MEASURING THE IMPACT OF HALLYU ON

KOREA’S ECONOMY: SETTING OFF ON THE

WRONG FOOT
Jimmyn Parc

Abstract

This paper argues that the impact of Hallyu (the Korean Wave) on the Korean economy
has only been effective in boosting related sectors, such as cosmetics, fashion, and tourism.
Interestingly, the Korean government has tried to take credit for the emergence of the Korean
Wave and has exaggerated its economic impact while publicizing its “contribution.” The
economic benefits of such nation branding based on Korean cultural contents have been
largely offset by the government’s actions that have made cultural contents a target during
diplomatic conflicts. The analysis in this paper leads to the following conclusions. First,
much of government support is mistargeted and ineffective due to lack of transparency.
Second, the government has intervened more in cultural industries as the subsidies it
provided increased its stake in this sector. Third, the media and academics report and
study the government’s supposed contribution to increase their revenues and advance their
careers. These factors have created vested interests that benefit from government support
for cultural industries, creating a vicious circle that further boosts such support. This paper
argues that businesses and artists should be credited with the emergence of the Korean
Wave. The government should instead focus on fostering a business-friendly environment
that enables companies to further advance Korea’s cultural industries to a truly global level.

Korea’s Economy 2021 | 27

The Korean Wave, or Hallyu, is the label given to describe the The worldwide emergence of Korean cultural contents
global popularity of Korean cultural content such as dramas, coincided with Korea’s continued economic development.
films, and popular music (known as K-pop). Korea’s exports Given that Hallyu has been considered to have a domino effect
of cultural contents doubled from $5.1 billion in 2016 to $10.3 upon related sectors, there have been endeavors to measure
billion in 2019. As these contents began to gain a wider following (or quantify) the impact on Korea’s economy. For example,
around the world in the late 1990s, a number of scholars the Korean Foundation for International Cultural Exchange
and commentators simply dismissed this phenomenon as an (KOFICE) estimates that the export value helped by Hallyu
unsustainable fad. However, its global popularity continues to reached $6.4 billion in 2019 (see Table 1).1 However, it is
grow, and its scope in terms of geographical coverage and genre important to stress the fact that the largest share (73 percent)
has expanded further. There has also been a notable impact on is from the game industry, which has grown despite a curfew
other related sectors in Korea such as cosmetics, cuisine, and (also known as the “Cinderella Law”) introduced in 2011 that
fashion that have gained international attention on the back prevented players under the age of 16 from playing online games
of Hallyu’s success. With such growing interest from around between midnight and 6 a.m. (the curfew was lifted in August
the world, the number of tourists and international students 2021). Furthermore, some argue that the exports of the game
who visit Korea increased significantly prior to the industry were led by large companies that were ineligible to
COVID-19 pandemic. receive government financial support.2 Interestingly, a number
of academic papers limit the impact of Hallyu to a few specific
and relevant sectors instead of the entire economy.

Table 1 Export of Cultural Contents ($, millions)

Industries 2016 2017 2018 2019 Growth

rate (2019)
Export of cultural Broadcasting 411 362 400 426 6.6%
content
Music 443 513 564 578 2.5%
Film 44 41 42 64 54.3%
Animation 136 145 173 179 3.6%
Character 613 664 733 919 25.3%
Game 3,277 5,923 6,392 7,860 23.0%
Publishing 187 221 249 234 -6.2%
Manhwa 32 35 40 46 13.9%
Total 5,143 7,904 8,593 10,306 19.9%
Export value of Broadcasting 366 323 345 368 6.6%
cultural content
Music 401 465 520 533 2.5%
helped by Hallyu
Film 31 29 30 46 54.3%
Animation 59 63 86 89 3.6%
Character 266 288 385 482 25.3%
Game 1,917 3,465 3,835 4,716 23.0%
Publishing 66 78 133 125 -6.2%
Manhwa 11 12 22 25 13.9%
Total 3,119 4,724 5,356 6,384 19.2%

Notes: 1. The data for 2019 is based on estimation; 2. The data for 2020 is not utilized as it is largely distorted by the COVID-19 pandemic.
Source: Jun and Kim, (2020): 45.

