Not true in the Kpop industry. Actually, they've reported an increase in physical album sales in the last 5 years. I've been into Kpop for almost two years and I now own more physical Kpop albums than I have any other genre of music before it. (I'm over 40 years old.) But, they give you more for your money than albums you buy in the US or other parts of the world. Kpop producers don't believe in just a jewel case and a CD... no no, you get LOTS more than that, they're like beautiful printed hardcover BOOKS chock full of photos and other extras. They usually come with posters worth framing, and the albums are fun to collect too because they come in an endless variety of formats and designs, not restricted to any particular standard. Each release is physically unique and fits the artistic concept of the album.
I still have more digital Kpop than physical (almost 700 tracks and growing all the time), but I buy M4A files from iTunes that I keep cataloged and sorted. I don't use streaming services any more for music because I refuse be at the mercy of an internet connection or a remote server cluster, neither of which can be guaranteed to be 100% available 100% of the time.