K Wave is a Korean entertainment company that creates, produces, and monetizes intellectual property across TV dramas, films, and music merchandise. The company operates four primary segments: Content Merchandising, Content Production, Content Investment, and Food and Beverages. Its Content Merchandising segment, operated through Play Company, distributes video-based merchandise and photo books for major K-pop artists like BTS and Seventeen and maintains a distribution agreement with HYBE. The Content Production segment develops films and TV series for theatrical release and global streaming platforms like Netflix and Disney+. Content Investment is managed through Solaire Partners, a private equity firm that earns management fees from investments in Korean media. K Wave also operates "Our Bakery" cafés in South Korea and China. The business model generates revenue through merchandise sales, content licensing fees, and royalties from owned IP. In May 2026, K Wave's board approved a strategic pivot away from entertainment toward AI infrastructure, including data centers and GPU compute, and announced the planned sale of its merchandising subsidiary. Key costs include talent fees, manufacturing inputs for merchandise, and labor.