BTS Military Service’s Impact on South Korea’s Economy
The popular boy band BTS dominates the South Korean entertainment industry The most recent announcement that their members will participate in mandatory military service has perturbed members of the band’s figurative “army.”
Since their debut in 2013, BTS has become the face of Korean pop’s global influence. Their longevity has been proven by statistics from 2020 and 2021, in which they were consecutively the world’s best selling artists.
BTS’s management company, the Hybe Corporation, relies heavily on the seven members’ output. The 880 billion won generated by BTS, roughly $615 million USD, accounted for nearly 70% of Hybe Corporation’s 1.3 trillion won revenue in 2021.
By itself, the band is one of South Korea’s largest companies.The Hyundai Research Institute estimates that the boyband’s average annual production impact is about 4.1 trillion won, the equivalent of 3.1 trillion USD. Average annual production impact is a metric that does not only deal with direct revenue from the band, but also with indirect economic trends such as tourism. On that note, the same study revealed that 1 in 13 of South Korean tourists had some ties to the South Korean boy band, coming to the country because of their fandom.
In total, 2020 saw BTS comprise nearly 0.3% of the entire country’s Gross Domestic Product of 1.64 trillion USD. Cumulatively, between the years of 2014 and 2023, BTS is projected to have contributed $29.1 trillion dollars to the South Korean economy.
Despite the economic revenue generated by the band, BTS members will serve eighteen months in the military, with plans to return in 2025. While exceptions in South Korean conscription law special exist for athletes, classical and traditional musicians and ballet and other dancers who have won top national prestigious competitions, BTS remains committed to their military service. The South Korean government has additionally remained steadfast in each of the seven members serving the 18–21 months of military service required by all able-bodied men.
South Korea’s government sees the service of the members as a commitment to an equitable mandatory conscription system. Lee Ki Sik, the commissioner of the Military Manpower Administration, told lawmakers that it was “desirable” for the band to serve in the military, mirroring comments by Defense Minister Lee Jong-sup and Culture Minister Park Bo Gyoon.
Previous attempts in South Korea to excuse mandatory service for the nationally prestigious have caused chaotic discourse over draft dodging. Those exempted from the draft only have to serve three weeks of basic training in the military, in addition to 544 hours of volunteer work and continued service in their professional fields for 34 months. South Koreans remain divided on the topic of mandatory service for the band. In a recent survey conducted by the Associated Press, 61% of Koreans approved of an exemption for the band in order to continue performing.
It’s been speculated that BTS’s role in committing to military service is an act of publicity for the South Korean military, which has run low on service manpower due to dropping birth rates in the country. Most recently, the nation has reported the lowest fertility rate ever, at 0.81 in 2021.
BTS is set to reconvene around 2025, according to BIGHIT Music. Perhaps the country sees their widely publicized participation in the South Korean military as a wiser investment in the nation than the trillions of won the band has already contributed with their music.
