative case studies of leading virtual idol groups in Korea, China, and Japan, the study highlights the distinctive cost structures, revenue models, and regulatory environments that shape the development and success of AI idols across East Asia. The analysis reveals that while AI idols offer scalable content creation, risk reduction, and innovative fan experiences, they also raise critical concerns regarding authenticity, digital labor rights, and cultural homogenization. Empirical findings indicate that fan acceptance hinges on perceived authenticity and emotional resonance, with hybrid models—integrating human and AI performers—emerging as a dominant trend. The study concludes that the future of K-pop will likely be defined by the coexistence and hybridization of AI and human idols, necessitating new ethical frameworks, regulatory approaches, and participatory design models to ensure equitable value creation and cultural inclusivity in the evolving digital entertainment economy.