[BTS and 10 Years Together]② '7 Youths Equal to 26 Mid-sized Companies'... "Earned 38 Trillion Won for Korea"

Foreign Fans Make Up 50% of Domestic Concerts
Significant Economic Impact on Accommodation and Shopping

38 trillion won over 10 years. This is the estimated economic impact of BTS as calculated last year by the American business magazine Fortune. At the time, Fortune stated, "Analysts predict that from 2014 to 2023, BTS will generate $29 billion (approximately 38 trillion won) in added value to the Korean economy," adding, "They have not only significantly contributed to Korea's wealth but also shaken the financial markets." Fortune also cited a report from the Hyundai Research Institute, noting, "BTS contributes more than $3.6 billion (about 4.7 trillion won) annually to the economy," which is equivalent to the contribution of 26 medium-sized companies. Celebrating their 10th anniversary, BTS was the embodiment of K-content itself.

How Was the 'Annual 4 Trillion Won' Calculated?

The Hyundai Research Institute report cited by Fortune was published in 2018. According to the report, from BTS's debut in 2013 through 2017, the number of foreign tourists visiting Korea because of BTS was estimated to average 796,000 per year. Their spending generated approximately 1.63 trillion won in induced production value. Additionally, thanks to BTS, the increase in exports of major consumer goods such as clothing, cosmetics, and food resulted in an average annual induced production value of 2.51 trillion won. Combining these, the institute analyzed that an economic effect of about 4.14 trillion won per year was generated.

[Photo by BigHit Music]

The basis for calculating the economic effect was 'Google Trends.' The point when BTS's search volume was highest was set at 100 points, and the impact on foreign tourists and consumer goods exports after their 2013 debut was analyzed. As a result, for every 1-point increase in awareness, foreign tourists increased by 0.45%. Exports rose by 0.18% for clothing, 0.72% for cosmetics, and 0.45% for food, respectively.

This report is not the only source addressing BTS's economic impact. In 2019, Forbes in the U.S. released an analysis stating that BTS generates an annual GDP effect of $4.65 billion (about 6 trillion won). The following year, the Ministry of Culture, Sports and Tourism and the Korea Culture & Tourism Institute estimated the economic effect of BTS's 'Dynamite' reaching number one on the Billboard 'Hot 100' chart at 1.7 trillion won. This evaluation was based on the agency's sales scale, Bank of Korea input-output tables, Korea Customs Service import-export trade statistics, and 'Google Trends' search volume.

12 Trillion Won Generated per Concert

The latest data on BTS's economic impact comes from a report published last year by the Korea Culture & Tourism Institute, which focused on concerts. It analyzed that if a concert venue with a capacity of 65,000 has a 50% foreign audience ratio, the induced production effect per concert is 1.2206 trillion won.

[Photo by BigHit Music]

Specifically, 209 billion won is generated on-site through merchandise sales and ticket revenue, while 1.0116 trillion won in induced production occurs outside the venue. Foreign audiences tend to spend more than domestic audiences in various sectors such as transportation, accommodation, shopping, and dining during the concert period. Therefore, the economic effect increases as the proportion of foreign attendees rises.

On the day of BTS's last 'full-group concert' in October last year in Busan, approximately 503,000 people visited the city, nearly 200,000 more than the monthly average. Of the 60,000 attendees at the venue, about two-thirds were foreigners. Paradise Busan, linked with BTS's agency Big Hit Music, also saw a similar proportion of foreign guests. The economic effect at that time was estimated to be close to 1 trillion won.