28 | Korea’s Economy 2021

This presents a compelling task as there have been a number Now looking at Korea, when the country began to develop its
of similar examples of successful or rising cultural industries economy in the 1960s and 1970s, its cultural products were
in other countries, but as of yet there has been no in-depth not well known around the world. The country went on to
assessment of their broader economic impact. These include the experience hardships following the Asian Financial Crisis in
long dominance of Hollywood films, the sudden breakthrough 1997, but managed to recover from this downturn relatively
of Nouvelle Vague or the French new wave in the late 1950s, the quickly. Again, at the time Korea’s culture was still relatively
emergence of British pop music in the mid-1960s, the global unknown around the world.
popularity of Japanese anime and manga since the 1970s, the
By considering the points described above, an assessment of
remarkable growth of Bollywood films in the 1990s, and the
Hallyu’s impact on the Korean economy would not appear
recent growth of Turkish drama series. Therefore, measuring
particularly feasible. However, there are several examples that
the economic impact of Hallyu upon the Korean economy in
show why this is worth assessing. For instance, some studies
contrast to these examples can be considered a unique approach
argue that the emergence of Hallyu has enhanced consumer
toward the issue.
preference toward Korean goods. There are also a number
After an overview of the scope of Hallyu, this study examines of cases where several Korean products used by Korean pop
three important questions; (1) Has Hallyu “truly” brought about stars have gone on to be very popular and have even sold out.
an impact on the Korean economy? (2) What is the effect of the Nevertheless, it is clear that this favorable consumer preference
many studies measuring the impact of Hallyu? And (3) Who does not directly contribute to the sales of all Korean products;
is responsible for the success of Hallyu? This paper addresses it works synergistically only when the value of a product per se
these issues one by one. meets the consumer’s expectation based upon various qualities.

In 2018, the Korean conglomerate LG contracted the world-

The Impact of Hallyu on the famous K-pop boy band BTS to advertise its smartphone G7
Korean Economy ThinQ. Despite the global popularity of BTS, LG failed to
increase the sales of its smartphone. Analyzing the reason for
The experience of Italy and Japan suggests that a successful
this modest performance is beyond the scope of this paper, but it
cultural industry does not have a decisive impact on a country’s
is noteworthy to mention that recently LG’s smartphones failed
economic performance. Italy is well known for its culture, such
to be rated as “best” by Consumer Reports. In fact, reflecting its
as its many historical buildings, artists, and artifacts, particularly
weak performance, LG announced in April 2021 that it would
those from the Renaissance period. This notion of Italy as a
be withdrawing from the smartphone market.
country possessing artistic sensitivity has contributed to the
fame of relevant works – from musical instruments to fashion One of the reasons for LG’s decision was the fierce competition
products – which are globally competitive. However, Italy’s it faced from its domestic rival Samsung. This conglomerate’s
positive image and reputation have not helped the country flagship smartphone, the Galaxy, has been leading the global
avoid persistent and systemic economic difficulties. This would market and is a major challenger to Apple. Interestingly,
suggest then that either this positive image of Italian culture has Samsung released its Galaxy S20+ BTS edition in 2020. It was
limited impact on only a few types of products or that there are naturally assumed that this product would be a global hit, but its
other factors that have a stronger impact. price had to be reduced in many countries in order to increase
sales. Some argue that its modest sales performance was due to
A more recent example is Japan. Since the 1960s, it has gained its
the impact of the COVID-19 global pandemic. However, given
global reputation due to its unique culture and cultural heritage,
that the sales of Apple’s products surged during the same period,
and its cultural contents, such as anime and manga, have also
it is evident that BTS was not enough to drive sales when the
been exported across the world. These cultural contents have
phone itself was too expensive for most consumers.3 It should
contributed to Japan’s significant presence in the global market.
be noted that throughout the pandemic, BTS has maintained
However, this country too has had economic difficulties. Since
their international popularity.
the 1990s, it has experienced a long period of stagnation known
as the “lost decades.” One may then ask why Japan’s cultural These two examples show that while the promotional power
uniqueness and positive overseas image have not been effective of Hallyu for certain products cannot be entirely denied,
in boosting the sales of Japanese products or its economy. This the competitive quality and the price of a product are far
suggests that other factors exert a more significant impact than more important than simply relying upon the popularity of
the cultural aspect.

