"When K-Content Exports Increase, Consumer Goods Exports Nearly Double Together"

Export-Import Bank Overseas Economic Research Institute Report on the Economic Impact of K-Content Exports

[Asia Economy Reporter Yoo Je-hoon] A study has found that when exports of K-content such as games and movies increase, exports of consumer goods like cosmetics and processed foods nearly double in tandem.

According to the report "Economic Effects of K-Content Exports" published on the 1st by the Korea Eximbank Institute for Global Economic Research, when K-content exports increase by 100 million USD, consumer goods exports also increase by 180 million USD. This result comes from a regression analysis of South Korea's K-content export amounts and consumer goods export data?including cosmetics, processed foods, and IT devices?from 2006 to 2020.

The institute analyzed that the spread of K-content such as K-pop and dramas has raised the favorability toward Korean products, leading to an increase in Korean consumer goods exports.

Regionally, the effect was stronger in non-Chinese markets than in Chinese markets. Among K-content, K-pop, broadcasting, and movies with strong Hallyu characteristics had a higher effect on driving consumer goods exports. In the consumer goods sector, cosmetics and processed foods were most influenced by K-content.

Furthermore, when K-content exports increase by 100 million USD, the production inducement effect?including the increase in consumer goods exports?is estimated at 510 million USD (approximately 600 billion KRW), and the employment inducement effect is estimated at 2,892 jobs.

It was analyzed that 100 million USD of K-content exports drive 180 million USD of consumer goods exports, and production inducement amounts of 170 million USD (201.1 billion KRW) and 340 million USD (398.7 billion KRW) occur in the production processes of K-content and consumer goods, respectively.

Also, 1,625 jobs are induced in the consumer goods production process and 1,357 jobs in the content production process, resulting in a total employment inducement effect of 2,982 jobs from a 100 million USD increase in K-content exports.

Kim Yoon-ji, senior researcher at the Institute for Global Economic Research, explained, "With the rapid development of various platform services such as OTT, the environment of the content industry is changing quickly, and the global status of K-content like K-pop and K-dramas is greatly rising." She added, "Although K-content exports to China have stagnated since the ban on Korean content, exports of K-pop, broadcasting, and movies to non-Chinese markets have increased significantly, overcoming the China-centric growth and successfully expanding the market." Researcher Kim also stated, "As confirmed in this analysis, it is necessary to actively utilize K-content in pioneering export markets for consumer goods, where culture and taste are important."

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