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1990s: Development of modern K-pop

In the 1990s, Korean pop musicians incorporated partially Europop and mostly American popular music styles such as hip hop, rock, jazz, and electronic dance in their music. In 1992, the emergence of Seo Taiji and Boys marked a revolutionary moment in the history of K-pop. The trio debuted on MBC 's talent show on April 11, 1992, with their song " I Know " and got the lowest rating from the jury; however, the song and their self-titled debut album became so successful that it paved the way for other songs of the same format. The song's success was attributed to its new jack swing -inspired beats and memorable chorus, as well as innovative lyrics which dealt with the problems of Korean society. A wave of successful hip hop and R&B artists followed in their footsteps, including Yoo Seung-jun, Jinusean, Solid, Deux, 1TYM and Drunken Tiger.

In 1995, South Korean record producer Lee Soo-man, who was educated in the U.S. and was exposed to the trends in American music, founded the entertainment company SM Entertainment. Former Seo Taiji & Boys' member Yang Hyun-suk formed YG Entertainment in 1996, and Park Jin-young established JYP Entertainment in 1997.

The huge popularity of Seo Taiji & Boys among teenagers shifted the focus of the Korean music industry to teen-centred pop music. Idol bands of young boys or girls were formed to cater to a growing teenage audience. H.O.T. was one of the first idol boybands, debuting in 1996 after rigorous training encompassing not only singing and dancing skills but also etiquette, attitude, language and the ability to deal with the media. Their song " Candy " presented a softer and gentler form of pop music with upbeat and cheerful melodies accompanied by energetic dance steps – a formula adopted by many subsequent idol groups. The group was hugely successful, with many fans copying the group members' hairstyles and fashion. Merchandise affiliated with the group ranging from candy to perfume were sold as well. Their success was followed by that of young male and female idol groups like Sechs Kies, S.E.S., Fin.K.L, NRG, Baby Vox, Diva, Shinhwa and g.o.d, which also became popular among the younger generation.

During the late 1990s, talent agencies began to market K-pop stars by implementing an idol business model used in J-pop, where talents are selected and trained to appeal to a global audience through formal lessons or through residency programs. The extensive and intensive process includes physical and language training (a program sometimes called abusive), and potential talents are also selected for height, being much taller on average than their Japanese counterparts. Sociology professor Ingyu Oh has explained regarding looks, "K-pop emphasizes thin, tall, and feminine looks withadolescent or sometimes very cute facial expressions, regardless of whether they're male or female singers." Over time, Korean-American artists have become successful due to their fluency. These efforts increase the marketability of K-pop while also increasing South Korean soft power, which has become an important part of official policy.

The 1990s saw a reactionary movement against mainstream popular culture with the rise of illegal underground music clubs and punk rock bands such as Crying Nut. The 1997 Asian financial crisis not only prompted South Korean entertainers to look for new markets, with H.O.T. releasing a Mandarin-language album and Diva releasing an English-language album in Taiwan, but also prompted South Korea's leaders to focus on building the nation's cultural influence through music. The government poured millions into building infrastructure, technology, and a specific department within its Ministry of Culture for K-pop. Regulations were passed on karaoke bars, for example, to protect the interests of idols.