TikTok announced that the amount of compensation for domestic content creators has nearly doubled in the four months since the expansion of its Creator Rewards Program (CRP). The platform is also positively impacting the consumption of K-content and related products, projecting an economic effect of 10 trillion won this year and over 40 trillion won by 2030.
On August 26, TikTok held a press conference titled 'K-Culture on TikTok' at the Eliana Hotel in Seoul, where it unveiled a report titled 'K-Culture on TikTok: Driving Global Economic Impact,' conducted in collaboration with global management consulting firm Kearney.
Since expanding the CRP in Korea on April 1, the number of daily uploads of content longer than one minute has increased from 75,000 to 143,000, a rise of over 90%. During the same period, the amount of Korean-language content produced by creators with over 10,000 followers also grew by 62%. The increase in longer content has led to a shift in the format of Korean-language content on TikTok, expanding to include longer and long-form videos.
Jung Jae-hoon, head of TikTok Korea, stated, "We are investing in creating an ecosystem where Korean creators can produce better content and continue to grow. This investment is already leading to tangible changes."
A survey conducted by TikTok among 3,300 consumers aged 16 to 49 in ten countries, including the U.S. and the U.K., found that 88.7% of users believe TikTok helps them discover K-culture. Among them, 61.4% reported that engaging with related content increased their intent to spend, and 55.7% had purchased related products through TikTok Shop after encountering the content.
Kearney analyzed that K-culture has entered a 'K-Culture 4.0' phase, characterized by the spread of short-form and user-generated content. This follows earlier phases: 1.0, which was broadcast-centric; 2.0, driven by fandom and social media; and 3.0, which popularized K-culture through global OTT and streaming platforms, leading to changes in consumption patterns.
In the 4.0 phase, consumption has expanded beyond content itself to include purchases of cosmetics, food, and travel to Korea. The report quantifies the economic impact of K-culture, which has previously been assessed based on popularity and recognition, in terms of consumption, production, and employment.
According to the report, the direct consumption attributed to TikTok's contribution to K-culture is estimated at about 10.75 trillion won this year, with projections of approximately 13.92 trillion won by 2030. The total economic impact, including indirect effects on domestic production and employment, is expected to increase from 31.37 trillion won to 40.64 trillion won, a rise of about 29% over the same period.
By industry, the direct economic impact of beauty is projected to be the largest at 3.27 trillion won by 2030. Tourism is expected to see the highest growth rate, with a 44% increase compared to 2026, while food is analyzed as the sector with the greatest production-inducing effects.
TikTok explained that its TikTok Shop, which directly connects content to product purchases, can help increase conversion rates. However, this service is not yet available in Korea.
Jung Jae-hoon emphasized, "This report shows that TikTok is contributing to the global spread of Korean culture and creating substantial economic value beyond being just a content platform. We will support the growth opportunities created by K-culture alongside creators, users, brands, and the entire Korean industry."
* This article has been translated by AI.
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