Impact of BTS on South Korean Economy

Introduction

The "seven deemed misfits" in the K-POP industry during the time they debuted, but little did the world know that 7 years later they would become the “Biggest Boy Band” of the world. Yes, we are talking about BTS- Bangtan Sonyeondan (Bulletproof Boy Scouts).

BTS is much more than just another boy band as their music transcends beyond language barriers. From being a rookie group from a small company, they became the first Korean group to get a BBMA and AMA awards, attended Grammys, and were recently invited to the White House by US President himself.

But do you know that BTS is adding an estimated $5 Billion to the South Korean economy a year? How did the rise of BTS lead to various economic and social effects on the economy? Let’s find out.

The Rise of BTS

Economic Impact of BTS

According to TIME Magazine, BTS is one of the “Most Influential People of 2019”. From grabbing the number 1 spot in iTunes in 104 countries, breaking Adele’s longstanding iTunes record, to giving a speech at United Nations as UNICEF’s global ambassadors for their humanitarian work, they have made great strides towards music and humanitarian work. But BTS’s impact is not limited to that only.

 

• Increase in the Korean GDP: According to the Hyundai Research Institute (HRI) report in 2019, the overall economic effect of BTS is 5.56 trillion won ($4.9 billion) per year in South Korea (as of 2019). No Korean has brought this huge of an economic impact n South Korea. According to the same report, BTS had an annual effect of $2.026 billion, $2.8 billion, and $3.96 billion on Clothing, Cosmetics, and food, respectively. BTS also endorsed various brands, including Samsung, Louis Vuitton, McDonald's, Hyundai, Fila, Puma, Chilsung, Cider, and Kloud, which saw a remarkable increase in their sales and brand reach.
• Increase in Tourism: According to HRI, 796,000 foreigners (7.6% of the total 10.41 million) visit South Korea annually because of BTS, helping the local tourism industry. The Seoul Metropolitan Government gave credit to BTS for helping to recover the Seoul tourism industry, which was negatively affected by the THAAD ban.
• Increase in the Korean BOP: According to the Bank of Korea Economic Statistics System, the South Korean BOP for music and entertainment reached USD 114.7 million in the first quarter of 2019, with one of the driving factors being the global success of BTS.

 

Other Effects of BTS

• The promoter of the Korean Culture & Language: According to the World Economic Forum, BTS’s global success is going against the “cultural odds” as (1) American culture is the “global” culture around the world (making English the global language) and (2) Korean is not even in the top 10 of the world’s most spoken languages, making their success even more surprising.
• Change of Law: Until 2021, all able-bodied South Korean men are required to enlist in the military for about 20 months once they turn 28, if not sooner. But South Korea’s National Assembly, enamored of BTS’s global success, came to BTS’s rescue by passing a revision of the country’s Military Service Act​. The revised law lets top K-pop stars like Kim Seokjin postpone their ​military ​service until they turn 30.
• Invitation from White House: BTS met US President Joe Biden in the White House on June 2, 2022. BTS talked about their experience with anti-Asian hate. They also shared that they had been mocked before for their appearance. They feel surprised that music from South Korea is now reaching people around the world, breaking languages and cultural barriers.

Conclusion

The dedication of the BTS members and their fans has been part of a global movement of individuals acting on the most pressing issues in present times. The band is inspiring the public to create lasting change in the global fight to defend the planet and defeat poverty.

Various contributions of BTS on humanitarian grounds, including BTS's partnership with UNICEF to end violence against children, inspired others to donate money and resources to aid students in need of financial assistance, provide funds of USD 1 million to Black Lives Matter to support racial justice initiatives, and grants to health institutions, teaming up with Love Food Bank and many more.

Their journey has inspired millions and made us realize that no one is perfect by giving hope, comfort, and strength. Most importantly, their act of urging people to love themselves and speak for themselves is what makes the best boyband existing out there.

What are your views on the same? Let us know in the comment section.

References:

1. https://www.globalcitizen.org/en/content/bts-takes-action-global-citizen-live/
2. https://bit.ly/39cewlV
3. https://www.vox.com/culture/2018/6/13/17426350/bts-history-members-explained
4. https://bit.ly/3GUrWPX
5. https://www.cheatsheet.com/entertainment/how-did-bts-become-so-famous-around-the-world.html/
6. https://bit.ly/3zmb5nw
7. https://m.facebook.com/TheScribbledStories/photos/a.1157506880929759/3862032913810462/?type=3