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Economic impact of kpop throughout South Korea
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Tourism and Travel
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. 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 other music markets around the world were plunged by 23 percent". 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," 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"” 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” “17.2 million people visited South Korea in 2016 - up from just 13.2m in 2015 (that's a rise of 30.3 percent)” 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". From idols faces on stickers and stationary items to abstract merchandize like body pillows and bed sets, the desire for these products never ceases to waver “South Korean government agencies estimate that K-pop brought more than $11 billion to the economy in 2014”. 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"
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