• Funding Stage : Pre-series A
• Raising amount : KRW 350 M
• Desired Fundraising Timeframe : 3Q 2025

In Korea, Hyundai Department Store’s “2024 Top-Grossing Pop-Up Store” crowned virtual YouTuber girl group ISEGYE IDOL as number one, generating USD 2.71 million (KRW 3.8 billion) in sales. The runner-up was virtual male idol group PLAVE, which recorded USD 8.14 million (KRW 11.4 billion) in 2023 revenue and USD 1.36 million (KRW 1.9 billion) in operating profit, proving virtual artists can thrive in music alongside human performers.

Today’s featured company, HOW3, is a startup creating the music-performing character Ha Woo Sam (HOW3), founded in 2023 by composer Junsu Kwon, known as RTMKNG. Kwon has a distinguished track record, producing chart-topping hits for K-pop artists like Block B and Bumkey on Melon, winning the 2009 Billboard Songwriting Contest, and becoming the first East Asian to win the Electronic category of the 2010 John Lennon Songwriting Contest, showcasing global success.

Why did Kwon launch a “music-performing character artist” now? “In an era of expanding digital content, I wanted to innovate with virtual artists as a new medium,” Kwon explains.

As he suggests, Korea’s virtual idols are ushering in a new era, but Japan’s more developed virtual artist market dwarfs Korea’s. Hololive Production (Cover Corporation) reported 2023 revenue of USD 225 million (JPY 30.1 billion) and operating profit of USD 41 million (JPY 5.5 billion), a 47.5% growth from the previous year. Nijisanji (Anycolor Inc.) achieved USD 239 million (JPY 32 billion) in revenue and USD 84 million (JPY 12.3 billion) in operating profit.

As the market grows, how prepared is HOW3? Kwon, while active as a composer, served as music director and planner at a major entertainment firm since 2016, observing virtual artist production. He recognized the need for integrated content combining characters, stories, music, and animation.

Kwon founded HOW3 and created the character Ha Woo Sam (HOW3), personally handling songwriting, story development, character design, and animation concepts. When asked why he did this alone, he said, “From my previous company, I learned that integrated content must stem from a creator’s cohesive vision, not a mix of conflicting opinions.” The biggest risk in such projects lies early on, with costs ranging from several hundred million to several billion Korean won, for character design, story, animation, and music. To minimize risks and ensure consistency, Kwon meticulously crafted the initial setup. As a result, HOW3’s story spans two years of serialized content, and 45 characters featured in its animation have completed trademark registration.

HOW3 targets global Gen Z fans, who face societal uncertainties before entering the workforce. Its story revolves around characters using music to forge their paths against powerful villains, inspiring youth and fostering musical connection, Kwon’s core goal.

Content businesses are hard to predict until fan reactions emerge. Despite this, Kwon is confident: “We plan to target the U.S. market first. We’ve conducted PoCs with U.S. users, signed agreements with major U.S. labels, and they’re eager for our music.” His past success as RTMKNG, with all releases turning a profit, bolsters this confidence, reflecting his deep understanding of music industry success.

Confidence alone doesn’t guarantee success. Through extensive discussions, Kwon proved himself not just an artist but a dedicated entrepreneur. He learned AI and illustration to ensure consistent character design and had webtoon artists review his storylines, showcasing his commitment.

WOW Partners, recognizing the growth potential of virtual artists and Kwon’s innovative music integration, selected HOW3 as a member of “WOW NEXT 1st Cohort.” This is a bold move for WOW Partners, typically focused on deep-tech fields like biotech, materials, and AI.

Kwon asserts, “A single creation speaks louder than countless explanations.” He plans to release music, YouTube animations, and short-form content in July, gauging public response to execute their vision. The debut of HOW3’s meticulously planned work is highly anticipated.

What problem is HOW3 trying to solve?

HOW3 addresses the scarcity of innovative content despite the rise of the digital content era. As seen with SM’s Naevis and Hybe’s SYNDI8, major entertainment firms are intensifying virtual artist competition, with successes like PLAVE and ISEGYE IDOL.

Traditional human-artist business models struggle to adapt to fast-evolving social media and new paradigms, with fandom culture shifting from artist-centric to fan-influenced.

Just as the LP industry birthed The Beatles and smartphones enabled TikTok and Spotify stars, AI and AR technologies demand new stars. HOW3 aims to solve this.

The second issue is the high cost of digital content creation and marketing. While “Universe Style Multi-Use” content offers scalability and long-term revenue, most risks concentrate early on, with high costs and unpredictable success. HOW3 also tackles wasteful marketing practices like music hoarding and excessive viral campaigns.

How does it solve this problem?

Music, with low production costs and strong viral potential, is a powerful medium. Character IPs immerse fans in a worldview, encouraging active participation. HOW3 combines music and character-driven storytelling to create new stars, meeting user demands.

