A 10% Increase in K-Content Exports Boosts K-Food by 166 Billion Won... Data Proves the Trickle-Down Effect

Korea Creative Content Agency: "K-Food, Gaining Wings with Content"

Agri-Food Sector Claims 13% of Ripple Effect in Other Industries

Concentration in Processed Foods and Food Service

"Active Marketing Is Essential"

Nongshim launched the Shin Ramyun global campaign last December by conducting large outdoor advertisements and on-site promotions at Piccadilly Circus in London, UK.

The frozen gimbap featured in the Netflix animation "K-Pop Demon Hunters" has sparked curiosity among overseas consumers, leading to a sell-out frenzy. The global Shin Ramyun advertisement campaign, fronted by the girl group Aespa, surpassed 200 million views in just 40 days, driving overseas sales.

The tangible impact of K-content on the actual sales of K-food has now been proven with concrete data. According to the report "K-Food, Gaining Wings with Content," published by the Korea Creative Content Agency on March 18, when exports of K-content increase by 10%, the production value of the agri-food industry rises by 166 billion won.

This economic ripple effect stems from the chain reactions that stimulate consumption in other industries. The average production inducement coefficient of the content industry is 1.757. This means that if demand for content increases by 1 billion won, it generates 1.757 billion won (1.757 billion won = 1 billion won x 1.757) in total national economic production. By sector, visual content with high immersive power—such as films (1.935), animation (1.930), and broadcasting (1.862)—demonstrates strong driving force.

If content exports increase by 10%, the total production value across all industries rises by 3.7881 trillion won. Of this, 66% is absorbed within the content industry itself. Excluding this, the ripple effect on other industries amounts to about 1.28 trillion won, and of that, the agri-food industry accounts for 13% (166 billion won). This represents an overwhelmingly large share as a single sector, surpassing manufacturing, services, and others.

The driving force behind this mutual growth comes from Korea's national brand competitiveness, which has reached a world-leading level. According to the UK-based Brand Finance, Korea's global soft power ranks 11th in the world this year. Heritage and media & communication ranked 9th and 10th, respectively, solidifying Korea's place in mainstream global culture.

K-dramas and K-pop lower psychological barriers to unfamiliar food cultures and prompt immediate purchasing behavior. According to a Netflix survey, 64% of respondents said they developed an interest in Korean culture after watching K-content. This interest helped drive K-food exports to 13.62 billion US dollars last year, a 5.1% increase compared to the previous year.

Promotional materials for the movie "K-Pop Demon Hunters" displayed at the GS25 convenience store in Terminal 2 of Incheon International Airport. Photo by Yonhap News

The ripple effect is concentrated in the processed food and distribution services sectors. Of the agri-food production inducement effect, as much as 63.4%—amounting to 105.2 billion won—occurs in agri-food-related processed product manufacturing and food service businesses, including restaurants and bars.

Fresh agricultural products are often blocked by non-tariff barriers such as sanitary and phytosanitary (SPS) measures. However, processed foods, which are easier to store and transport, have an advantage because intellectual property (IP) branding is possible. This is why collaborations between food products and webtoon or animation characters are so active both domestically and internationally. Consumers are purchasing not just food, but the cultural value bestowed by characters and stories.

The transition to a digital economy also has an impact. Thanks to the growth of e-commerce and delivery platforms, when exports in knowledge information, advertising, and content solution sectors increase by 10%, the agri-food industry respectively sees effects of 45.4 billion won, 29.4 billion won, and 21.1 billion won. Meanwhile, games have the highest production inducement coefficient (0.107) related to agri-food, but due to a lack of actual combined cases, the overall share remains small. This indicates that while the potential is greatest, it has not yet been fully leveraged. There are calls to move beyond passive strategies that rely on product placement (PPL) or the halo effect of the Korean Wave.

Jeon Jongseop, lead researcher at the Data Policy Team of the Korea Creative Content Agency, advised, "To ensure the continued expansion of K-food, it is essential to proactively plan high value-added products that align with global value consumption trends such as eco-friendliness and wellness. Aggressive marketing that actively utilizes game IPs—such as linking snacks with e-sports stadiums or in-game items—is also needed." He added, "At the government level, it is necessary to establish systems for joint branding planning and matching between content creators and food companies, thereby laying the institutional foundation for ecosystem convergence."

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