The South Korean government's large-scale K-Pop concert project, 'Phenomemon,' has come under scrutiny during a national audit, raising questions about the legitimacy of its economic impact estimates. Critics pointed out that an estimate exceeding 1 trillion won was communicated before a formal research contract was established, serving as a basis for project promotion and budget allocation.
During the national audit on October 14, Rep. Bae Hyun-jin of the People Power Party questioned Hwang Kyo-ik, the director of the Korea Culture and Tourism Institute, about the reliability and timeline of the economic impact estimates for the Phenomemon project.
According to materials presented by Rep. Bae, the Cultural Exchange Committee shared the Phenomemon project plan with the Korea Culture and Tourism Institute on June 24. The institute completed its review and research team formation by June 30 and signed a formal contract on July 14.
Rep. Bae raised concerns about the timing of the economic impact estimate, which was communicated to the Cultural Exchange Committee on July 13, just one day before the contract was signed. The research project is set to conclude on November 11.
"How could an estimate of 1 trillion won be provided before the research contract was even signed? The research is still ongoing," Rep. Bae asked.
On July 27, during a press briefing announcing the Phenomemon project, the Cultural Exchange Committee cited the Korea Culture and Tourism Institute's data, projecting a total of 520,000 visitors and 200,000 foreign tourists, resulting in an estimated economic impact of about 1 trillion won.
Rep. Bae questioned, "Did the Cultural Exchange Committee promote the project with a figure of 1 trillion won when the research was not even completed?"
Concerns were also raised regarding the basis for the 1 trillion won estimate. Rep. Bae noted that the institute assumed a total of 520,000 attendees at performances held over six days in Goyang and Changdong, applying the per-person economic impact estimated from past BTS concerts to derive this figure.
In response, Director Hwang stated, "This was provided as preliminary data for planning by the Cultural Exchange Committee. It is a provisional estimate."
Addressing the criticism of the estimate's rushed nature, Hwang explained, "The institute sometimes provides provisional estimates when conducting various studies as needed. The final report will be available on November 11, and I hope you will review it in detail then."
Rep. Bae pointed out that the project is moving forward with budget allocations based on a figure that was communicated before the research was completed.
During the discussion, Rep. Bae compared the academic backgrounds of past institute directors with Hwang's credentials, raising questions about the professionalism in managing the organization.
Hwang responded, "I may not be a researcher, but I can be considered a field researcher. I will work hard to ensure that my work is validated through results."
* This article has been translated by AI.
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