KOREAN WAVE: EXPLOITING A CULTURAL PHENOMENON AS AN INSTRUMENT THROUGH SOFT POWER IN SUPPORTING THE ECONOMIC DEVELOPMENT OF REPUBLIC OF KOREA (2002-2012)

By Okti Syaira 016201110058

A Thesis presented to the Faculty of Humanities President University In partial fulfillment of the requirements for Bachelor Degree in International Relations Major in Diplomacy

2015 DECLARATION OF ORIGINALITY

I declare that this thesis entitled “: Exploiting a Cultural Phenomenon as an Instrument Through Soft Power in Supporting the Economic Development of Republic of Korea (2002-2012)” is, to the best of my knowledge and belief, an original piece of work that has not been submitted, either in whole or in part, to another university to obtain a degree.

Cikarang, April 2015

Okti Syaira

i PANEL OF EXAMINER APPROVAL SHEET

The Panel of Examiners declare that the thesis entitled “Korean Wave: Exploiting a Cultural Phenomenon as an Instrument Through Soft Power in Supporting the Economic Development of Republic of Korea (2002-2012)” that was submitted by Okti Syaira, majoring in International Relations from the Faculty of Humanities was assessed and approved to have passed the Oral Examinations on April 15th 2015.

Eric Hendra, SIP, MA. Chair – Panel of Examiner

Hendra Manurung, SIP, MA. Examiner

Prof. Anak Agung Banyu Perwita, Ph.D. Thesis Adviser

ii THESIS ADVISER RECOMMENDATION LETTER

This thesis entitled “Korean Wave: Exploiting a Cultural Phenomenon as an Instrument Through Soft Power in Supporting the Economic Development of Republic of Korea (2002-2012)” prepared and submitted by Okti Syaira in partial fulfillment of the requirements for the degree of Bachelor of Arts in International Relations in the Faculty of Humanities has been reviewed and found to have satisfied the requirements for a thesis. I therefore recommend this thesis for oral defense.

Cikarang, April 2015

Recommended and Acknowledge by

Prof. Anak Agung Banyu Perwita, Ph.D. Thesis Advisor

iii ABSTRACT

Title: “Korean Wave: Exploiting a Cultural Phenomenon as an Instrument Through Soft Power in Supporting the Economic Development of Republic of Korea (2002-2012)”

Republic of Korea (ROK) was one of the poorest countries after the Korean War. Then the Asian Financial Crisis 1997-1999 has made the ROK’s economy decline. At that time, Korean cultural industry became a government’s target as a growth engine of the economy. To achieve national interest in economic development, ROK is using culture as a soft power in influencing and attracting international communities with the exports of Korean cultural products. ROK has been a top exporter on electronic equipment; vehicle and steel, which is, play a major role in the economic growth. Since the first exports of Korean dramas to and Taiwan, Korean cultural industry has been contributing to develop the economy. The term of Korean wave was indicating the first boom of cultural products in overseas. The government is heavily funding and supporting the cultural products since it was emerged in order to double the numbers of exports and spread the culture. Korean cultural products have strong appeal that able to attract international communities to interest in them. Today, ROK is an advance country with incredible economic growth.

Keywords: Republic of Korea, Soft Power, Culture, Korean Wave.

iv ABSTRACT

Title: “Korean Wave: Exploiting a Cultural Phenomenon as an Instrument Through Soft Power in Supporting the Economic Development of Republic of Korea (2002-2012)”

Republik Korea (ROK) adalah salah satu negara termiskin setelah Perang Korea. Kemudian krisis keuangan Asia 1997-1999 telah membuat perekonomian Korea Selatan menurun. Pada saat itu, industri budaya Korea menjadi target pemerintah sebagai mesin pertumbuhan ekonomi. Untuk mencapai kepentingan nasional dalam pembangunan ekonomi, ROK menggunakan budaya sebagai soft power. ROK mempengaruhi dan menarik masyarakat internasional dengan ekspor produk budaya Korea. ROK telah menjadi eksportir atas pada peralatan elektronik; kendaraan dan baja, yang, memainkan peran utama dalam pertumbuhan ekonomi. Sejak ekspor pertama drama Korea ke China dan Taiwan, industri budaya Korea telah memberikan kontribusi untuk mengembangkan perekonomian. Korean Wave yang menjadi istilah dalam menunjukkan ledakan produk budaya pertama di luar negeri Pemerintah sangat mendanai dan mendukung produk budaya sejak awal munculnya untuk melipat gandakan jumlah ekspor dan menyebarkan budaya. Produk budaya Korea memiliki daya tarik yang kuat yang mampu menarik minat masyarakat internasional. Sekarang, ROK adalah negara maju dengan pertumbuhan yang luar biasa.

Keywords: Republic of Korea, Soft Power, Culture, Korean Wave.

v ACKNOWLEDGMENT

Alhamdulillahirabbil’alamin… Finally I did it. After the struggle finally this thesis has completed and finished. This thesis would not have been done if it were not for those who support me during writing this thesis. Therefore, I would like to thank: First, I would like to thank Allah SWT for the blessings and helping; by Your blessings and helping I am allowed to finished this thesis. I would like to thank my family; my father, my mother, my sister, my cousins, my big family for the constant support. Thank you for the motivations and the advices that you all have been giving me. Thank you for all the lecturers that helped me throughout the making ogf this thesis, especially Mr. Banyu. Thank you for your patient, for guiding me and for the time. I am sorry for the mistakes that I have made. Thank you to my classmates, Astari, Gania, Opi, Najla, Rajiv, Yudha, Pandu, Icha, Mahfud, Farhan, Junko, Astri, Sarah and Didit. Thank you for the support Ayo Men! Thank you for the laugh. I hope our friendship still continue in the future. Thank you to all who support me, which I cannot mention one by one. Thank you very much.

