Baseball's economic ripple effect: record fans and regional spending

Kia Tigers players celebrate after beating the Samsung Lions 7-5 in Game 5 of the Korean Series at Kia Champions Field in Gwangju, Monday. Korea Times photo by Shim Hyun-chul

On Monday morning, Lee Yu-ri happily jumped on the train that would take her to Gwangju. She took a day off from work so she could watch the final match featuring her home team, the Kia Tigers, going up against the Samsung Lions. She said she couldn't miss this historic match, and has no regrets, especially since Kia secured victory in this regular season of the Korea Baseball Organization (KBO).

"I was born and raised in Gwangju. I should have supported this team from the day I was born, but I wasn’t an avid fan before. The influx of other women lowered my barrier to professional baseball as well," the 28-year-old office worker living in Seoul said.

The Korea Times received her spending breakdown for the match. She spent about 150,000 won ($108.39) on transportation, including a round-trip train ticket between Seoul and Gwangju, around 60,000 won on food and beverages and 30,000 won on a ticket.

"I can't wait for the next season in the stadium," Lee said.

This is the first year that the KBO League has exceeded 10 million spectators, reflecting a 34.4 percent increase from the previous year. According to BC Card, the enthusiasm was driven by young women in their 20s traveling to attend games.

The phenomenon caused another unexpected impact: they also contributed significantly to boosting local businesses. Spending by visiting fans at stores near stadiums increased by 57 percent compared to the same period last year, with a remarkable 127.4 percent increase in spending from women in their 20s.

At Kia Champions Field in Gwangju, for instance, the 73 home games this year generated an estimated direct economic impact of around 200 billion won, the Sports Science Institute of Chosun University reported. When including the added value and indirect effects, the total economic ripple effect is analyzed to exceed 400 billion won.

Given a 2011 study by Hanyang University, which estimated that a total 6.6 million spectators generated an economic impact of 1.18 trillion won in the country, the economic impact for 2024 is projected to be significantly larger.

Can the unprecedented popularity also translate to financial gains for the baseball teams, struggling with weak financial structures?

While it may provide some support, many argue that significant improvements are unlikely.

Last year, the total revenue of the 10 teams amounted to 615 billion won, equivalent to the scale of small and medium-sized enterprises. Four teams — Kia Tigers, LG Twins, KT Wiz and Hanwha Eagles — reported operating losses. Of these four, three, excluding KT Wiz, are even in a state of complete capital erosion.

Many attribute Korea's low per capita spending at baseball games, at about 15,000 won, to a weak revenue stream. The per capita spending in the U.S. exceeds $100. Additionally, all stadiums in Korea are rented, requiring regular payments to local governments. Even revenues from in-stadium concession stands are shared.

Without financial backing from parent conglomerates, sustaining operations is nearly impossible for the teams. The teams primarily function to enhance the brand image and symbolic value of their parent companies, which in turn absorb the teams' financial losses.