[비즈한국] There are largely two reasons why the public pays attention to BTS. One is because they reach No. 1 on the Billboard charts or are nominated for the U.S. Grammy Awards. The other is their economic impact, and the attention grows as the scale of that impact increases. The title of being 'ranked in the world' serves as a benchmark for national prestige in Korea, and economic effects are perceived as positive not only for national interest but also for the livelihood of the people. As the nationalism of the past authoritarian government era has faded, the atmosphere has shifted increasingly toward focusing on economic effects.
In 2018, the Hyundai Research Institute estimated the 'economic impact of BTS' to be 5.56 trillion won per year on average. The research methodology used statistical regression analysis. The economic effect was estimated based on the assumption that a 1-point increase in brand awareness leads to a 0.45%p increase in the growth rate of foreign tourists three months later. Since 2013, the number of foreign tourists has increased by an average of 796,000 per year. By calculating that a 1-point increase in BTS awareness leads to export growth rates of 0.18% for clothing, 0.72% for cosmetics, and 0.45% for food, it was estimated that there has been an average annual export effect of 233.98 million dollars in clothing, 426.64 million dollars in cosmetics, and 456.49 million dollars in food since 2013. It also concluded that BTS's average annual production inducement effect is 4.1 trillion won and the value-added inducement effect is 1.4 trillion won, leading to articles stating this is equivalent to Tesla's operating profit last year (4.3 billion dollars). At the time, the Hyundai Research Institute predicted that an economic effect of 56 trillion won would be generated by 2023.
A research team led by Professor Pyeon Ju-hyun of Korea University Business School calculated the economic impact of the 'Love Yourself: Speak Yourself' final concert held by BTS for three days at the Seoul Jamsil Olympic Stadium in 2019 using the same method and estimated it at 922.9 billion won. In 2020, the Korea Culture and Tourism Institute under the Ministry of Culture, Sports and Tourism released a calculated figure that the economic effect of reaching No. 1 on Billboard was 1.7 trillion won. The U.S. business magazine Fortune reported that BTS generates more than 3.6 billion dollars (approximately 4.7 trillion won) in revenue every year.
Bloomberg recently estimated that BTS would earn approximately 177 million dollars (about 266 billion won) in Seoul alone from airfare, accommodation, dining, and merchandise. According to the Korea University research team's assumption, the revenue for the Goyang Sports Complex concert, the first show of the three-day 'ARIRANG' world tour, reaches 1 trillion won, and according to Bloomberg's estimate, 800 billion won. If so, they have generated an economic impact of around 1 trillion won through the Gwanghwamun Square and Goyang concerts combined. Applying this, they earn about 1 trillion won in revenue for every four performances in each country. If they perform 82 shows, they would generate about 20 trillion won in revenue, thus surpassing the economic impact of Taylor Swift.
According to past reports from the Washington Post and others, Swift's Eras Tour revenue was 14 million dollars (about 18.3 billion won) per show. In 2023, the indirect consumption generated by Swift's U.S. city tour was around 5 billion dollars (about 7 trillion won), and it was considered to have increased the U.S. Gross Domestic Product (GDP) by approximately 4.3 to 5.7 billion dollars (about 5.6 trillion to 7.4 trillion won). However, Taylor Swift is largely limited to the U.S., and even in a broader sense, it is limited to English-speaking countries such as the U.K., Australia, Singapore, Hong Kong, and the Philippines.
However, the economic impact of BTS could initially lack accuracy, as it is mostly based on activities before their military enlistment. Since they strengthened their individual activities alongside military service, the periphery of their fandom has widened further. Therefore, the economic effect could be greater than before. Moreover, it is difficult to calculate the economic effect that the Arirang concert at Gwanghwamun Square, which was broadcast live to over 190 countries via Netflix, will bring. Cases of live broadcasts in theaters have now appeared. In Mexico, the video of the BTS concert held at KINTEX in Goyang, which was broadcast live, took 2nd place at the weekend box office on the 11th. The revenue reached 48.1 million pesos (about 4.1 billion won). This is higher than in the U.S. Sales outside the English-speaking world are highly anticipated, with particular attention focused on South and Central America, where BTS's popularity is high.
Being enthusiastic about hitting No. 1 on the Billboard Hot 100 or Billboard 200 may inevitably involve a nationalistic perspective. What is more important is how long they stay on the charts; the longer the chart-in period, the greater the economic impact. As the presence of economic impact is considered helpful to the nation and the people's livelihood, it can be an effective means to highlight the importance of BTS. However, the effects caused by the fandom's love for BTS cannot be gauged by such things.
The idea that there is no economic impact just because the ranking on the charts slips slightly is merely an external perspective. External eyes cannot intervene in a loving relationship. Especially since the core fandom is solid, there is no means or value that can replace it. Looking at that heart makes one think not only about the economic aspect but also about the progress of our society. It means that the path to a better world for the entire globe is contained within that heart. It is a sustainability that goes beyond loyalty in a consumption relationship.
What is important is not the immediate effect right now. BTS fans are going through their teens and 20s and growing into the central axis of society. It can be called the growth of the future generation. Especially abroad, early adopters are the ones who love BTS. In many countries, those who are middle-class or above and promising are K-pop fans. This can be called a massive, immeasurable future asset. Currently, parents are influenced because their children are fans, but after they grow up and become parents themselves, they will influence their own children. The so-called 'Disney Effect,' where three generations enjoy something together, can also emerge in K-pop. The value of K-pop that transcends generations will grow to an immeasurable extent.
The author, Kim Heon-sik, has walked through or traversed the forest of popular culture phenomena since his 20s, with the expectation that there is a way to make the world a better place through culture. He continues on the same path with the same belief in the 21st century, where artificial intelligence and quantum computers are active.