BTS’s free comeback concert in Gwanghwamun on March 21, 2026, created a textbook example of a city-center demand shock.
In short, it was an economic explosion concentrated in a small area over a short period. Tens of thousands of fans flocked to central Seoul, causing hotels in the Gwanghwamun and Myeong-dong areas to sell out instantly, with room rates doubling or even quadrupling. The Korea Culture & Tourism Institute has previously estimated that a single BTS concert can generate up to ₩1.22 trillion (about $830 million) in economic activity, and this event showed all the signs of meeting that potential.
This powerful effect was a perfect storm of several factors. First, there was a significant FX tailwind. The Korean won was weak against the US dollar, trading around ₩1,470. For international visitors, this meant their money went much further, encouraging higher spending on everything from K-beauty products to local food. Second, proactive government policy played a crucial role. The city of Seoul actively cracked down on price gouging by hotels and managed traffic and safety logistics, which increased tourists' confidence and made their stay smoother. This 'certainty of stay' helped turn online interest into actual bookings. Third, the concert was globally broadcasted live on Netflix. This expanded the event's reach far beyond those physically present, driving immediate online demand for co-branded merchandise and creating a seamless online-to-offline shopping experience.
Interestingly, the stock market's reaction was nuanced. It wasn't a case of all related stocks soaring. For example, Amorepacific, a major K-beauty company, saw its stock rise over 11%, directly benefiting from the surge in foreign shoppers. However, HYBE, BTS's agency, saw its stock decline slightly, possibly due to a 'sell-the-news' effect. Similarly, Hotel Shilla, which operates duty-free shops, also saw a small dip, reflecting ongoing shifts in tourist shopping behavior. This shows the economic benefits were highly targeted.
The 'BTS effect' from the Gwanghwamun concert was a powerful demonstration of how a cultural event can translate into measurable economic impact. It was a combination of star power, favorable currency rates, and supportive government action. The clearest winners were the consumer brands and hospitality businesses at the heart of the tourist activity, proving that the benefits, while substantial, were also very specific.
- Demand Shock: A sudden event that temporarily increases or decreases demand for goods or services.
- FX Tailwind: A situation where favorable foreign exchange rates provide a boost to the economy or a specific industry.
- Average Daily Rate (ADR): A metric used in the hospitality industry that shows the average revenue earned for an occupied room on a given day.