How Much Is HYBE Paying the Government for the BTS Concert Venue? "Total Cost Under 100 Million Won"

Usage Fees Total About 90 Million Won, Raising Concerns Over Low Cost
Massive Economic Value Expected
"Intangible Benefits Will Be Even Greater"

It is estimated that HYBE, the agency of BTS, paid less than 100 million won for the use of public spaces in downtown Seoul for the BTS comeback performance on March 21.

According to the Seoul Metropolitan Government's "Ordinance on the Use and Management of Gwanghwamun Square," as of March 21, the usage fee for Gwanghwamun Square is set at about 10 to 13 won per square meter per hour. This relatively low fee reflects the fact that the space is a public area open to all citizens, making it much cheaper than large-scale concert venues. Since HYBE reserved Gwanghwamun Square for one week, from March 16 to 22, for the BTS performance, the total usage fee based on area slightly exceeds 30 million won.

A related video is playing on an electronic billboard at Gwanghwamun Square in Jongno-gu, Seoul, on the 20th, one day before the comeback performance of the group BTS. Photo by Yonhap News

HYBE also obtained permission to film and use Gyeongbokgung Palace and Sungnyemun for the event. As a result, the fee to be paid to the Cultural Heritage Administration was calculated at 61.2 million won. This amount takes into account the loss of admission revenue on the day of the event. On the day of the performance, Gyeongbokgung Palace, Deoksugung Palace, and the National Palace Museum of Korea will all be closed to the public. In total, the cost borne by HYBE for using public spaces and cultural heritage sites amounts to about 90 million won.

For safety management on the day of the event, more than 10,000 people will be deployed, including approximately 6,700 police officers and about 3,400 personnel from the Seoul Metropolitan Government, local districts, and fire authorities. Some have criticized that the cost paid by HYBE is excessively low, considering the scale of public manpower mobilized.

On the other hand, while the direct cost of utilizing public spaces is low, many point out that the economic impact will be much greater when factoring in the indirect benefits such as enhancing the city's brand value and boosting tourism and consumption. Bloomberg estimated that this free concert at Gwanghwamun Square could generate an economic effect of about 177 million dollars (approximately 265 billion won) in a single day.

There is also analysis that this concert and tour could have an impact comparable to so-called "Taylornomics," a term describing the massive economic effect of American pop star Taylor Swift's performances and activities on local economies. The upcoming BTS world tour is also expected to create significant economic value.

The government has also expressed high expectations. Deputy Prime Minister for Economic Affairs Koo Yooncheol stated ahead of the concert, "We expect the economic value to reach several trillion won, and the intangible effects will be far greater than that."

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