Korea’s Economy 2021 | 29

its celebrity endorsers. In other words, Hallyu may foster State Exploitation of Hallyu Can Have
favorable consumer preference toward Korean products, but its Negative Consequences
effect is evidently limited. Korean celebrities can be a source of
On October 14, 2018, a large crowd of young French people
publicity (or marketing), but they do not guarantee the success
were waiting outside “Italie Deux,” a large shopping center in
of the relevant product.
the 13th arrondissement of Paris. That evening, Korean President
In this regard, it is interesting to note that Korean companies Moon Jae-in and his wife attended the Korea-France Friendship
have also employed well-known international celebrities such as Concert that took place at this venue during their state visit to
Leslie Cheung (for Orion’s “To you” chocolate brand in 1989), France. However, it was not President Moon whom the crowd
Chow Yun-fat (for Lotte’s Milkis in 1989), Drew Barrymore came to see, but BTS, who had stopped by for a performance. At
(for Baskin-Robbins Korea in 2005), Gwyneth Paltrow (for that time, BTS was on the European leg of their new world tour.
Samsung C&T Corporation’s Beanpole in 2005), Jessica Alba The day before (October 13), BTS held a concert in Amsterdam
(for LG Household & Health Care’s Isa Nox in 2006), Paris and planned to have additional concerts in Berlin and Paris on
Hilton (for Fila Korea in 2007), and Pierce Brosnan (for Cheil October 16-17 and 19-20, respectively.
Industries’ Galaxy in 2006-2008). As with the previously
BTS fans around the world were surprised by the band’s abrupt
described case regarding BTS, these celebrities’ appearances
visit to Paris and soon became angry at the Korean government
in commercials does not guarantee a positive performance for
and its president when they learned that BTS was asked to come
these products. It is also evident that promotional power is not
to Paris from Amsterdam to perform two songs at the concert
a unique feature of Hallyu.
in front of the President despite their extremely busy schedule.
Recruiting Hallyu celebrities for advertising is not limited BTS fans later became even more furious when they learned
to Korean companies. Examples include the French luxury that the Korean government offered the band only custom-
brand Louis Vuitton recently announcing that BTS would be made watches from President Moon featuring his signature, as
ambassador for their men’s line of goods, and McDonald’s compensation. Given the fact that the concert hall was filled
launching its BTS Meal in early 2021. Of notable interest with mostly young people, it is easy to see who was taking
though is the Korean girl band Blackpink, which has had more advantage of whom.
dynamic engagements in this regard. One of its members,
This kind of “state exploitation” is not limited to the Moon
Jennie, is a house ambassador for the French luxury goods
administration. Former presidents such as Lee Myung-bak and
brand Chanel; Jisoo is a global brand ambassador for another
Park Geun-hye also sought out Hallyu celebrities to accompany
French luxury fashion house Christian Dior, while Rosé is
them during trips abroad, including Lee Young-ae, who was the
also one of the recent ambassadors for the American jewelry
main actress in the hit K-drama Dae Jang Geum (Jewel in the
company Tiffany & Co. Overall, the cases of these two bands
Palace), and the K-pop boy band Infinite, respectively. In this
are not isolated ones. A number of other Korean celebrities have
context, it is worth mentioning that Korea’s international image
worked with international brands, helping them gain attention
has not always been a positive one, despite its remarkable
from their fans, resulting in some products even selling out.
economic development. Several troubling stories over the
Clearly, the outstanding performance of these international decades concerning its military dictatorships, nuclear crises,
brands cannot be attributed to the impact of Hallyu. In other and the threat of war have been highlighted in international
words, the positive impact of Hallyu has been limited to such as news, casting a negative light on Korea.
cosmetics, cuisine, and fashion. Given these facts, why then has
There are negative side effects associated with such state
the Korean government been so eager to measure the impact
exploitation. This is evident when Korean governments have
of Hallyu upon the Korean economy? Addressing this question
sought to link Hallyu with a sense of cultural superiority or the
requires understanding more fully the true contribution of the
cultural appropriation of Korea while making it appear that the
government to the emergence of Hallyu.
government contributed to the emergence of Hallyu. Such an
aspect has also been reinforced by Korean media outlets who
have often portrayed Hallyu in nationalistic terms. Similar
messages have even been diffused through international media
outlets, but often pejoratively.

