Did Corona increase the gap between the Big 3/4 and Non-Big 3/4?

Yes. The gap has increased primarily because the pandemic increased costs, partly tying into the expanded global K-pop arena from its boom period.

In 2021, during covid, the cost to make a music video cost about 100 million won on average according to people in the industry:

As recently as last year, the costs are much greater (http://koreabizwire.com/soarin…tious-global-reach/275014), entering into the 500 million won territory:

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The post-COVID-19 era has seen a surge in studio rental and professional labor costs, further inflating budgets. The value placed on individual dancers and choreographers, now often regarded as independent artists, has also led to increased filming expenses.

The increasing significance of music videos in K-Pop promotion is evident in the extensive investments made by record labels.

Music videos not only serve as a visual treat for global fans unable to access Korean TV performances but also play a crucial role in defining an artist’s stature through YouTube views, influencing both Billboard chart positions and domestic music show rankings.

Not only is this from the post-covid world but also because the K-pop boom by trying to capture international attention (https://www.koreatimes.co.kr/e…-boom-small-ones-struggle):

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In the rapidly evolving K-pop industry, the financial disparity between large and small agencies is becoming increasingly pronounced.

A few years ago, a decent music video could be produced for around 150-200 million won ($112,000-150,000), but, today, those costs have soared to 400-500 million won, with some projects even reaching 800 million to 1 billion won, according to entertainment company officials.

Min Hee-jin, CEO of Ador, emphasized the struggle of smaller companies, once telling reporters, "Don't just cover press releases from big companies like HYBE, but also write about smaller, struggling companies like Ador. Truly poor companies can't afford to produce three music videos for a rookie group like NewJeans."

An agency official, identified only by the surname Lee and involved in K-pop group production for nearly a decade, expressed concern about the increasing costs of producing K-pop groups.

"These days, you have to consider the overseas market from the debut, so producing high-quality music videos has become essential," Lee said. "Producing just one music video per album can't compete with groups that produce several, accelerating the 'rich get richer, poor get poorer' phenomenon."

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Covid is an explicit reason for this:

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Kim, another member of the production department at a major K-pop agency, said, "Compared to just before the COVID-19 pandemic, music video production costs seem to have risen by over 30 percent."

The steep rise in music video production costs is due to increased material and labor expenses, along with a greater reliance on elaborate sets, computer graphics, and other extra costs.

"Before the pandemic, each set cost around 30 million won. Now, a similar set costs about 50 million won. Using five or six sets for diverse scenes will cost at least 500 million won," said Lee.

Big 3+Hybe are in better positions to bear such costs due to built-in fanbases while smaller companies take on a greater risk that takes a lot of effort to dig out of, from start-up costs to management costs:

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On this day, Choo Sung Hoon asked whether it's possible to make money despite the difficulty of an idol achieving success. Jaejoong explained, "The best scenario is for the group to start making a profit about three years after debut... It's expensive, it costs around 20 Billion KRW (13.7 million USD) a year to manage two teams."

Jaejoong based his response on the K-pop industry system, where companies must make a significant pre-debut investment. This process includes discovering members, training them for years, and producing content, all before generating any revenue.

Expenses begin at the casting stage, where agencies visit K-pop academies worldwide or hold auditions abroad, incurring costs for staff travel, lodging, and venue rentals. Some companies even invest tens of billions of KRW (millions USD) upfront by creating and producing their audition TV programs.

Jaejoong reveals it costs his agency 20 billion KRW (approx. 13.7 million USD) per year to manage two idol groups

Jaejoong revealed the total cost of launching an idol group recently.Jaejoong spoke about his upcoming ventures in the new episode of the …

www.allkpop.com

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"The production cost of creating a K-pop group typically starts at around 3 billion won to 5 billion won ($2.17 million - $3.62 million), which usually covers the release of two to three albums. The real expense isn’t in the training — it’s in making the group successful. To achieve that, releasing five to 10 albums within one or two years is essential, and along with marketing, this can cost around 5 billion won."

[Behind the K-pop Scene] 'K-pop is all about money'

Behind the glitz and glamour of K-pop lies a business reality driven by fierce competition and substantial financial investment. While K-pop idols shine on…

www.koreaherald.com

When the company is no longer able to afford anything, they tap out. Big 3+HYBE are simply in a better position to survive these costs from revenues and investment. Smaller companies must attain success relatively quickly or tap out.