South Korea’s creative economy has emerged as a powerful engine of the country's economic growth, fueled by a unique blend of cultural diplomacy and soft power. At the heart of this transformation is the boy band 방탄소년단 (Bangtan Sonyeondan) well known as BTS, a global sensation that has transcended the boundaries of music to become a symbol of Korea’s cultural influence. As ambassadors of the Korean Wave, or Hallyu, this seven-member boy band has not only redefined global pop music but also demonstrated the immense economic and diplomatic potential of cultural exports. Beyond their groundbreaking music and record-breaking achievements, BTS has had a profound impact on South Korea’s creative economy.

The concept of the "creative economy," characterized by industries based on creativity, knowledge, and intellectual property, has been a core element of South Korea’s economic development strategy since early 2000. The contribution of BTS’ to this vision has been multifaceted, influencing not only the music industry but also tourism, fashion, technology, and global diplomacy. This article briefly explores the ways in which BTS has significantly contributed to establishing and promoting the creative economy in South Korea.

BTS made their debut in 2013 under Big Hit Entertainment, a relatively small entertainment company at the time. Their journey to global stardom was not instantaneous but was built on a foundation of talent, authenticity, innovative social media engagement, and relentless hard work. While South Korea had already gained international recognition in the music scene with artists like PSY and Girls' Generation, BTS achieved a level of success that transcended language and cultural boundaries. Their phenomenal rise has played a pivotal role in boosting South Korea’s creative economy, complementing government initiatives to position culture as a major economic force.

Recognizing the need to diversify beyond traditional manufacturing and export-driven industries, the South Korean government adopted the creative economy as a key strategy for sustainable growth. By promoting sectors such as music, film, fashion, and technology, policymakers aimed to position creativity at the heart of economic development. BTS emerged as a shining example of this vision, exemplifying how cultural innovation can drive significant economic impact. Their global success has not only generated substantial direct and indirect economic benefits but also reinforced South Korea's reputation as a leader in cultural diplomacy and creative industry excellence.

BTS’s economic impact is staggering. According to the statistics of the Hyundai Research Institute, BTS is estimated to contribute over $4.9 billion annually to South Korea’s economy (Oppong 2020). Their concerts, album sales, and merchandise have generated significant revenue, both domestically and internationally. In 2019, their "Love Yourself" world tour generated more than $170 million, and their "Map of the Soul" tour was projected to bring in even greater revenue before it was disrupted by the COVID-19 pandemic (Lamare 2020).

BTS has also influenced other sectors of the economy, such as tourism. The Korea Tourism Organization reports that one in thirteen tourists visiting South Korea in recent years did so because of BTS: locations featured in BTS’s music videos, such as the Busan Gamcheon Culture Village and Jeonju Hanok Village, have seen a surge in visitors (Bate 2022). This "BTS effect" on tourism highlights the interconnected nature of the creative economy, where music (the entertainment industry) can drive growth in travel, hospitality, and retail sectors in a country.

The impact of BTS extends far beyond generating direct revenue for South Korea’s economy. Their influence has permeated industries such as fashion, technology, and beauty etc., aligning seamlessly with the global phenomenon of Hallyu, or the Korean Wave. Through collaborations with major brands like Louis Vuitton, FILA, and Samsung, BTS has played a pivotal role in elevating South Korean companies on the international stage. For instance, their endorsement of Samsung’s Galaxy S20 (mobile phone) significantly boosted both global sales and the visibility of Samsung’s flagship product (Anon 2020a). The beauty industry, particularly the "K-beauty" movement, has also benefited from BTS’s popularity. Their flawless skincare routines and brand partnerships have contributed to the global appeal of South Korean beauty products, driving demand for brands like Mediheal and VT Cosmetics (Anon 2019).

One of the reasons for BTS’s immense success is their innovative use of technology and social media. Platforms like YouTube, Twitter, and Weverse (HYBE’s fan community platform) have enabled BTS to maintain a close relationship with their global fan base, known as ARMY. This digital engagement strategy has not only revolutionized how artists connect with fans but has also provided a blueprint for other creative industries.

The rise of virtual concerts during the COVID-19 pandemic further highlights BTS’s role in promoting technological innovation. Their virtual concert "Bang Bang Con: The Live" set a Guinness World Record for the most viewers of a live-streamed concert, drawing 756,000 viewers from over 100 countries (Anon 2020b). These innovations showcase how technology can be integrated into the creative economy, providing new revenue streams and reaching global audiences.

Beyond economic contributions, BTS has served as cultural ambassadors for South Korea, enhancing the country’s soft power. Their speeches at the United Nations General Assembly and partnerships with UNICEF’s "Love Myself" campaign have promoted positive global messages, enhancing South Korea’s international image.

This soft power influence supports the creative economy by fostering cultural diplomacy. Countries with strong cultural influence often experience greater interest in their products, services, and culture. BTS’s global visibility has inspired interest in learning the Korean language and Korean food, consuming Korean media, and appreciating South Korean culture, thereby supporting other creative sectors like the media industry and literature.

While BTS has significantly boosted South Korea’s creative economy, there are challenges to sustaining this growth. The reliance on a single group or a few key players exposes the economy to risk if these artists disband or experience decline. Additionally, issues surrounding intellectual property rights, fair compensation for artists, and the mental and physical health of entertainers must be addressed to ensure long-term sustainability. However, the success of BTS has paved the way for other South Korean artists and industries to thrive. The "BTS effect" demonstrates the potential of the creative economy and serves as a model for integrating creativity, technology, and global engagement.

BTS has undoubtedly played an unparalleled role in establishing and promoting South Korea’s creative economy, paving the way for many other K-pop groups to gain international recognition. Their global success has not only elevated K-pop as a genre but also opened doors for emerging artists, allowing them to reach audiences worldwide and cement the global influence of K-pop as a cultural phenomenon.

Their contributions span music, tourism, fashion, technology, and cultural diplomacy, creating a ripple effect that benefits numerous industries. By leveraging their global influence, BTS has helped South Korea become a leader in the creative economy, demonstrating that creativity, innovation, and cultural exchange can be powerful drivers of economic growth. As South Korea continues to evolve its creative industries, the legacy of BTS will undoubtedly remain a cornerstone of this transformation, inspiring future generations and shaping the global cultural landscape.

References

Anon. 2019. “Korean Beauty Brand MEDIHEAL Partnering with K-Pop Group BTS.” Korea Product Post.
Anon. 2020a. “I Purple You: Introducing Samsung Galaxy S20+ 5G and Galaxy Buds+ BTS Editions.” Samsung Newsroom.
Anon. 2020b. “Most Viewers for a Music Concert Live Stream on a Bespoke Platform.” Guinness World Record.
Bate, Ellie. 2022. “BTS in Busan: Lights, Love and Legacy.” TeenVogue.
Lamare, Amy. 2020. “Here’s How Much BTS Earned Last Year.” Celebrity Net Worth, June 27.
Oppong, Thomas. 2020. “Maximizing The Marketing Mix: How BTS Brings in $4.9 Billion to The Korean Economy.” AllTopStartups, February 3.