This concert is expected to generate trillions of KRW in economic impact.
The uptick in fandom consumption may establish a new economic model for K-pop.
On March 21, BTS will hold their highly anticipated comeback concert at Gwanghwamun Square in Seoul, marking a significant uptick in consumer demand and heralding the advent of ‘BTSnomics’. Industry estimates suggest this comeback, alongside their world tour, could generate economic ripple effects ranging from a minimum of 1.2 trillion to as much as 7 trillion KRW. As per the 2022 report from the Korea Culture and Tourism Institute, a single BTS concert can yield up to 1.22 trillion KRW in economic benefits, indicating a larger impact from this urban concert and future tours.
The concert, scheduled for 8 PM, is expected to draw around 22,000 live attendees and possibly 260,000 people in total, with real-time streaming through global OTT platforms likely facilitating worldwide consumption. A significant increase in demand across various sectors such as aviation, accommodation, dining, and retail has been observed, with a surge in overseas flight and hotel searches, leading to full bookings in hotels around Gwanghwamun and a doubling of accommodation prices compared to normal weekends.
The commercial sector is responding rapidly, with retailers in the Myeongdong and Gwanghwamun areas extending late-night operations and enhancing marketing strategies tied to BTS merchandise. Major bookstores and shopping malls are curating events themed around the group. Duty-free sectors are also poised for considerable gains, with sales of BTS-related items reportedly doubling compared to the previous week, further augmented by marketing strategies targeting fandom consumption. The secondary market is witnessing surging activity where BTS tour tickets are trading at 4 to 5 times higher than their original price on overseas resale platforms. Analysts estimate the ticket sales during the world tour could reach between 1.1 trillion to 1.2 trillion KRW, and with merchandising and digital content sales, total revenues could touch 1.6 trillion KRW, resulting in revised target prices for entertainment stocks like HYBE.
BTS's comeback concert goes beyond a mere event and has the potential to redefine its impact on the urban economy. With a vast global fanbase, the economic effects of their activities are substantial. The surge in consumer engagement during their concert highlights the vibrancy of their fandom, driving unprecedented economic activity.
The staging of the concert itself, which integrates tradition and modernity, is another focal point. Directed by Hamish Hamilton, the use of historical landmarks to reconstruct the performance format promises a novel experience for the audience, deepening their engagement with BTS's music. This elevates the significance of the space in which the event occurs.
Looking ahead, BTS's ongoing activities are expected to enhance the international standing of Korean culture beyond just K-pop. Their demonstrated economic effects and cultural influence may set a new benchmark for other artists in the future.
This article is KOSTAR’s reinterpretation of a story originally reported by TVDaily.
Photo: An Seong-hu