Creating such integrated content requires significant initial investment. Kwon, an expert in music, illustration, and storytelling, mitigates early risks with his unique planning expertise.

HOW3 builds a fan engagement ecosystem through pop-up concert theaters, rhythm games generating music revenue via streaming platforms, and card games tied to the “Battle Seoul” universe, addressing fans’ desire for social connection and reducing wasteful marketing by fostering profitable fan communities.

What are HOW3’s competitive advantages and technical strengths compared to competitors?

Human artists offer star power but face privacy risks and struggle with digital culture’s fan-driven consumption. Virtual idols overcome some limits but face barriers as “illustrated characters” and scalability issues.

HOW3 introduces a new model, blending music, stories, and characters into integrated content, overcoming both models’ shortcomings.

Integrated characters enable rapid growth. HOW3 has contracts with major U.S. music firms, and Kwon contributed to Tim Burton’s Wednesday OST alongside The Rolling Stones, Metallica, and Dua Lipa, with proven U.S. market success since 2016.

For differentiation, HOW3 offers rhythm games linked to streaming services, generating revenue through gameplay, a fan community aggregating and resharing social media posts, and a “Battle Seoul” web magazine using a “versus” narrative to boost engagement. Pop-up concert theaters with photo zones, merch shops, and card game tournaments let fans actively experience content, not just watch performances.

HOW3’s characters, beyond mere content, feature 24 main characters in a Marvel-level detailed universe, showcasing conflicts and charm. The Battle Seoul web magazine creates immersive, narrative-driven content for global fans, surpassing tourism-focused predecessors.

What products/services does HOW3 offer, and what is their current status?

HOW3 develops the music-performing character HOW3, integrating music, characters, animation, and fan communities. It aims to build a cultural ecosystem via albums, YouTube animations, and pop-up concert theaters.

It has raised USD 0.71 million (KRW 1 billion) in seed funding, secured venture certification, signed offline promotion contracts and MOUs with U.S. partners, and registered 45 character copyrights and 13 trademarks.

Developed with SurveyMonkey, 80% of surveyed users expressed interest in the characters, with 41% showing strong favorability. The 19% uninterested were 60+ with no Korean culture interest, indicating strong PoC for the MVP.

Starting June, services will launch, with the first song released in July. In 2025, HOW3 plans 2–3 official songs, weekly webtoons, and shorts.

What is the target market size, and who are the core customers?

The music and character-based market is vast, making the integrated market hard to quantify. HOW3 estimates a minimum addressable market of USD 250 million (KRW 350 billion) and is targeting this.

Core customers are global Gen Z, not yet integrated into society, living online. They seek control, creative problem-solving, and entrepreneurial spirit, embracing DIY culture, participating in character identity and growth, and creating new outcomes.

What is our business model?

The ultimate revenue model is character licensing. To gain recognition, HOW3 will use music to popularize characters.

Initial cash flow will come from music, with growth via concerts, events, merch, pop-up stores, and YouTube ad revenue, ultimately driving sales through characters.

What are our team’s achievements?

First, HOW3 secured contracts with U.S. partners, including LA’s White Mountain Agency (worked with B.O.B, Dok2), Kansas’ KKFI radio, Otakon, and APM Music (Sony Music & Universal). They’ll support U.S. tours, radio, 2026 World Cup events, Billboard 100 artist features, global music distribution, and Otakon participation.

Second, it registered 45 unique character copyrights, 13 trademarks, and raised seed funding.

Third, a partnership with Chungkang University’s top animation department ensures student jobs and animation production synergy.

What is the HOW3 team’s competitiveness?

Kwon, as RTMKNG, is a composer who hit Melon’s 18th spot, contributed to Tim Burton’s Wednesday OST, and secured an APM Music license, exporting music for Kim’s Convenience and the 2021 Tokyo Olympics. He produced Melon number-one hits for Block B and Bumkey.

Before founding HOW3, he won over USD 1.43 million (KRW 2 billion) in Korea Content Agency grants (2012 Mu:con, 2017 album production, 2018 online music). He earned Billboard Songwriting Contest awards and the John Lennon Songwriting Contest’s Electronic category as the first East Asian winner.

His album “Lovesong” achieved 100x operating profit (over USD 0.71 million/KRW 1 billion in single-track revenue), and “Think About You” hit Melon’s 18th spot (over USD 0.29 million/KRW 0.4 billion). He’s a versatile expert in music, characters, and design.

The team includes experts in illustration, animation, and generative AI fluent in English and Chinese, plus a top Korean animation director, bolstering content creation.

Why should we receive investment? Three reasons!

First, social media and AI advancements fuel the digital content era, and HOW3’s superior business model outshines competitors.

Second, product development is complete, with partnerships and a strong team ready for commercialization.

Third, the OSMU(One Source Multi Use) model offers high scalability, poised for rapid growth with proven business viability.