South Korea has long been known for its manufacturing prowess, but the Netflix hit Squid Game is taking the country’s cultural clout to another level that augurs well for a new driver of economic growth.
While Korean pop acts and TV dramas have been scoring hits overseas for years, only a handful — boy band BTS, for example — have managed to win many fans outside of Asia. Squid Game, set to become the most-watched show worldwide on Netflix, is changing all that.
Building on the success of last year’s Oscar-winning film Parasite, the new Netflix show about indebted people fighting in a deadly survival game has caught the global mood and is projecting Korea’s growing soft power. It could also help make the country’s cultural exports into much bigger economic contributors.
Photo: Reuters
Netflix says its business last year added US$1.9 billion to Korea’s economy, but overall the entertainment industry is starting to pull more weight.
ENTERTAINMENT EXPORTS
The size of Korea’s content industry is small relative to the vast manufacturing sector, but has been growing steadily. Content exports totaled US$10.8 billion last year, roughly one tenth of chips — Korea’s main cash cow — but already earning more than some other key export items such as household appliances and cosmetics.
Photo: Reuters
The value of Korea’s entertainment exports, which include publishing, games, music, movies and TV shows, rose 6.3 percent last year even as overall shipments of goods fell 5.4 percent due to the pandemic.
Even consumer products related to the so-called Korean wave, such as cosmetics, clothes and food items, rose 5.5 percent last year, according to a report by the Korea Foundation for International Cultural Exchange.
ATTRACTING TOURISTS
The popularity of Korean soap operas and idol stars led to a surge in Chinese visitors in the years before COVID struck, but that over-reliance has become a vulnerability for the tourism industry.
When relations between the two nations sourced in 2017 over the deployment of the THAAD US missile defense system in Korea, a Chinese ban on tourists to the country sent overall arrivals plunging. That shaved 0.4 percentage points off GDP growth that year.
Among total inbound tourists, 13 percent are estimated to have visited Korea in 2019 specifically for the purpose of experiencing pop culture and attending fan events, with their spending totaling US$2.7 billion that year, according to KOFICE.
Korea’s key challenge is to broaden its visitor base beyond Asia, and the growing appeal of its pop culture aids that mission.
CREATING JOBS
While still small in size, entertainment is one of Korea’s fastest-growing sectors along with technology. The number of workers in creative and artistic services grew 27 percent between 2009 and 2019, while that in manufacturing, a traditional engine for economic growth, increased 20 percent in the same period, according to data from the website of Statistics Korea.
In a report last month, Netflix said it helped create 16,000 full-time jobs in Korea from 2016 to last year across entertainment and related industries. The firm estimates it contributed US$4.7 billion to the economy in the period.
In the March 9 edition of the Taipei Times a piece by Ninon Godefroy ran with the headine “The quiet, gentle rhythm of Taiwan.” It started with the line “Taiwan is a small, humble place. There is no Eiffel Tower, no pyramids — no singular attraction that draws the world’s attention.” I laughed out loud at that. This was out of no disrespect for the author or the piece, which made some interesting analogies and good points about how both Din Tai Fung’s and Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) meticulous attention to detail and quality are not quite up to
April 21 to April 27 Hsieh Er’s (謝娥) political fortunes were rising fast after she got out of jail and joined the Chinese Nationalist Party (KMT) in December 1945. Not only did she hold key positions in various committees, she was elected the only woman on the Taipei City Council and headed to Nanjing in 1946 as the sole Taiwanese female representative to the National Constituent Assembly. With the support of first lady Soong May-ling (宋美齡), she started the Taipei Women’s Association and Taiwan Provincial Women’s Association, where she
Chinese Nationalist Party (KMT) Chairman Eric Chu (朱立倫) hatched a bold plan to charge forward and seize the initiative when he held a protest in front of the Taipei City Prosecutors’ Office. Though risky, because illegal, its success would help tackle at least six problems facing both himself and the KMT. What he did not see coming was Taipei Mayor Chiang Wan-an (將萬安) tripping him up out of the gate. In spite of Chu being the most consequential and successful KMT chairman since the early 2010s — arguably saving the party from financial ruin and restoring its electoral viability —
It is one of the more remarkable facts of Taiwan history that it was never occupied or claimed by any of the numerous kingdoms of southern China — Han or otherwise — that lay just across the water from it. None of their brilliant ministers ever discovered that Taiwan was a “core interest” of the state whose annexation was “inevitable.” As Paul Kua notes in an excellent monograph laying out how the Portuguese gave Taiwan the name “Formosa,” the first Europeans to express an interest in occupying Taiwan were the Spanish. Tonio Andrade in his seminal work, How Taiwan Became Chinese,
RSS