The first statistical analysis of the correlation between consumer goods exports and cultural contents exports was announced on March 29.

The study titled “Analysis of Korean Cultural Exports Impacts and Financial Support Measures” was conducted by the Overseas Economic Research Institute of the Export-Import Bank of Korea. According to the study, for every USD 100 in cultural goods exported, consumer goods exports rose by USD 412.

The conclusion was based on regression analysis of data regarding cultural goods exports and consumer goods exports to 92 nations from 2001 to 2011.

A reason for such a correlation is that the widespread appeal of Korean TV shows and movies has instilled a positive image of Korean products and increased buyer preference for Korean goods and services such as mobile phones.

This latest study is significant in that it is a quantitative analysis of how much an improved image of Korea through cultural contents exports increases exports of consumer goods.

Among consumer goods, exports of IT products such as mobile phones and home appliances increased the most in terms of value with an average rise of USD 395 for every USD 100 of cultural contents exported.

However, in terms of the proportion of increase, exports of processed foods ranked first, apparel ranked second, and IT products* ranked third.

* A 1% increase in the export of cultural contents correlated to a 0.07% increase (USD 31) in processed foods, 0.051% increase (USD 35) in apparel, and 0.032% increase (USD 395) in IT products.

The study indicated regional differences in export preference.

In Asia, Korean music exports such as CDs and tapes had a high demand-pull effect on exports of cosmetics while exports of TV shows and movies increased exports of IT products.

In Latin America, however, Korean music exports stimulated exports of IT products such as mobile phones and computers.

A representative of the Bank commented, “Although exports in the culture and multimedia contents industries may not appear to have direct economic effects, this study shows that there are substantial secondary effects. As such, we will make efforts to increase multi-faceted support for the export of K-Pop and other cultural contents.”

The Bank will release the “Analysis of Korean Cultural Exports Impacts and Financial Support Measures” on May 30.

Korea Eximbank actively supports the cultural contents industry. The bank has provided KRW 3 billion to Pan Entertainment, a production company of highly popular TV dramas including Winter Sonata, the Sun and the Moon, and Man from the Equator.