Yes it does.
Why? Very simple, on global charts you basically will NEVER have longevity with solely physical sales nowadays, not even the biggest fandoms are able to keep their faves for so long with physicals, it is impossible.
We are in the streaming era like it or not. Even in Japan (the second biggest music market) that have such a big physical sales market in their Hot 100 charts we have songs with physical release that reach top 10 and the follow week either drop 10-20 spots or just free fall if they don’t have enough streams and digital sales, we have many examples of that and oh surprise! It’s mostly the ones with big fandoms including kpop Japanese singles.
Just to take a look at Billboard 200, the albums in the top 10 are basically staying that high thanks to SEAs (Stream Equivalent Album). Every single time I see a kpop group debut more than 75% (sometimes even 90% it is that bad) of their total units are from physical sales having poor SEA and TEA (Track Equivalent Album) EVERY SINGLE TIME.
Kpop labels need a reality check because they really only seem to care about fans buying and buying albums and if they want 4th gen or whatever to take over specially US with physical sales dying and streaming taking over is not going to happen.