InterviewModhaus co-founder revolutionizes K-pop fan experience with blockchain

Baek Kwang-hyun, vice president and co-founder of Modhaus / Courtesy of Modhaus

K-pop is all about fandoms. Fans drive album and merchandise sales, organize mass voting campaigns and pour unwavering support into their favorite idols.

Yet, despite their central role, fans have long been excluded from decision-making. Entertainment agencies have traditionally held the power, producing idol groups and controlling their direction. Fans, until now, have merely consumed the results.

In 2021, Modhaus challenged that formula. Leveraging blockchain technology, it launched a new K-pop model that allows fans to become active decision-makers in shaping a group’s activities.

“Mod in Modhaus stands for modular entertainment. While most entertainment companies deliver a finalized product, our approach gives fans the experience of assembling LEGO-like pieces to create various outcomes,” said Baek Kwang-hyun, vice president and co-founder.

The idea of “participatory idol groups” originated with Modhaus CEO and co-founder Jeong Byeong-gi — a veteran producer known for his work with Wonder Girls, 2PM, Lovelyz, INFINITE and Heize. Baek, who joined Jeong before the company’s launch, helped design the business model based on his consulting background and now oversees its business division.

Now, Modhaus manages the rising girl groups tripleS and ARTMS, and has recently introduced a boy group, idntt.

The company’s transformation is also gaining traction among fans. Its first fan vote took place in September 2022, when 10,800 votes decided how eight tripleS members would be split into two units. By mid-2023, a vote for a Japan-based unit drew 990,000 votes.

"That growth in engagement speaks volumes," Baek said. The first unit album, released in 2022, sold 18,500 copies in its first week, while a recent unit album in 2023 sold 375,500 copies.

A promotional image of Modhaus app COSMO / Courtesy of Modhaus

How do two seemingly mismatched elements — blockchain and K-pop — converge into a real-world platform?

Through COSMO, Modhaus’ dedicated app, fans purchase goods in the form of non-fungible tokens (NFTs), such as digital photo cards. With each purchase, they receive COMO tokens — granting them voting rights on key decisions like album titles, unit formations and even singles.

Blockchain ensures votes are tamper-proof. Once voting ends, the rights expire, incentivizing further participation through new purchases. NFT items can also be traded between fans.

“From Day 1, we focused on user experience,” Baek said. “To avoid alienating fans with technical jargon, we replaced terms like ‘NFT’ with words rooted in Modhaus’ own universe. The app allows for simple email logins, and we cover gas fees to ensure accessibility.”

To date, Modhaus has issued over 5 million NFTs, with more than 200,000 active users. While 20 percent of its revenue comes from Korea, the largest share — 33 percent — is generated in North America.

Baek noted that blockchain integration also enhances transparency in revenue sharing. Thanks to smart contracts, revenue from items like digital photo cards is distributed directly to artists at the end of each promotional period.

"We believe this approach not only fosters trust between the company and the artists, but also serves as a way for the company to express gratitude for the members' efforts as performing artists," Baek said.

Still, Baek acknowledged that innovation doesn’t guarantee exclusivity. As interest in the platform grows, he has noticed similar services beginning to emerge, both domestically and internationally.

"This idea was developed through Jeong's 25 years of experience. Fans are well aware that it was pioneered by Modhaus, and we continue to break new ground with great effort. I believe it deserves respect," Baek said.

Looking ahead, Modhaus plans to expand its intellectual property (IP) portfolio and keep innovating the K-pop industry.

“K-pop is shifting from a traditional IP business to a fandom-powered industry,” Baek said. “On COSMO, fans are no longer passive consumers. They’re creative participants. As we bring more IPs to the platform, we expect this participatory model to grow and evolve.”