Forbes Estimates BTS's Economic Value at 5.18 Trillion KRW
Blackpink Prepares First Girl Group World Tour
Securities Firms Increasing Analysts Focusing on Entertainment Industry
Forbes estimated BTS's economic value at 5.18 trillion KRW, while the Hyundai Research Institute estimated it at 5.6 trillion KRW. Photo by Yonhap News Agency
[Asia Economy Reporter Han Seung-gon] Winners of the 'K-pop Cover Dance Competition' held in various countries around the world showcased their dazzling moves at the Blue House on the 14th. Starting from 10 a.m. that day, they demonstrated their skills to K-pop music, including BTS's latest songs, in the plaza in front of the Blue House main building. This competition, involving 87 participants from 12 countries including the United States, Poland, Mexico, Australia, and Japan, features the winning teams of the world K-POP cover dance representatives performing flash mobs across various locations in downtown Seoul before the finals. K-pop, which is soaring in popularity, has already shown an undeniable growth trend industrially. Securities firms also highly evaluate the entertainment industry.
The status and industrial value of K-pop have attracted attention from abroad for several years. The American magazine 'Seventeen' cited data from Celebritynetworth.com, a site predicting the asset value of stars who may become future billionaires, to evaluate the economic value of BTS member 'V.' According to this, as of 2018, V's net worth was approximately 8 million dollars (about 9.5 billion KRW). It added that this value changes immediately whenever V releases musical works, emphasizing the great value of singer-songwriter V's talent.
According to the Guinness World Records, BTS's YouTube views are making new history every day. As of April, 165 video clips recorded 25,390,610,000 views. This means the global population of 8 billion watched an average of 3.16 times. On a daily average, the number of views is 10.9 million.
The most viewed clip is the official music video for 'Boy with Luv,' featuring American pop star Halsey, with a cumulative 1.5 billion views. Additionally, five other official music videos?'Dynamite,' 'DNA,' 'MIC Drop,' 'Idol,' and 'Fake Love'?have surpassed 1 billion views each. Considering that YouTube ad rates increase with views, K-pop has already established itself as an economic and industrial value.
Winners of 'K-pop Cover Dance Competitions' from around the world are performing a flash mob in front of the main building of the Blue House in Jongno-gu, Seoul on the 14th. Photo by Yonhap News
Regarding BTS's unstoppable progress, The New York Times praised in March 2017 that "K-pop shows many cultural connections with hip-hop and can serve as a model for bringing different cultures together."
Riding on this popularity, Forbes estimated BTS's economic value at 4.65 billion dollars (about 5.18 trillion KRW) in April, and the Hyundai Research Institute calculated a similar figure of 5.6 trillion KRW. The Hyundai Research Institute measured BTS's popularity through Google search volume and analyzed how much exports of clothing, cosmetics, and food increased with every one-point rise in recognition.
As a result, they found that when BTS's recognition increases by one point, the monthly export volume of major consumer goods rises by 0.18 percentage points for clothing, 0.72 percentage points for cosmetics, and 0.45 percentage points for food. Based on this standard, the economic effect generated by BTS from their debut in 2014 to 2023 is estimated to be about 56 trillion KRW.
Given this situation, investment demand in the entertainment industry has also increased in the securities market. In 2018, there were 10 securities analysts covering JYP Entertainment, but now the number has risen to 18. Furthermore, the scope of companies analyzed by analysts covering the entertainment industry has expanded. Kiwoom Securities began analyzing HYBE, DearU, and Cube Entertainment, while NH Investment & Securities started analyzing SM Entertainment.
Recently, BLACKPINK entered the US Billboard Hot 100 main singles chart for six consecutive weeks with their second full album 'BORN PINK.' As a result, 'Shut Down' and 'Pink Venom' have been on the Hot 100 chart for six weeks. Due to this popularity, BLACKPINK plans to hold a world tour concert with a total audience of 1.5 million, the largest scale ever for a K-pop girl group, until June next year.
Considering the astronomical economic value BTS is creating, the industrial revenue BLACKPINK can generate is also expected to be significant. YG Entertainment explained, "Following Billboard, BLACKPINK is topping charts such as the UK Official Charts and Spotify's Weekly Top Songs chart, the world's largest streaming site."
Experts analyze the K-pop phenomenon, which has effectively become a global music genre, as a new genre that people cannot help but like. In 'K-pop is Black Music' (2022, Nulmin Publishing) by Crystal Anderson, a professor at George Mason University, Anderson defines K-pop as a form of Black music, recognizing the greatness of Black music, which is the foundation of hip-hop, R&B, and rock and roll, and states that elements of Black music are visible in K-pop as well.
Meanwhile, the 12th 'K-pop Cover Dance Festival' this year will be held offline for the first time in three years, overcoming COVID-19. The winning teams of the world K-POP cover dance representatives will compete in flash mob style across various locations in downtown Seoul.
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