30 | Korea’s Economy 2021

As Korean cultural contents have become very popular among What is the Outcome from Efforts to
consumers and audiences, television stations in several Asian Measure the Impact of Hallyu?
countries have begun to broadcast many Korean dramas and
One of the most remarkable trends is that successive Korean
K-pop songs. Unfortunately, this flood of Hallyu contents
governments have not only exploited Hallyu, but have also
has increasingly been perceived as a new form of cultural
considered its emergence a result of their support. In order
imperialism, and with the frequent efforts by successive
to justify their claim, policymakers have shown interest in
Korean governments to associate themselves with Hallyu, this
quantifying the impact of Hallyu on the Korean economy.
entertainment sector can suffer whenever there are diplomatic
They believed that this would help widely publicize their
conflicts. Two key examples highlight this aspect very well.
“contribution” to Hallyu and thus justify the provision of
The first is President Lee Myung-bak’s 2012 visit to Dokdo, subsidies to the entertainment sector.
a group of small islets over which Japan claims territorial
As part of this effort, a few government-related organizations
sovereignty, and which it calls Takeshima. As a result of the
began to conduct relevant research in the early 2000s. They
diplomatic backlash to his visit, Hallyu products that were
were soon joined by a great number of government research
popular among young Japanese at that time became the main
institutes and international consulting firms. Korean companies,
target for Japanese media outlets who criticized its popularity.
particularly the big conglomerates known as chaebols, have
Since then, the popularity of Hallyu in Japan waned. Out of
been very interested in measuring the impact of Hallyu as
this emerged an anti-Hallyu movement, which gained further
they have sought to utilize it as part of marketing strategies to
support within Japanese society while the number of Japanese
promote their domestic and international image.
tourists visiting Korea began to decline. A change emerged
during the period of 2016-2017 as Hallyu’s popularity increased For their part, Korean media outlets have been interested in
due to bands such as BTS and Twice. The number of Japanese publishing these results as a means to gain more attention among
tourists increased again but only modestly until the outbreak of media consumers. Academic scholars later joined in this trend
the COVID-19 pandemic. by publishing their research on this topic. With such vested
interests, most of these studies have tended to overestimate the
The second example occurred in 2016 when the Korean
true impact of Hallyu on the Korean economy. This has created
government agreed to host the deployment of the US Terminal
a vicious circle; these exaggerated figures push the government
High Altitude Area Defense (THAAD) as a defensive measure
to offer more subsidies to the cultural industries, as Hallyu is
against North Korea’s missile threat. The Chinese government
believed to be contributing greatly to the Korean economy.
viewed it as a threat to its own strategic interests in the region,
which led to pressure on the Korean government. This was Since the late 1990s, the Ministry of Culture, Sports, and
undertaken by restricting the import of a wide variety of goods, Tourism (MCST) has substantially increased the amount of
notably in the cultural sector including music, dramas, and films public support to the cultural industries, as shown in Table
since 2017, and is still largely maintained to this day. Given that 2. At first glance, the figures seem to be rather large. Indeed,
Japan and China are the largest importers of Korean cultural a number of Korean people in the cultural industries assert
contents, these two examples show how Hallyu contents have that this amount is large, especially when compared with
suffered as a result of how the Korean government has sought preceding years. However, Table 2 shows that subsidies
to associate itself with them. have remained very small relative to the value added of the
industries concerned.

Korea’s Economy 2021 | 31

 Table 2 Public Supports and Value Added for Selected Cultural Industries (millions of constant 2018 $)

Game industry Film industry Manhwa industry Music industry

Year
A B A B A B A B
2005 15 3,983 - 768 2 153 2 521
2006 10 3,323 - 1,620 2 284 3 696
2007 8 2,261 - 806 2 301 2 716
2008 8 2,553 32 325 2 225 2 861
2009 19 3,044 66 1,006 2 250 2 930
2010 17 3,426 80 1,063 2 262 3 1,039
2011 15 3,804 78 1,386 3 267 2 1,452
2012 20 4,153 71 1,552 6 293 3 1,513
2013 18 4,133 103 1,631 6 306 5 1,550
2014 24 4,283 106 1,394 7 306 8 1,604
2015 19 4,589 108 1,558 7 309 7 1,644
2016 32 4,407 116 1,618 8 325 7 1,739
2017 58 5,269 106 1,584 11 404 7 1,858
2018 50 5,617 89 2,433 11 383 9 1,911

