Key Takeaway:
South Korea’s cultural exports have surged to unprecedented heights, with the latest season of “Squid Game” solidifying its position as a global entertainment powerhouse. The “Korean Wave” or Hallyu, which includes TV series, movies, animation, and music, has generated approximately US$3.7 billion annually for South Korea through exports, consumer spending, and tourism. The economic impact of Hallyu is substantial and growing, with exports related to Korean cultural content and products reaching around US$14 billion in 2023. Online platforms have been pivotal in propelling Hallyu’s success, providing the infrastructure for widespread social interaction and enhanced connectivity.
South Korea’s cultural exports have surged to unprecedented heights, with the latest season of Squid Game solidifying the nation’s position as a global entertainment powerhouse. The dystopian drama, which critiques capitalism and extreme wealth disparity, captivated audiences worldwide, amassing a staggering 68 million views in its first week. Dominating Netflix’s global top ten and securing the number one spot in 92 countries, Squid Game Season 2 not only continued its predecessor’s success but also earned a Golden Globe nomination even before its December 26, 2024 release. This triumph is a testament to the enduring influence of the “Korean Wave,” or Hallyu, which shows no signs of slowing down.
The phenomenon of Hallyu extends beyond television series. Bong Joon-ho’s 2019 masterpiece Parasite made history as the first foreign-language film to win the Oscar for Best Picture, highlighting themes of greed and class discrimination. Meanwhile, K-Pop sensations like BTS have become global icons, generating approximately US$3.7 billion (£2.9bn) annually for South Korea through exports, consumer spending, and tourism. These successes are not mere coincidences but the result of strategic government policies aimed at enhancing South Korea’s global stature through cultural exports.
Initiated in 1993, South Korea’s government embarked on a mission to boost its international presence by exporting cultural products, thereby increasing the country’s “soft power.” This strategic shift complemented the nation’s rapid economic growth during the 1960s and ’70s, which was driven by an export-oriented strategy led by large family-run conglomerates known as chaebols. Previously dominated by semiconductors, automobiles, and consumer electronics from giants like Hyundai, LG, and Samsung, South Korea successfully diversified its export portfolio to include cultural goods by the late 1990s. Korean dramas initially gained popularity in China and neighboring countries, and over the past three decades, the allure of Korean pop culture has expanded to encompass movies, animation, and music on a global scale.
The economic impact of Hallyu is substantial and growing. In 2023, exports related to Korean cultural content and products reached around US$14 billion. This boom is supported by significant investments from international players, with Netflix alone committing US$2.5 billion to South Korea’s entertainment sector. Western studios are eager to tap into the lucrative market, recognizing the global appetite for Korean content as part of a broader “gold rush.”
South Korea’s cultural influence permeates various sectors, including beauty and cuisine. The global beauty market is projected to hit US$18 billion by 2030, with international tourists flocking to Seoul’s Myeong-dong district to purchase cosmetics from brands like Olive Young and Face Shop. Culinary delights such as kimchi have also gained worldwide acclaim, becoming a favorite among food enthusiasts and leading to the proliferation of Korean restaurants in major cities around the globe.
Online platforms have been pivotal in propelling Hallyu’s success, providing the infrastructure for widespread social interaction and enhanced connectivity. Iconic moments like the viral sensation of Gangnam Style in 2012, which became the first YouTube video to reach 1 billion views, and BTS’s record-breaking 2021 release of “Butter,” watched 108 million times in just 24 hours, illustrate the power of digital media in amplifying South Korea’s cultural reach. More recently, the 2024 collaboration “APT” by South Korean singer Rosé and American artist Bruno Mars, inspired by Korean drinking culture, has been streamed over 823 million times, further cementing Korea’s influence in the global music scene.
Research indicates that the online consumption of Korean cultural products fosters herding behavior—a social phenomenon where individuals mimic the actions of others—which in turn positively impacts South Korean tourism. Moreover, Hallyu serves as a source of national pride and confidence for South Koreans themselves. It has even been harnessed as a tool for political protest, with demonstrators using K-Pop hits and lightsticks during rallies to unify and energize participants, exemplifying the multifaceted role of cultural exports in both national identity and social movements.
The strategic policies implemented by the South Korean government, combined with innovative use of digital platforms and sustained creative output, have transformed the country’s cultural sector into a global juggernaut. Hallyu not only drives economic growth and tourism but also enhances South Korea’s international influence, securing its status as a leading cultural powerhouse. As Western studios continue to invest and global audiences remain captivated by Korean content, the Korean Wave is set to dominate the global cultural landscape for years to come.
