ARIH Is More Than a BTS Sponsorship. It May Be a New Business Model for K-Pop.
When BTS took the stage for the ARIRANG World Tour, fans may have noticed a new sponsor appearing alongside the group’s activities: ARIH.
At first glance, ARIH looks like another celebrity-backed product launch. The food and beverage brand offers products ranging from probiotic sodas and energy drinks to instant noodles. BTS appears in the marketing. The products are being launched through Walmart in the United States. It would be easy to assume this is simply another endorsement deal.
But that assumption misses what may be the most interesting part of the story.
ARIH is not merely sponsoring BTS. BTS helped create it.
And unlike a typical brand collaboration, ARIH sits inside a business structure jointly owned by HY, Paldo, and HYBE through a U.S. joint venture called HYH America.
In other words, this is not simply a company paying BTS to appear in advertisements. It is an attempt to build a global consumer brand with BTS and HYBE participating in the business itself.
WHY HY NEEDED A NEW GROWTH STORY
To understand ARIH, you first have to understand HY.
Formerly known as Korea Yakult, HY built its business on fermented dairy products, probiotics, and health beverages. For decades, it was one of South Korea’s most recognizable food companies.
But in recent years, the company has faced increasing pressure.
While HY’s core food business remained profitable, a series of investments in logistics, medical technology, overseas ventures, and other subsidiaries weighed heavily on its consolidated earnings.
HY reported consolidated net losses of approximately â‚©50.9 billion in 2022 and â‚©28.6 billion in 2023. In 2024, the company recorded an operating loss of â‚©64.5 billion on a consolidated basis.
Much of the pressure came from newer ventures. Logistics subsidiary Vroong continued to generate losses, while medical robotics company Think Surgical and overseas operations also remained unprofitable.
The result was a frustrating dynamic: profits generated by HY’s traditional food business were increasingly offset by losses elsewhere in the portfolio.
The company needed a new growth engine.
ENTER SHIN SEUNG-HO
That search led to one executive.
In 2024, HY reorganized its business and launched a dedicated Global Business Division led by Shin Seung-ho, a longtime marketing executive who had spent more than 16 years helping build HY’s brands.
The initial strategy was straightforward.
Export existing products.
HY expanded sales of products such as Helicobacter Project Will into markets including China, Southeast Asia, and the United States. The company secured shelf space at retailers such as H Mart and began testing international demand.
But there was a problem.
Exporting Korean products can only take a company so far.
Consumers unfamiliar with a brand have little reason to choose it over established competitors. Shelf space is limited. Marketing costs are high. Building awareness from scratch is expensive.
HY realized that exporting products and building a global consumer brand are two very different challenges.
That realization led to a different idea.
Instead of exporting products alone, what if they exported culture?
THE BIRTH OF ARIH
In 2025, HY partnered with HYBE and Paldo to establish HYH America.
The ownership structure is notable:
- HY: 46%
- HYBE: 35%
- Paldo: 19%
Unlike a licensing deal where one company simply rents a celebrity’s image, all three parties became stakeholders in the venture.
Each contributes something different.
- HY brings food and beverage expertise.
- Paldo brings manufacturing capabilities.
- HYBE brings one of the most powerful marketing ecosystems in the world.
Together they created ARIH.
The brand combines functional beverages, probiotic sodas, energy drinks, noodles, and convenience foods under a single identity built around Korean culture.
CO-CREATED BY BTS
Perhaps the most surprising detail is the level of BTS involvement.
According to industry sources, BTS members participated in selecting the brand name itself.
The name ARIH is derived from Arirang, the iconic Korean folk song that has long served as a symbol of Korean identity and culture.
Sources also indicate that BTS contributed feedback on the brand concept and product direction during the development process.
That does not necessarily mean the members were formulating beverage recipes or designing packaging line by line.
But it does suggest they were involved much earlier than a typical endorsement arrangement.
In many celebrity partnerships, artists are introduced after a product already exists.
ARIH appears to have been designed from the beginning with artist participation in mind.
BTS brings something that few companies can buy: attention.
The group has spent more than a decade building one of the most engaged fan communities in the world.
Their influence has helped drive:
- album sales
- merchandise sales
- tourism
- streaming
- brand partnerships
around the globe.
For a company attempting to enter the U.S. market, that kind of visibility can dramatically reduce the cost of customer acquisition.
Instead of spending years building awareness, ARIH launches with an audience already paying attention.
THE WALMART FACTOR
The launch strategy is also unconventional.
Most Korean food products establish themselves domestically before gradually expanding overseas.
ARIH is doing the opposite.
The brand debuted through Walmart in the United States, giving it immediate access to one of the world’s largest retail ecosystems.
The decision reflects the broader goal behind the project.
This is not a Korean brand hoping to become global someday.
It is being designed as a global brand from day one.
THIS MAY BE ONLY THE BEGINNING
The long-term implications may extend well beyond BTS.
Because HYBE owns a stake in the venture, the company potentially has access to a much larger artist ecosystem.
That includes:
- BTS
- TXT
- LE SSERAFIM
- ENHYPEN
- and other HYBE artists
Today ARIH is closely associated with BTS.
Tomorrow it could evolve into a broader consumer platform connected to HYBE’s wider portfolio.
That possibility is one reason industry observers are paying close attention.
BEYOND AMBASSADORSHIP
For decades, celebrity endorsements have been among the most lucrative opportunities available to entertainers.
A company pays an artist.
The artist promotes a product.
The relationship ends when the contract expires.
ARIH suggests a different model.
The companies involved have not disclosed how BTS is compensated or whether members participate financially beyond promotional activities.
But structurally, the arrangement creates possibilities that traditional endorsements do not.
If the brand succeeds, revenue can continue long after a campaign ends.
Product lines can expand and new categories can be introduced. Distribution can scale.
In that sense, ARIH is less about selling a beverage and more about building an asset.
Whether ARIH ultimately succeeds remains to be seen. Consumer brands are notoriously difficult to build, and success in entertainment does not automatically translate into success in retail.
What is clear, however, is that HY, HYBE, and BTS are attempting something more ambitious than a typical sponsorship.
They are testing whether a fandom can become a consumer ecosystem and whether one of the world’s biggest music groups can help build a lasting business that extends far beyond music itself.
