TikTok-Fueled K-Culture Consumption Estimated at KRW 10.75 Trillion, Set to Reach KRW 13.92 Trillion by 2030

The amount of spending on related products and services this year that is estimated to have been driven by activities involving exposure to and consumption of K-culture content on TikTok was KRW 10.75 trillion.

This consumption was shown to spill over into content-related sectors such as cosmetics, food and tourism.

TikTok and Kearney released a joint research report on the 26th titled "K-Culture on TikTok: Driving Global Economic Impact." The report analyzed six sectors: K-pop, K-media and intellectual property (IP), K-beauty, K-food, K-fashion and K-tourism.

The report estimated the potential scale of related consumption in 2030 at KRW 13.92 trillion, reflecting expansion in spending by existing K-culture consumers, conversion of current non-consumers and spending by future new TikTok users. That is KRW 3.17 trillion more than this year, and the 2030 estimate is a potential figure based on assumptions. The photo shows the TikTok logo.

The survey was based on an online poll conducted in July of 3,300 consumers aged 16 to 49 across 10 countries, including the United States, the United Kingdom, Japan and Indonesia, with 330 respondents in each country. The share of TikTok's contribution to consumption was calculated based on survey results and weights by the degree of content discovery and engagement. The economic impact was then estimated by factoring in the number of consumers and spending levels by country and sector.

In the survey, 88.7% of respondents said TikTok helps them discover K-culture, while 69.5% said TikTok contributes to increasing their interest in and preference for K-culture. In addition, 55.7% of respondents said they had spent on related products and services after encountering K-culture content on TikTok.

Based on this, additional spending projected through 2030 was put at KRW 3.17 trillion. Of that, KRW 1.68 trillion was estimated as the increase in spending by existing K-culture consumers, reflecting purchase frequency, product categories and per-capita spending. The remaining KRW 1.48 trillion was presented as the scale of spending conversion among current K-culture non-consumers and future new TikTok users.

The report said K-beauty showed the largest sector-specific consumption effect. The report's estimate of the direct economic impact related to K-beauty in 2030 was KRW 3.27 trillion. K-food and K-tourism followed in terms of consumption impact.

This reflects a trend in which interest in K-culture content leads to greater consumption of cosmetics, food and tourism-related products and services. The report also calculated the domestic industrial spillover effects of such related consumption.

The calculation is based on the portion of TikTok-related consumption attributable to domestic companies and industries. The input data used were industry-specific production and employment inducement coefficients from the Bank of Korea's 2023 Input-Output Tables (extended tables). Based on this, the domestic production inducement effect in 2030 was estimated at KRW 26.72 trillion.

The employment inducement effect was put at 118,865 people. The production inducement effect refers to total output generated directly and indirectly in domestic industries through related consumption. The employment inducement effect is a figure that converts the scale of direct and indirect jobs supported by that consumption into industry-specific coefficients.

Source: IT DAILY · Kim Byung-joo
Original: https://www.itdaily.kr/news/articleView.html?idxno=241219

References

• https://www.itdaily.kr/news/articleView.html?idxno=241219