BTS Sparks Predicted 'Explosion' in South Korea's Economy by 2040
Jakarta, CNBC Indonesia - The economic impact of K-pop group Bangtan Sonyeondan (BTS) and their global fanbase, ARMY, is expected to grow significantly over the coming decades. Fan spending could potentially boost South Korea’s gross domestic product (GDP) by 0.35 percentage points by 2040, according to a report by South Korean securities firm NH Investment & Securities. The report states that fandom culture is not a short-term phenomenon but a sustained economic force.
The analysis comes amid high expectations for BTS’s upcoming Busan concert, which is projected to stimulate regional economic activity. The report notes similar phenomena with fanbases of The Beatles and Michael Jackson for Generation X, and Beyoncé and Taylor Swift for millennials and Gen Z.
Economic impacts of these fanbases peak when fans enter their 30s and 40s, when purchasing power increases. NH Investment & Securities researcher Jung Yeo-kyung explained that fan consumption patterns typically evolve in three stages.
The first stage involves spending on music streaming, albums, and merchandise. This then expands to Korean products such as cosmetics, food, and fashion.
‘In the final stage, fandom translates into tourism demand. Fans travel directly to South Korea and spend on hotels, restaurants, shopping, and transportation,’ Jung said, quoted by Korea JoongAng Daily on Monday, May 25, 2026.
The report’s projections are based on estimates from Hyundai Research Institute, which indicated around 800,000 BTS fans visited South Korea in 2018. This figure represented approximately 5% of the global ARMY population of 20 million at the time.
NH Investment & Securities then applied similar assumptions to an estimate of 86.5 million BTS fans aged 10-29 in developing Asian and American countries. Assuming 5% of this number visit South Korea, the country could see an additional 4.3 million tourists annually.
‘Currently, 84% of global ARMY members are teenagers and in their 20s, so their purchasing power remains relatively limited,’ Jung said.
‘However, as they enter their 30s and 40s and start earning, their spending is likely to shift towards tourism in Korea,’ he added.
Jung estimated that tourism revenue from BTS fandom could reach $3.3 billion to $13.4 billion annually, potentially adding 0.1 to 0.35 percentage points to South Korea’s annual GDP by around 2040.
The report also compared this phenomenon to the ‘J-imprinted generation’ in Korea, who grew up with Japanese pop culture. This generation, familiar from childhood with Japanese works like Slam Dunk, Pokémon, and One Piece, now has high purchasing power and actively travels to Japan.
Data shows South Korean visitors to Japan reached 9.46 million last year, accounting for 22% of all foreign tourists to Japan. According to Jung, cultural preferences formed in adolescence can translate into major consumption waves 20 to 30 years later.
He added that K-pop fandom-driven consumption could become a new ‘structural force’ for South Korea’s economy, particularly to support domestic consumption amid slowing economic growth and an ageing population.