TikTok forecasts K-culture spending to double, hit US$143 billion by 2030
Compared to Japan, East Asia’s original heavyweight cultural exporter, South Korea’s output is still relatively small – but social media is helping to narrow the gap.
Content on ByteDance Ltd.’s TikTok is increasingly branching out to address topics like Korean food and K-drama. It’s driving engagement, memes and real-world sales of products. In one case, sales of Buldak noodles skyrocketed after rapper Cardi B reviewed them on video and amassed nearly 40 million views. That sent shares of the Korean noodle maker Samyang Foods Co. to a record high this year.
South Korean company Samyang Foods Co.’s shares hit a record last year as the popularity of its instant noodles skyrocketed. Photo: EPA-EFE
South Korea is best known for its exports of physical goods – from semiconductors to cars and appliances – and those still dominate in economic terms. Hallyu’s growing reach is having ripple effects and promises to augment the less quantifiable soft power of the country and its brands. It has already nurtured a new generation of multimillionaires from creative arenas like K-pop and webtoons.
In South Korea, TikTok’s audience is dwarfed by those of YouTube and Instagram. For all the app’s influence in spreading awareness about K-culture internationally, local users are gravitating to other platforms. But in the US and Southeast Asia, the research found that about 80 per cent of users have found Korean culture through TikTok.
“If you look at the success stories of global trends in K-content, they are often triggered by secondary content from Southeast Asian creators,” said Hyunho Son, general manager of global business solutions at TikTok Korea. “It shows that the Southeast Asian market is acting as a gateway and hub for global viral trends in K-content.”
The craving for Korean culture comes at a time when TikTok is expanding its e-commerce business through TikTok Shop in the US and across Southeast Asia. Korean products are one of the most promising segment for the social platform, as more than half of TikTok users have bought Korean food or cosmetic items directly on TikTok Shop, according to the company.
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Current global spending on Korean music – including concert tickets and content – is estimated to grow to about US$11.6 billion this year, while spending on Korean beauty products and food is also expected to grow to more than US$20 billion each, according to the report.
Momentum is likely to continue next year, with seven out of every 10 TikTok users in the US and Southeast Asia indicating their spending on K-food and K-beauty will increase next year, the report said.
