When Korean Wave (Hallyu) content exports increase by $1 million, exports from related industries such as cosmetics, food, and tourism are projected to rise by $202 million. The growing popularity of K-content abroad significantly boosts demand for Korean products and tourism.
The Korea Creative Content Agency (KOCCA) published a report on July 9 analyzing the economic impact of the Hallyu industry on the domestic economy. The report, titled 'Economic Effects of Hallyu Industry Exports,' was directly contributed to by KOCCA CEO Kim Yoon-ji and examines export data from six regions, including China, Japan, Southeast Asia, North America, and Europe, from 2006 to 2024.
The analysis found that a $1 million increase in Hallyu exports would lead to a $202 million increase in exports from related industries. As K-content consumption rises, familiarity with Korean culture increases, resulting in economic benefits through related product consumption and tourism demand.
In Hallyu exports, gaming accounted for the largest share at 64.3%. Music, centered around K-pop, showed an average annual growth of 29.7%, while comics, boosted by webtoons, recorded an average annual growth of 26.3%.
Tourism represented the largest share among related industries, with cosmetics showing the fastest growth rate at 21.3% annually. Notably, cosmetics exports have expanded from the Chinese market to North America and Europe, illustrating the economic influence of Hallyu across various industries. Additionally, content exports are expected to reach $14.9 billion by 2025, making it the 12th largest export category in South Korea.
The Hallyu industry has also positively impacted the domestic economy. A $1 million increase in Hallyu exports is estimated to generate a production inducement effect of $570 million (approximately 782.4 billion won). This includes about 234.1 billion won ($170 million) from the content production process and approximately 548.3 billion won ($400 million) from related industries.
The employment inducement effect from Hallyu exports is estimated at a total of 3,389 jobs, with 1,251 jobs generated in the Hallyu production process and 2,138 jobs in related industries.
Kim Yoon-ji stated, “This analysis confirms that the ripple effect of the Hallyu industry (K-content) positively impacts the real economy, including related industries. We will continue to contribute to enhancing the economic and cultural value of K-culture through research and analysis between Hallyu and related industries.”
The report, KOCCA Focus No. 214, is available for free on the KOCCA website.
Kim has researched content exports and corporate growth at the Export-Import Bank of Korea's Economic Research Institute since 2009 and was appointed as KOCCA CEO in June. Her major research and publications include 'Economic Effects of K-content Exports' and 'Hallyu Economics.'
* This article has been translated by AI.
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