KESPA Highlights the Economic Power of Esports Events in South Korea

Why It Matters

The findings reveal esports as a major economic driver in South Korea, justifying policy support and investment. Targeted tax incentives could alleviate financial pressures on teams and accelerate industry expansion.

Key Takeaways

• New MEEI model quantifies esports economic impact
• 2023 LoL Worlds generated 740bn won production effect
• Player salaries consume 70% of team budgets
• Tax credit proposals aim to attract corporate investment

Pulse Analysis

South Korea has long been a powerhouse in competitive gaming, but quantifying that influence has remained elusive. KeSPA’s new Multi‑layered Esports Economic Impact (MEEI) model bridges that gap by integrating digital viewership data, advertising spend, and ancillary tourism metrics. By moving beyond traditional sports accounting methods, the model captures both tangible revenues and intangible brand value, offering stakeholders a clearer picture of how tournaments ripple through hospitality, retail, and media sectors.

The study’s headline figure—740 billion won in production inducement from the 2023 League of Legends World Championship—illustrates the scale of modern esports events. Compared with earlier estimates of roughly 200 billion won, the revised number underscores the multiplier effect of global fandom, streaming platforms, and merchandise licensing. Domestic showcases such as the 2025 LCK Finals and T1’s Homeground events also delivered multi‑digit‑billion‑won impacts, reinforcing the sector’s contribution to Korea’s broader digital economy and its appeal to international sponsors.

Despite these gains, the industry faces mounting cost pressures, with player salaries now accounting for more than 70% of team expenditures. KeSPA’s policy recommendations—expanded tax credits for operating costs, R&D incentives, and IP‑focused deductions—aim to lower barriers for corporate entrants and diversify revenue streams. If adopted, these measures could stabilize team finances, encourage long‑term investment, and position South Korea as a benchmark for sustainable esports growth worldwide.