South Korea’s Creative Economy: Investing in Influence

A mini flag of South Korea stands on a map of the country.

I’ve recently read (and then re-read because of its whimsical approach to cultural studies) The Birth of Korean Cool by Euny Hong. While not a traditional beach read, it danced between so many genres of popular Korean culture, I might as well have been watching VH1’s Behind the Music on a lazy summer afternoon. 

My devouring of the book coincided with my colleague, Whitney, excitedly pushing me toward this summer’s blockbuster Netflix hit, K-Pop Demon Hunters (which is an utter delight for kids young and old). While the music was clever, the story bouncy, and the animation unique, what really struck us both was the sheer joy emanating from the movie for K-Pop and its surrounding culture of fandom. 

Zoey, Rumi, and Mira from K-Pop Demon Hunters sing in concert.

Pop Meets Policy

Hong’s book gave a lot of the background for why K-Pop Demon Hunters would permeate and dominate Netflix with worldwide popularity, and it’s all in line with the South Korean plans for cultural success. Through government strategy and a commitment to supporting Korean cultural expression and their national soft power, South Korea has become a juggernaut of creativity throughout Asia and around the world. 

Have you noticed the ubiquity of Korean creativity? From K-Pop that has flooded the airwaves (including the dominance of BTS specifically), to film (from Bong Joon Ho’s Parasite to zombie thriller Train to Busan), to Netflix hits such as the dystopian Squid Game or romantic comedy Business Proposal, not to mention food and fashion (Kimchi and Korean BBQ are household names and Friday night staples), Korean culture is everywhere. And it’s not just America: the Korean influence is felt deeply throughout the rest of the globe where K-dramas, music, and video games are affordably devoured throughout the developing world.

Neon symbols from the "Squid Game" TV show

And it’s not just by chance. Since the 1990s, under President Kim Dae-jung, the South Korean government strategy for growth, wealth, and pride, focused on popular culture. Through a perfect storm of 5-year plans (Hong, 6), a deeply historical sense of competition with Japan, a commitment not to repeat mistakes leading to the Asian financial crisis of the 1990s, and the cultural commitment to Confucian work ethic (Hong, 147), South Korea doubled-down on Hallyu (the Korean term for the wave of Korean cultural influence – or shall we say “dominance” since the 1990s. 

(Hong also hypothesizes a healthy dose of trauma being an impetus for the drive for success in the uniquely Korean attachment to han…you just have to read it on page 52 and throughout.)

A table full of Korean food

South Korea Goes All In on Culture

In this regrowth from the 1990s, the government saw the efficacy of using its soft power to build influence, grow its economy, and entertain the world. Former President Dae-jung envisioned a “national re-branding” to dig the country out of the “National Day of Humility” in 1997 when South Korea had to ask the IMF for a loan of $57 billion. Dae-jung recognized the vast sums earned in Hollywood, and thus set the course for pop cultural investment. 

In 2008, the government created the Ministry of Culture, Sports, and Tourism, as well as the Korea Creative Content Agency (KCCA). The KCCA provides financial and educational support to nurture talent, as well as low-interest loans, grants, and subsidies to agencies building their capital, all to support and expand Korean “soft power” and cultural strength.  

And it’s not just the government that has invested. Korean business and industry also invest in K-pop. Both directly and indirectly, an astounding one-third of Korean venture capital is pumped into the entertainment industry. “The Korean government, its entertainment companies, IT companies, and even corporations that have nothing to do with entertainment know that they have to work together to pull off Hallyu world domination,” (Hong, 128). 

A Korean woman in traditional dress, carrying a parasol

Punching Above Its Weight

As a result of this nationwide, governmental, societal buy-in to “K-power”, South Korea has gone from being one of Asia’s poorest countries, to being a regional leader with the fourth biggest economy in Asia in just five decades. Manufacturing of electronics, cars, semiconductors, and ships has grown exponentially in that time. But K-pop helped grow these industries massively through brand partnerships and awareness. Product placement of LG, Hyundai, and Kia, have helped the reputation and respect of these companies through their association with K-pop idols

Such strategic investment by the Korean government and population allows South Korea to punch way above its weight in global influence given its geography, population, and proximity to unstable neighbors (North Korea, Russia, and China). US News & World Report’s report of “powerful” countries ranked South Korea number 6, behind the US, Russia, China, UK and Germany, but above Japan, France, and Saudi Arabia. This ranking considers a country’s control, authority or influence over others by considering a holistic understanding of various strands of economic, technological, military, and cultural power. 

