BTS-mania poised to boost South Korea’s economy well into the future
Kpop group BTS pose for a photo as they arrive at the ‘BTS The Comeback Live Arirang’ concert in Seoul, South Korea on March 21, 2026.
Statement | via Reuters
On Friday, tens of thousands of BTS fans will descend on Busan, South Korea, and the seven-member group will make their second stop in the country as part of their trip. Arirang tour around the world.
They will come with light sticks, banners, tickets and money to spend.
The economic impact of popular culture is not new. The term “Swiftnomics” has become shorthand for the impact of Taylor Swift’s Eras Tour, which has filled hotels, restaurants and stadiums around the world.
South Korean brokerage NH Securities now has a term for BTS: Bangtan-nomics, a portmanteau of “Bangtan” and “economy” from the group’s Korean name.
NH described the way fans spend as follows: Online fandom first expands into streaming, albums, and merchandise, then expands into Korean beauty, food, fashion, and eventually tourism.
In a May 21 note, the brokerage said 84% of the global ARMY (BTS’s fan base) is in their teens and twenties. As they grow older and gain more spending power, these fans may come to Korea and contribute to its economy through tourism spending.
In fact, NH estimates that by 2040, BTS fan spending could contribute up to 0.35 percentage points per year to South Korea’s GDP.
To put a number to that, 0.35% of South Korea 2024 nominal GDP About $6.58 billion, according to CNBC’s calculations.
Some early numbers for “Bangtan-nomics” are promising. South Korean media, Citing government data, he said fans who came for the first BTS concert in April would stay longer and spend more than tourists who didn’t come to the concert.
This is supported by a 2019 article by Pyun Ju Hyun, professor of international business and economics at Korea University. Pyun found that BTS concerts held in South Korea attracted a large number of foreign tourists, creating additional spending in the country.
Pyun’s article sent to CNBC surveyed foreign concert attendees in Seoul and found that 98% of attendees said they planned to visit Seoul again in the next five years. Two-thirds said they plan to return to Seoul five or more times in the next five years.
The demand for accommodation for concerts in Busan increased so much that the city government had to intervene to meet the demand. price gouging among traders and open more venues to accommodate large influxes of fans.
Prediction effect
Natalia Grincheva, associate professor at Lasalle Singapore School of Creative Industries, said that while it is reasonable to expect BTS and the broader Hallyu wave to contribute to GDP, it is “overly simplistic” to assume this trend is guaranteed.
It is a geopolitical risk. China imposed sanctions in 2016 A so-called “soft ban” on Korean cultural exports following Seoul’s deployment of the US THAAD anti-ballistic missile system has restricted performances by K-pop groups in China’s Nainland.
Additionally, Grincheva said that fan behavior stems primarily from emotional attachments that are inherently unstable.
“[While NH’s] “If the model presents a plausible trajectory, any reliable forecast must take these non-linear, disruptive factors into account, rather than assuming a smooth economic pipeline from youth fandom to mature spending,” he said.
However, this does not mean that Bangtan-nomics is imaginary.
According to Jonathan McClory, managing partner and soft power expert at Sanctuary Counsel, South Korea could long contribute to economic power alongside its film, television, beauty and food.
He said BTS is “a very successful part of a very successful ecosystem.”