Notes: (1) A-Public support (provided by the MCST, but exclusive the amount provided by local governments in Korea); B-Value added;
(2) $1=KRW1,100.
Sources: A-MCST (various years);4 B-MCST (various years).5

Moreover, it is crucial to note that the (absolute and relative) Despite this modest level, some argue that there are still
level of subsidies has remained modest when compared with many industry participants who have actually benefitted from
countries that consider culture and its industries to be important, these subsidies. This overlooks the fact that Korea’s cultural
such as France.6 In general, many countries pay great attention industries have been driven mostly by large companies: for
to their film industries by allocating large subsidies. Therefore, instance, CJ and Lotte for the film industry, Hybe (formerly Big
a comparison of subsidies to film industries among selected Hit), SM, YG, and JYP for the music industry, and Naver and
countries offers a more precise view. In this regard, Table 3 Kakao (formerly Daum) for the manhwa (webtoon) industry.8
shows how relatively low the level of subsidies in the Korean However, most of these companies have been ineligible for
film industry is. subsidies, as public support is generally provided only to
small companies and start-ups.9 This shows that far from
subsidies being the key factor, it is actually good business
practices that is the most significant component in Hallyu’s
international success.

32 | Korea’s Economy 2021

 Table 3 Subsidies in Film Industry (Selected Countries, millions of constant 2018 $)

Year Korea France United Kingdom United States

2005 n/a n/a n/a n/a
2006 50 494 460 275
2007 92 497 436 639
2008 128 523 407 894
2009 153 456 405 870
2010 186 455 476 1,034
2011 261 550 542 1,282
2012 307 572 539 1,622
2013 226 568 556 1,639
2014 275 612 582 1,769
2015 237 582 664 1,528
2016 148 629 767 1,652
2017 - 729 791 n/a
2018 - 737 n/a n/a

Notes: The data for Korea includes those of the “Fund for Funds,” which is a pool of private and public funds that invests in the Korean film
industry. Hence, this can be considered as the maximum estimates of subsidies in the Korean film industry.
Source: Parc and Messerlin (2021).7

Alongside the support for small companies, a large portion of Credit for the Success of Hallyu: Limited
these subsidies go to hosting K-pop concerts or establishing Impact of Government Support
Korean cultural centers around the world. In other words, these
Many scholars and media outlets have highlighted the role of
subsidies are specifically allocated to promote the national
the Korean government as one of the key factors in Hallyu’s
brand, not to enhance the true competitiveness of Korea’s
success. They have argued that the government offered a
cultural industries. Furthermore, there are critical problems
significant number of subsidies – though this amount is not
with this process.10 First, the allocation of subsidies is not
large when compared with other countries and has not been
transparent and often involves a degree of nepotism.11 Second,
effective enough to be credited for Hallyu’s global popularity,
as a result, subsidies do not normally go to the companies that
as shown in the previous section. However, when making these
really need this support. Third, governments have intervened
claims, such proponents have forgotten some essential points
more in cultural industries as subsidies have increased the stake
that deserve close attention.
they hold in this sector. Simply, the provision of subsidies has
created several vested interests that benefit from this process. It has only been recently that the Korean government has
recognized the cultural industries as new drivers for further
Despite such evident problems, the level of subsidies has
economic advancement. In previous decades, the majority of
continued to increase over time. This situation can only be
Korean cultural contents were under government control or
described by the old saying that “when one does all the hard
censorship.
work, another takes the credit.” From this perspective it
becomes clear why the endeavors to measure the impact of Until the mid-1990s, the government censored lyrics of K-pop
Hallyu on the Korean economy have continued to be pursued songs and regulated the attire of singers. For instance, the
by many organizations and analysts. Furthermore, they have Public Performance Ethics Committee requested Seo Taiji and
always been welcomed by the groups that have vested interests Boys to modify the lyrics of “Sidae Yugam” (시대유감, “Regret
as the results can be utilized as a means to further ensure the of the Times”) as this song was considered to be critical of the
continuous increase in subsidies.