Ultimately, in terms of financial growth, South Korea experienced massive growth since its “National Day of Humility” in 1997. While this growth isn’t attributed to K-pop, the rise in global awareness and cultural dominance went hand-in-hand with the rapid technological expansion throughout the country, and the planned economic growth in manufacturing. 

Busan at night, from the air

Culture Pays

K-power expands both exports and imports. K-pop television shows, movies, and music have increased the advertising power of Korean firms, as well as the government, which has invested heavily in K-pop entertainment stocks and agencies. And while 300,000 visitors came from abroad in 1998, that number exploded to 17.5 million visitors in 2019. To the point of internationality, a recent innovation has been including non-Koreans in K-pop bands, bringing idols from other countries (Japan, China, and even Belgium), and increasing the linguistic connection and influence and expanding audiences. 

For context, the creative sector, boasting 4-5% annual growth rate and employing more than 600,000 people, generated $12.4 billion in exported revenue in 2021. Meanwhile, the consumer electronic equipment industry generated $4.7 billion

A busy street in Myeongdong, a popular shopping district in Seoul.

A busy street in Myeongdong, a popular shopping district in Seoul.

Could It Work in the U.S.?

Here at 4A Arts, we are working to expand public support for the American creative economy. We know that 71% of Americans believe art brings joy to their lives, but art faces significant headwinds in how artists should be supported by society and government, as demonstrated by think tanks, politicians’ attitudes, and budget cuts. This discrepancy is why we work to change the narrative around creativity–that our power rests in our innovation and expression…our creativity. But creativity requires time, space, room to grow and ideate, and can’t always compete in an unbridled economy. 

Would a Korean model of governmental support for creativity work in the United States? Tough to say, given the significant differences in tradition, expectations, and bureaucracy, not to mention profound Hallyu. Nevertheless, there is so much to be learned about a modern society investing in soft power to drive its politics and economy.

Beyond mere dollars and cents, 4A Arts believes a society benefits from a wellbeing economy. Every person should not just exist to work, but live a meaningful life. We believe that includes pleasure and self-expression. And of course that comes through participating in arts, culture, design, and craft. 

Improving the lives of citizens should always be the focus of a government, not just political power. And what industry more effectively strengthens communities, fuels economies, and expands soft power? Take South Korea as proof. Its GDP is 12 times larger now than in 1987, when they first began investing in their creative economy; that’s twice as fast as the American economy grew in the same time period. 

If South Korea’s cultural wave proves anything, it’s that when a nation invests in creativity as seriously as it does in infrastructure or defense, the returns are measured not only in GDP, but in influence, identity, and long-term resilience; not to mention sheer entertaining fun. 

An American flag flies over a small town Main Street at twilight

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A headshot photo of Gavin Lodge, Executive Director for 4A Arts.

Written by

Gavin Lodge

4A Arts Executive Director Gavin Lodge is also an actor, entrepreneur, political strategist, and father of two. After studying international affairs and philosophy at the University of Colorado, he worked as a field organizer in the Iowa Caucus followed by the role of “body guy” to then-candidate Senator Maria Cantwell of Washington State. Politics empowered him to move to New York City to pursue a performing career. Ultimately, he performed in multiple Broadway shows (including 42nd Street, Spamalot, and Priscilla, Queen of the Desert) as well as regional theater, national tours and several network television appearances.

Though he was thrilled every time he stepped onto a theatrical or sound stage, Gavin was equally happy to take on leadership roles in his local union and later his kids’ PTA.

With the Covid-19 pandemic, Gavin jumped back into the political realm, working as a strategist for Bryson Gillette, a minority-owned PR firm focused on politics and public affairs. He also volunteered for Be an #ArtsHero, an arts advocacy movement blossoming during the first few months of the pandemic. During his time with Be an #ArtsHero, he was part of a team that successfully lobbied for a first-of-its-kind hearing on the creative economy in front of the House of Representatives Small Business Committee.

Gavin lives in rural Connecticut with his partner (a composer and orchestral conductor), his TikTok-dancing daughter (who is musically gifted in unparalleled ways) and his soccer-playing son who recently told him “Dad? I’m just not into concerts and theater stuff.” As he told his son, Gavin believes there is much more to American arts and culture than “concerts and theater stuff.” From the video games his son loves to play to low-rider paint jobs to streaming television series while sitting on the couch, Gavin sees American arts and culture as an inclusive, “big tent” spectrum where everyone is an artist and everyone is a member of an audience.

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