BTS’s 10-Year Economic Impact To Korea Expected To Reach Over 56 Trillion Won
Experts have predicted that once BTS hits their 10-year mark, they will have made an economic impact that surpasses even that of the 2018 PyeongChang Winter Olympics. December 18, the Hyundai Research Institute (HRI) released a report stating that for the period of 2014 through 2023, BTS’s economic impact will reach an estimated total of 56.2 trillion won (approximately $49.8 billion). It’s a combined figure including production inducement effects (41.9 trillion won) and value-added creation effects (14.3 trillion won) over 10 years. For comparison, the PyeongChang Winter Olympics this year, according to the Korea Development Institute, achieved a total economic impact of 41.6 trillion won (approximately $36.9 billion). HRI used a variety of metrics in order to quantify and analyze BTS’s economic effect, including Google trends, regression analysis, inter-industry analysis, and more. Per their findings, BTS’s rise in popularity led to a large increase in tourism to Korea as well as export of consumer goods. According to the report, BTS now brings in an annual average of 796,000 tourists, roughly 7.6 percent of 2017’s total number of 10.4 million. The group’s average annual contribution to the export of consumer goods is roughly $1.1 billion, which is 1.7 percent of last year’s total consumer exports of $65.2 billion. The HRI report states the industries that saw the greatest effect were clothing, cosmetic, and food, which were bolstered by BTS’s official endorsements as well as their social media presence. The group’s average yearly production inducement effect is 4.14 trillion won (approximately $3.7 billion), roughly 26 times that of the average yearly sales for a mid-sized company in Korea, while BTS’s average yearly value-added creation effect is 1.4 trillion won (approximately $1.3 billion).
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