Korea’s Economy 2021 | 33

Korean government at the time. The band declined to do so 1997. Second – and somewhat ironically – most people neglect
and released an instrumental version of the song instead. In to recognize that the side effect of this fast internet and well-
response, much of the Korean public supported the band and developed infrastructure ruined almost ninety percent of the
the “pre-censorship” system was abolished in 1996 as a result physical CD market.13 In a similar way, Korean dramas and films
of this case. were also greatly affected by this technological development.
Furthermore, the availability of Social Network Services (SNS)
Up until the early 1990s, the Korean government never is not limited to Korea’s cultural industries and their fans;
considered that films provide economic benefits. Instead, its they are mostly open to anyone, and cultural industries of any
focus had been to consider the ways in which these particular country can utilize them to diffuse their contents.
contents should be subject to censorship, or utilized to project the
nation’s ideology or the government’s policies. Korean dramas
have been used for similar purposes. In addition, Korean dramas Give Credit Where Credit Is Due
have been widely criticized for being unrealistic, provocative, Therefore, the credit for the emergence of Hallyu should not
and overly commercialized. Hence, the Korean government, go to the government, but to the businesses and performers
and a number of social groups, have sought to increase their that have been innovative enough to use the newly available
influence on dramas. These kinds of restrictions continue to this internet infrastructure. If Korea wishes to ensure that the
day in Korea although the level of censorship and government global popularity of Hallyu is sustainable for the long term,
influence has been significantly lowered.12
the focus should be on analyzing how Korean cultural contents
Some have pointed out that the creation of a few specialized and their relevant industries have formed and have become
organizations, such as the Korean Culture and Information globally competitive, instead of exaggerating or boasting about
Service (KOCIS) and the Korea Creative Content Agency the government’s role in, and support of, Korea’s cultural
(KOCCA) to support the country’s cultural industries, are the industries. In this regard, Korea should reflect upon the United
product of this dramatic change of attitude and policy. This States (U.S.), whose pop culture has long been popular around
may appear to be a crucial variable in its success, but again, the world and whose influence is incomparable when measured
this is a simplistic viewpoint. First, KOCIS and KOCCA against Hallyu. Yet the U.S. government has not explicitly
were established in 1971 and 2009, respectively. KOCIS is an exploited their cultural products in the way that the Korean
organization that focuses on the promotion of Korean culture government has. Furthermore, it is well known that a number
overseas and is more interested in taking advantage of already of countries and people do not like the U.S., but that they still
well-established cultural goods to promote the national brand enjoy its pop culture.
than in enhancing the competitiveness of Korean culture. In late April 2021, Youn Yuh-jung won Best Supporting
Regarding KOCCA, it is difficult to give it credit given that Actress at the Academy Awards for Minari (2020), which is
several Korean cultural contents had already begun to gain an American independent film directed by Lee Isaac Chung,
global popularity in the late 1990s. a Korean-American. Youn became the first Korean actor to
Others have highlighted the efforts of the Korean government to receive an Oscar, and in response several Korean politicians
finance and establish the internet infrastructure during the Kim and media outlets have sought to attribute this achievement
Dae-jung administration as a key contribution to the growth as part of nation branding.14 In this regard, it is important to
of Korean cultural industries, but two critical points should be stress what Bong Joon-ho, the Korean director who won the
stressed in this respect. First, the Korean internet infrastructure Best Director at the 2019 Academy Award for Parasite (2019)
was not for Hallyu industries, but was an incentive to overcome has said about Youn’s success: “This is not an achievement of
the economic difficulties caused by the Asian Financial Crisis in Korea or the Korean film industry, but her own.”15

