BTS started enlisting in the South Korean military in December 2022. This policy is called conscription. It requires all able bodied men in South Korea to serve in its military for at least 18 months. BTS announced a hiatus until 2025 in a "dinner party" YouTube video in June 2022. The band framed, or in my opinion, re-branded their break to focus on solo pursuits. The following day, investors dumped stocks of HYBE Label. They lost $1.7 billion of market cap in the first hour of trading. They really are the billion-dollar boyband.
As the group's oldest member Jin nears the age of conscription, there has been a conversation about exemption for BTS in recent years. Three days before Jin's 28th birthday, there was a revision in South Korea's Military Service Act. The "BTS Law" adjusted the age for military service of K-Pop singers from 28 to 30 years old.
Last October 2022, Big Hit/Hybe confirmed via Twitter that each BTS member would complete their mandatory military service. Jin started his service in December 2022.
BTS Military Service Impact on South Korea's Economy
The impact of BTS's military service goes beyond upset ARMY. It will have more economic consequences on top of the $1.7 billion that Hybe lost in stocks after the announcement. Physical and digital music revenue calculations show that BTS is the number #1 recording artist in 2020 and 2021. They have dozans of sold-out shows, Grammy nominations, and four tracks in the Billboard Top 10 Bestselling U.S. Digital Hits.
The success of BTS brought prosperity to the culture, economy, and industry of South Korea. It is known as the "BTS Effect." After Dynamite topped the Billboard Top 100 List, the Korean Culture and Tourism Institute found that they generated 8,000 jobs $439 million revenue for the South Korean economy. In 2019, a Hyundai research institute reported that BTS generated $3.9 billion in economic value yearly. That's 0.3% of the country's total GDP. $3.9 billion revenue is equivalent to 35 mid-sized companies.
South Korea tourism ranks among the top 60 countries worldwide. BTS brings in hundreds of thousands of tourists to South Korea each year. In 2017, 1 in every 13 visit said BTS was the reason for their travel.
The Future of BTS
The success of BTS and their influence moving forward remains to be seen. But all hope is not lost for the BTS ARMY. In a parliamentary session last August 2022, South Korea's Defense Minister said there is a way to give them the opportunity to practice and leave the country anytime if they have overseas concerts. For now, we the BTS ARMY have to rely on their 9 studio albums and 42 singles to keep us entertained.
(As an Amazon Associate, I earn from qualifying purchases.)
Sources: CNBC, Wall Street Journal, YouTube
No comments:
Post a Comment