BTS military enlisment & its impact in Korean economy
BTS, one of the most famous K-pop bands in the world, announced their enlistment in the mandatory military service in November 2022. Since then, the media have shared their thoughts about it and show their important influence in the country's economy.
BTS (shortened version of Bangtan Sonyandan) is a Korean K-pop group that debuted in 2011. They became a worldwide band icon, breaking records and making history in the music industry. So far, the band’s announcement to confirm their military enlistment has shocked everyone. Several posts and tweets expressing sadness went viral in social media. Moreover, the impact of the band was not just in the music field. The Korean economy suffered losses following the news. This event attracted economic experts' attention, producing various approaches about BTS influence.
Mandatory Mitary service
In South Korea it is mandatory for all male citizens to serve between 18 to 21 months of military training. The basis of the conscription (formal term to refer to military enlistment) in the country is the Constitution of the Republic of Korea since 1946. Since South Korea is still at war with its neighbors from the north, they have an active military movement. Therefore, every young man between the ages of 18 and 35 must enlist to fulfill this obligation. The first member of the band to enlist was the older one, Kim Seokjin (Jin), who went to a preparatory military camp the last 13th of December 2022. The hashtag #TakecareJIN did not wait, and social media was flooded with positive comments towards the artist and his respective partners.
Like this, each member of BTS should enlist in the army and stop their music activities for a while. However, the impact of this “break” affects the Korean national income.
As a worldwide superpower, BTS contributes 0.3% to the national economy, which is comparable to Korean Air. The band is more than just a group of musicians, they are also the public face of a business environment. They undoubtedly as multimillionaires, charitable ambassadors & national treasures, are the reason why one in every 13 tourists travels to South Korea.
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In 2018, some researchers established the contribution of the band in the Korean economy. Stipulated around 3.6 billion a year similar to 26 mid-size Korean companies. The numbers have increased since that time. According to the most recent estimate of their national economic contribution, which is around $5 billion annually, analysts now anticipate that the group has contributed a total of around $29.4 billion to South Korea's GDP since 2014.
Moreover, hearing the enlistment decision of the band unleashed consequences that nobody would ever predict. After the news, shares of their company HYBE -one of the biggest entertainment agencies in the country- lost a fourth of their worth as they fell to their lowest point in two years. They decreased once more by another 2.5% after conscription was made public.
However, the company's sales won't stop. It will be extremely beneficial for members to engage in their own activities, release previously shot content and photobooks, and sell older albums. Even though, with the main moneymaker away, the key (for HYBE) will be how much sales are created from new enterprises and to keep the Korean economy afloat.
What many do not realise is the impressive contribution that the band had in the national economy. The emergence of BTS has occurred against the backdrop of the Korean Wave or “Hallyu”, a global phenomena which has seen the explosion of Korean popular culture ripple all over the world over the last ten years.
The group has stated that they will reunite in 2025 after serving their terms in the military. Even after a two or three-year absence, their return to popularity will undoubtedly be eagerly awaited by their fans, supporters, and financial backers.
