A 1% Rise in Korean Wave Index Boosts Cosmetics Exports by 0.08%... 13% Cumulative Growth Over 15 Years

Culture & Tourism Institute Analyzes Real Transaction Data
"Proves Structural Impact, Not Just a Short-Term Phenomenon"

According to the data, a 1% increase in the Korean Wave (Hallyu) index based on video and music content export volume leads to a 0.082% increase in related consumer goods exports, a 0.073% rise in agricultural and food exports, and a 0.076% growth in cosmetics exports. Exports of seafood products and the number of inbound tourists to Korea also increased by 0.093% and 0.090%, respectively.

On-site at Olive Young Festa Japan 2026.

The Korea Culture & Tourism Institute released a report on the 20th titled "A Study on Estimating the Effects of Hallyu on Exports." The report developed a Hallyu index based on content export volumes and estimated its impact using a distributed lag model.

According to the findings, over the past 15 years, 13.14% of the annual average growth rate for related consumer goods exports can be attributed to the Korean Wave. For agricultural and food products, 20.77% of the growth was due to Hallyu, while seafood products saw a 16.21% Hallyu effect, and cosmetics recorded 7.19%. The increase in inbound tourists to Korea was driven by Hallyu by as much as 30.79%. This effect was particularly prominent in North America and Asia, but relatively modest in Europe and other regions.

This study empirically demonstrates that the impact of Hallyu is not a short-lived phenomenon. The distributed lag analysis shows that the effect works in a cumulative and complex manner even after a certain period, gradually accumulating through the stages of awareness, consideration, purchase, and repeat purchase. In essence, it has functioned as an economic force that changes consumption patterns themselves.

The Hallyu index grew from 240 million dollars in 2010 to 2.65 billion dollars in 2024, recording an average annual growth rate of 18.8% over 15 years. In the merchandise sector, the index reached 300 million dollars in 2024, up 26% from 2019. In the service sector, it increased to 2.36 billion dollars in 2024, an 18.3% rise from 2020.

Hwang Gyoik, head of the research institute, emphasized, "Since the Hallyu effect lasts for more than two years with an average lag of about one year, policies should be planned and evaluated from the perspective of mid- to long-term cumulative effects."

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