34 | Korea’s Economy 2021

Conclusion 6
 atrick Messerlin and Jimmyn Parc, “The Real Impact of Subsidies on the
P
Film Industry (1970s–Present): Lessons from France and Korea,” Pacific
Analyzing how Korean cultural contents have gained global Affairs 90 no. 1 (2017): 51-75; Jimmyn Parc and Patrick Messerlin, “In
popularity is beyond the scope of this paper, but it does require Search of an Effective Trade Policy for the Film Industry: Lessons from
great effort through in-depth analysis. Even though there is great Korea,” Journal of World Trade 52 no. 5 (2018): 745-764; Jimmyn Parc and
interest in this question, it still has not been satisfactorily and Patrick Messerlin, “Overcoming the Incoherent ‘Grand Maneuver’ in the
French Film and TV Markets: Lessons from the Experiences in France and
deeply analyzed yet by scholars, at least from my view. Instead
Korea,” Global Policy 11 s. 2 (2020): 31-39.
of making efforts to measure the impact of Hallyu on the Korean
economy, the Korean government should foster a business- 7
J immyn Parc and Patrick Messerlin, The Untold Story of the Korean Film
friendly environment that enables companies to advance further Industry: A Global Business and Economic Perspective (Cham, Switzerland:
Palgrave Macmillan, 2021).
Korea’s cultural industries to a truly global level. This is the
most effective way to enhance the true competitiveness of 8
J immyn Parc, “The Effects of Protection in Cultural Industries: The Case
Hallyu, making it a supplementary but critical asset that will of the Korean Film Policies,” International Journal of Cultural Policy 23
help the world achieve true cultural diversity. no. 5 (2017): 618-633; Jimmyn Parc, “Business Integration and its Impact
on Film Industry: The Case of Korean Film Policies from the 1960s until
the Present,” Business History 63 no. 5 (2021): 850-867.; Jimmyn Parc
Acknowledgement and Nobuko Kawashima, “Wrestling with or Embracing Digitization in the
Music Industry: The Contrasting Business Strategies of J-pop and K-pop,”
This study was financially supported in part by the Institute of Kritika Kultura 30/31, (2018): 23-48; Jimmyn Parc and Shin Dong Kim,
Communication Research, Seoul National University. I would “The Digital Transformation of the Korean Music Industry and the Global
like to express my gratitude to Patrick Messerlin for his very Emergence of K-pop,” Sustainability 12 no. 18 (2020): 7790-7805.
useful comments on previous drafts. 9
 arin Holroyd, “Digital Content Promotion in Japan and South Korea:
C
Government Strategies for an Emerging Economic Sector,” Asia & The
Pacific Policy Studies 6 no. 3 (2019): 290-307.
Author Identification
10
 issim Otmazgin, “State Intervention Does Not Support the Development
N
Jimmyn Parc is a visiting lecturer at Sciences Po Paris in France
of the Media Sector: Lessons from Korea and Japan,” Global Policy 11 s. 2
and a visiting researcher at the Institute of Communication (2020): 40-46.
Research, Seoul National University in Korea.
11
 ne of the recent cases is related to the son of President Moon; see
O
Elizabeth Shim, “President Moon Jae-in’s Son Disputes Nepotism Charges
after Winning Arts Grant,” UPI, June 22, 2021, https://www.upi.com/
Top_News/World-News/2021/06/22/South-Korea-Moon-Joonyong-arts-
1
Jong Kun Jun and Seung-Nyeon Kim, 2019 Hallyu ŭi kyŏngjejŏk
grant-controversy/1601624384793/.
pagŭhyokwa yŏngu [The Economic Impact of Hallyu 2019],
Seoul: KOFICE, (April 8 2020): 45, http://kofice.or.kr/b20industry/b20_ 12
 wanpyo. Kim, Dŭrama, hankuk rŭl malhada (“Dramas talk about Korea”),
H
industry_01_view.asp?seq=1057&page=1&find=&search=. (Seoul: Inmulgwasasangsa, 2012): 383-386.
2
J ong Hyun Wi, “Chŏngbu ŭi geimsanŏp chŏngch’aek hyogwa e daehan 13
 onversation with Park Jin-young at the Marché International du Disque
C
pyŏga bunsŏk: Munhwach’eyukgwangwangbu ŭi geim gyuje wa chinhŭng et de l'Edition Musical (MIDEM) 2009, https://www.youtube.com/
chongch’aek ŭl chungsim ŭro” [“Korea Government Policy Evaluation watch?v=Mrm8BjMLnAM.
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 oon Jae-in’s Facebook page, https://www.facebook.com/moonbyun1/
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Hangukgeimhakhoi nonmunji [Journal of Korea Game Society] 19, no. 6 photos/a.263896370383389/3560009207438739/.
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15
 oo-kyung Jo, “Bonjunho ‘akadmi, duinŭkke yunyŏjŏng iran hullyunghan
Y
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 ark Savage, “BTS Named World's Best-Selling Artists of 2020,” BBC
M baeu balgyŏn’” (“Bon Joon-ho ‘Academy discovered Yun Yeo-jeong, a great
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Soul%3A%207%20and%20Be.

4
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of Korea (MCST), various years.

5
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Korea’s Economy 2021 | 35