South Korea is set to suffer billions in losses after members of the popular K-pop group BTS joined the South Korean army to perform their mandatory service.
According to a Hyundai Research Institute report in 2018, every year BTS managed to contribute more than $3.6 billion to the South Korean economy.
In fact, 13 tourists who visited South Korea in 2017 were due to the K-pop group while there were 800,000 foreign visitors in 2018.
Thus, BTS goods such as clothes and cosmetics exported from South Korea to consumers have made the economy generate as much as $1.1 billion.
The researchers also expect that BTS will be able to maintain its popularity after the group managed to earn 45 trillion won or $29.2 billion from 2014 to 2023, but now they have to join the military service until 2025.
In context, BTS is said to be pursuing solo projects and not becoming a band right after they complete their military service, but a BTS representative said that statement was simply a misunderstanding.
Meanwhile, shares of BTS's management company HYBE have lost a quarter of their value and fallen to their lowest level in two years since the group announced their hiatus.
HYBE shares also continued their decline of 2.5% after BTS announced that it will perform its military service.
Clarified, exemptions and deferrals of military service are only allowed for high-profile athletes or classical musicians, but South Korea revised the Military Service Act in allowing BTS to defer service until the age of 30.
