BTS’s Economic Effect From “Dynamite” Estimated To Reach 1.7 Trillion Won
Recently, BTS’s new English-language track “Dynamite” made history when it entered Billboard’s Hot 100 chart at No. 1, which is the highest ranking on the chart achieved by an all-Korean group.
On September 7, the Korea Culture and Tourism Institute’s Cultural Industry Research Center shared that their analysis of Big Hit Entertainment’s sales, Bank of Korea’s input-output statements, Korea Customs Service’s customs, imports, and export trade statistics, and Google trend search volumes reveal that direct sales from “Dynamite” have reached 245.7 billion won (approximately $206.9 million).
The increase in exports for related merchandise such as cosmetics, foods, and clothing items is estimated to be around 371.7 billion won (approximately $312.8 million). The resulting production-inducing effect is estimated to be 1.2 trillion won (approximately $1.0 billion), the value-added inducement effect is estimated to be 480.1 billion won (approximately $404.0 million), and the employment-inducing effect is estimated to be 7,928 people. The results exclude the effect of attracting foreign tourists due to the spread of COVID-19.
A source from the research center explained, “In the process of calculating the scale of direct sales, we excluded the profits from concert tours after considering the reality that live concerts are impossible, and we implemented profits from online concerts. If we take attracting foreign tourists and live concerts into account, and if we additionally consider the synergistic effects of the uptrend in the nation’s image and brand, the economic effect will be even greater.”
Park Yang Woo, the Minister of Culture, Sports, and Tourism, commented, “The results BTS have actually achieved greatly exceed this number. Not only have they provided a type of remedy to people all over the world suffering from COVID-19, but they have also become the pride of South Korea’s culture once again.”
With the strength of BTS and the film “Parasite,” South Korea has entered the top 10 of the Global Innovation Index for the first time since 2007. In the 2020 Global Innovation Index released on September 2 by the United Nation’s specialized agency World Intellectual Property Organization (WIPO), South Korea rose one place from last year to rank No. 10. Following Singapore at No. 8, South Korea ranked the second highest among Asian countries.
The results could be largely due to rising from No. 42 to No. 19 in “index of creative goods and services,” which is related to cultural industry performance. A source shared, “South Korea rose from No. 22 to No. 13 in ‘film production,’ No. 54 to No. 53 in ‘export of cultural and creative services,’ No. 19 to No. 18 in ‘entertainment and media market,’ and No. 16 to No. 14 in ‘export of creative products.'”