Economic Ripple Effect of 61 Trillion Won... Samsung, Hyundai Motor, and Other Top 10 Domestic Groups Also Join In

2030 Busan Expo Hosting All-Out Effort
Production Induction Effect of 43 Trillion Won
Value-Added Induction Effect of 18 Trillion Won
Expected Effect of Enhancing Corporate Brand

Last June, Prime Minister Kim Boo-kyum is taking a commemorative photo with attendees at the 2030 Busan Expo bid business meeting. From the top left row clockwise: Lee Dong-woo, President of Lotte Holdings; Na Kyung-soo, President of SK; Lee In-yong, President of Samsung Electronics; Gong Young-woon, President of Hyundai Motor Company; Lee Bang-su, President of LG; Woo Tae-hee, Vice Chairman of the Korea Chamber of Commerce and Industry; Koo Ja-yeol, Chairman of the Korea International Trade Association; Moon Seung-wook, Minister of Trade, Industry and Energy; Prime Minister Kim; Kim Young-joo, then-designated Chairman of the Bid Committee; Park Hyung-joon, Mayor of Busan; Yoo Myung-hee, Head of the Bid Planning Group.
Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Choi Dae-yeol] The 'Registered Expo,' held once every five years, has a much greater ripple effect compared to other mega-events like the Olympics or the World Cup. This is because its basic hosting period is six months long, and it significantly influences changes in the industrial structure of the region, including attracting global companies before and after the event.

Busan City anticipates that if it hosts the 2030 World Expo, approximately 50.5 million people from around 200 countries will visit during the six-month event period. The production inducement effect from building local infrastructure, creating MICE (Meetings, Incentives, Conferences, and Exhibitions) jobs, and retail and wholesale employment alone is estimated at 43 trillion KRW. Adding the mid- to long-term value-added inducement effect of 18 trillion KRW, the total ripple effect is expected to exceed 60 trillion KRW.

This level is incomparable to the economic impact of the '2012 Yeosu Expo,' which was held as a medium-scale 'Recognized Expo' between Registered Expos. According to an analysis of the ripple effects of the 2012 Yeosu World Expo published in the Korean Economic Geography Journal by Professor Lee Jung-rok of Chonnam National University and others, the production inducement effect within the Yeosu region was 8.5783 trillion KRW, with value-added and income inducement effects reaching 4.5 trillion KRW. The mobilization of human networks by Korea's top 10 conglomerates, including Samsung, Hyundai Motor, SK, and LG, as well as major economic organizations, for the 2030 World Expo bid is based on this background.

The brand enhancement effect for participating companies is also tremendous. For example, companies such as Hyundai Motor, Samsung, LG, SK Telecom, Lotte, GS Caltex, and POSCO, which participated in the 2012 Yeosu Expo, enjoyed significant promotional benefits as millions of visitors came to their corporate pavilions. Given that the 2030 World Expo will be on a scale far beyond that of the Yeosu Expo, even greater brand effect creation is expected. The business community, led by the top 10 conglomerates, plans to fully mobilize efforts focusing on the most competitive sectors of each company's global business activities to secure the hosting of this Busan Expo.

Unlike in the past, Expos are increasingly viewed as platforms to solve problems facing humanity and to gather global wisdom. Early Expos strongly served as stages to introduce contemporary innovative products or inventions such as the steam engine (1851 London), elevator (1853 New York), automobile (1885 Antwerp), and wireless telephone (1970 Osaka). However, as advanced technologies have shifted to specialized industry exhibitions, Expos now clearly focus on issues of common human welfare. Companies, as members of society and with ESG (Environmental, Social, and Governance) becoming a hot topic in the global industry in recent years, are expected to collaborate on creating better societies and showcase the results.

This content was produced with the assistance of AI translation services.