Economic impact of Kpop throughout South Korea
editTravel and Tourism
edit
In 2012, Psy’s ‘Gangnam Style’ encased the entire world and put Kpop on the map. However, Korean Pop Music was already drawing huge crowds in the Eastern Hemisphere since the early 2000s[1]. From 2005-2011, the Korean music sector had increased at an annual average rate of 23 percent, which is roughly six times the annual average growth of the Korean GDP. At the same time, the world music markets were plunged by 23 percent[2]. South Korea's exponential growth inspired Korea's government to create a sector called the Ministry of Culture dedicated to the expansion of Kpop and Korean culture, "the Korean government treats its K-pop industry the way that the American government treats its automobile and banking industry, meaning that these are industries that have to be protected," [3] This in-return has helped “the K-pop music market experience double digit growth rates. In the first half of 2012, it grossed nearly US$3.4 billion and was recognized by Time magazine as "South Korea's Greatest Export"”[4]As Kpop spread, more people became aware of the Korean Brand. “An opinion survey conducted by the KTO (Korea Tourism Organization) in October 2013 found that almost 60% of tourists who visited Korea were influenced by Hallyu or the Koran Wave”[1]The huge increase in tourism ceased to slow down for years to come. "In 2015, Korea earned USD 15.2 billion from tourism, attracting a total of 13.2 million tourists In 2016"[5]. “17.2 million people visited South Korea in 2016 – up from just 13.2m in 2015 (that's a rise of 30.3 percent)”[6] This boom in tourism positively impacted the employment rate in South Korea by creating 102,326+ new jobs, a 4.7 percent increase from a year earlier.[2]In 2018, the book TRAVEL & TOURISM ECONOMIC IMPACT 2018 says Travel & Tourism directly generated 548,500 jobs (2.1% of total employment) and is predicted a growth by 2.1% in 2018 to 560,000”[5]. Additionally, the popularity of Korean music has affected the educational systems and study abroad programs “The number of overseas applicants for Korean proficiency tests, soared from 2,692 to 189,261 in 12 years. The number of international students in Korea increased at a rate of 27.2 percent since 2001”[2]. Recently, "with the international tourist numbers hitting 1.1 billion in 2014, the international tourist growth forecasted a rate of 3.3% to continue and by 2030 the number is predicted to hit around 1.8 billion"[5].
Merchandise
editKpop merchandise also plays a major role in the boost in South Korea’s economy. Idol groups have a plethora of different items themed around their groups present concept. “Keith Howard, a professor at the University of London, says that the country has seen a return of $5 for every $1 spent on K-pop
—not only from the music, but from its role in selling other Kpop products”[7]. From idols faces on stickers and stationary items to abstract merchandize like body pillows and bed sets, the desire for these products does not waver “South Korean government agencies estimate that K-pop brought more than $11 billion to the economy in 2014”[7]. "The export of products related to Korean culture reached $ 4.2 billion in 2017"[8]. Another big impact of sales in South Korea is celebrity endorsement. In Korea, 61.1% of all ads are endorsed by Kpop celebrities. The effect of this is huge. Sales rose by 400% in 2011 as compared to the previous year after they were endorsed by the idol girl group SNSD[9] Some companies have gone as far as to newly construct a Samsung phone after the Kpop Idols BTS and create LINE characters that resemble their personalities.
 | This user is a student editor in University_of_Wisconsin-Madison/K-Pop_(Fall_2018). |
- ^ a b "Korean Wave (Hallyu) - Rise of Korea's Cultural Economy & Pop Culture". Martin Roll. 2018-01-01. Retrieved 2018-11-08.
- ^ a b c "Global Craze for K-Pop: A New Economic Engine - :: KOREA FOCUS ::". www.koreafocus.or.kr. Retrieved 2018-11-08.
- ^ "How The South Korean Government Made K-Pop A Thing". NPR.org. Retrieved 2018-11-08.
- ^ "A Lesson in Culture from K-Pop and the South Korean Ministry of Culture". exaqueo. Retrieved 2018-11-08.
- ^ a b c TURNER, ROCHELLE (2018). TRAVEL & TOURISM ECONOMIC IMPACT 2018 SOUTH KOREA. World Travel and Tourism Councuk. p. 1.
{{cite book}}: line feed character in|title=at position 17 (help) - ^ Smith, Oliver (2017-06-29). "The world's fastest growing tourist destination will shock you". Traveller. Retrieved 2018-11-08.
- ^ a b "K-Pop Makes the Scene in Seoul". CityLab. Retrieved 2018-11-08.
- ^ "KOREAN CELEBRITY ENDORSEMENT: THE NEW MUST FOR BRANDS". Dare Asia. 2018-06-12. Retrieved 2018-11-08.
- ^ "Celebrity Endorsement in South Korean Advertising". Ewha [Brand Communication] (in Korean). 2016-03-22. Retrieved 2018-11-08.