Based on an in-depth analysis of the structural change of the music industry where digital music replaces traditional musical records, this research identifies key success factors of Korean popular music industry (K-Pop). Aiming global instead of the collapsed domestic market from the start, K-Pop develops music heavily focused on “idols” who are not so much singers as all around entertainers. While K-Pop uses talent development strategy by casting young talents as trainee and developing them as “idols” through lengthy and systematic training program, K-Pop uses talent acquisition strategy by sourcing globally well-known songwriters and choreographers. This, we term as, “Born- Global Mix of Talent Development & Acquisition Strategy” turns out to be quite successful. Diffusion of social network services such as YouTube and Facebook as a window to consume music & music videos worldwide provides a new opportunity for K-Pop. K-Pop's accumulated capability to manage fandom, which is inevitable for star “idols” music business, enables K-Pop to effectively access foreign market without the help of local major record companies and media. The collapse of domestic music market makes K-Pop to develop so called “the 360 degree business model” in which K-Pop manages not only music related but also non-music related revenues such as performance, acting, and appearance at advertisement and TV shows generated by it's star “idols”. This 360 degree business model enables K-Pop to profitably enter even foreign markets where sales of music is very difficult by providing revenues from non-music activities of it's star artists.