Seoul: TikTok is expected to contribute up to 40.6 trillion won (US$29.3 billion) to the South Korean economy by 2030, by promoting K-culture through its platform, the company said in its latest report released Wednesday.
According to Yonhap News Agency, the report, co-published by the global consulting firm Kearney, surveyed 3,300 consumers aged 16 to 49 across ten countries and provided a quantitative analysis of how the K-pop fandom created on TikTok has impacted the local economy and its major industries. "TikTok not only reinforces global interest in K-culture but has contributed greatly to the actual purchase of products related to K-culture," Chung Tae-hwan, a partner at Kearney Korea LLC, stated.
The survey revealed that 88.7 percent of users claimed TikTok helped them discover Korean culture, while 69.5 percent said their preference for it grew after using the platform. More than half, or 55.7 percent, indicated they have purchased Korean products after consuming content about Korean culture on TikTok. The economic impact of TikTok on South Korea is projected to grow by 29 percent from 31.3 trillion won this year to around 40.6 trillion in 2030, the report noted.
During a conference, an executive from TikTok's local office denied rumors about the company launching TikTok Shop, its in-app e-commerce feature, in South Korea this year. "We have received many questions about TikTok Shop, but we are not launching the feature this year," a communications executive from the company clarified.
The social media platform owned by China's ByteDance also reiterated its commitment to youth safety, asserting it does not view the global push to ban minors from social media as an existential roadblock to its business expansion. "There are no rules currently being enforced in a way that we actually feel or that requires us to take immediate action," Jung Jae-hoon, head of operations at TikTok Korea, mentioned. Jung added that the Korea branch has yet to detect major issues in the local market in terms of youth safety and vowed to address any potential gaps in this area.