Cikarang, April 2015

Okti Syaira

vi Table of Contents CHAPTER I - Introduction ...... 1 I.1 Background of Study ...... 1 I.2 Problem Identification ...... 4 I.3 Statement of Problems ...... 5 I.4 Research Objectives ...... 5 I.5 Significance of Study ...... 6 I.6 Theoretical Framework ...... 6 I.7 Scope and the Limitations of the Study ...... 10 I.8 Research Methodology ...... 10 I.9 Thesis Structure ...... 11 CHAPTER II – Korean Wave as a Soft Power of ROK ...... 13 2.1 What is Korean Wave? ...... 13 2.1.1 The Emergence of Korean Wave ...... 14 2.1.2 The Triumph Rise of Korean Wave ...... 16 2.2 ROK’s Soft Power Through Korean Wave ...... 17 2.2.1 The Form of Korean Wave ...... 18 2.2.2 Korean Culture Exports ...... 19 2.2.3 Korean Cultural Policy ...... 21 2.3 The Expansion of Korean Wave ...... 23 2.3.1 Korean Wave in Asia ...... 23 2.3.2 Korean Wave in Global ...... 24 2.3.3 The Role of Media in Expanding Korean Wave ...... 26 CHAPTER III – The Economic Development of ROK ...... 28 3.1 Asian Financial Crisis 1997-1998 ...... 29 3.1.1 The Asian Financial Crisis 1997-1998 Stroked ROK ...... 29 3.1.2 The ROK Government in Tackled the Asian Financial Crisis 1997- 1998 ...... 30 3.2 ROK is a Top Exporter Country ...... 32 3.2.1 Korean Cultural Products Have Spread Across The World ...... 33 3.2.2 The Favorable of Korean Consumers Products in Overseas...... 34

vii 3.3. The Increasing Number of Tourism Industry in Developing Economic Growth of The Country ...... 36 CHAPTER IV – The Role of Korean Wave in the Economic Development of ROK ...... 42 4.1 The Contribution of Korean Wave to the Economy of ROK ...... 42 4.1.1 The Support of Tourism, Korean Cultural Products and Consumers Products to ROK’s Economy ...... 44 4.1.2 Visit Korea Year 2010-2012 ...... 47 CHAPTER V – Conclusion ...... 51 Bibliography ...... 52

viii LIST OF ACRONYMS

IMF : International Monetary Fund KCC : Korean KCCA : Korea Creative Content Agency KTO : Korea Tourism Organization KOCIS : Korean Culture and Information Service MCST : Ministry of Culture, Sports and Tourism MOFA : Ministry of Foreign Affairs ROK : Republic of Korea VKC : Visit Korea Committee

ix CHAPTER I INTRODUCTION

1.1 Background of Study

In 1950, Republic of Korea (ROK) was one of the poorest countries in the world and only relied on agricultural economy. In 4 decades, ROK was changing quickly from the poorest country, became on of the richest states in the world. In 2013, ROK’s GDP was $1.19 trillion based on IMF statistics. The nation boasts the world’s 15th-largest economy. 1 The industrial sectors of transport and communications technology are supporting the resurrection of ROK economy. In addition, Korean culture through the Korean wave has become strength for ROK in obtaining economic benefit. The Korean economy is driven by the manufacturing and exports on automobiles, mobile phones, PCs, TVs, a wide range of other electronics and recently, Korean dramas and movies are also exported widely because of the Korean popular culture. Korean wave is selling Korean culture that blends traditional and modern life style as its strength. Korean wave that makes it into the world market then not just sell Korean culture, but also accompany with the marketing of consumers products and tourism to the public in various countries. Korean wave is no longer a culture of cross-border transfers or just expansion of the entertainment industry, but it appears as the soft power of and has been strengthening in economic gains. “The Korean wave refers to the phenomenon of Korean entertainment and popular culture rolling over the world with , TV dramas, and movies. The term was first coined by the Chinese press in the late 1990s to describe the growing popularity of Korean pop culture in China”.2 In this modern era the world has not rely on military force to influence other countries in order to achieve the national interests of a state. According to Joseph Nye, power is the ability to influence others to get the desired results. Nye defines

1 Korea Today. Retrieved from http://english.visitkorea.or.kr/enu/AK/AK_EN_1_4_4.jsp 2 Korean Wave. Retrieved from http://www.korea.net/Government/Current-Affairs/Korean- Wave?affairId=209

1 soft power as the power or ability to influence others to get the desired results through the use of appeal rather than the use of force or bribe.3 Through soft power, a state may make another state admiring, want to follow or attract to them. Soft power is an application that is considered to be efficient and effective with no casualties or spend big money. Without the pressure of political, military and economic, through the culture of the Korean wave, ROK is able to achieve its national interests. Korean wave is ROK’s soft power in the form of culture, namely popular culture consumed by other countries and are also used to obtain economic benefits for ROK. The rapid development experienced by the Korean cultural products through TV dramas, movies, and music make an interesting phenomenon that is able to build the image of ROK globally. Since the late 1990s, ROK has exported its own media products to Asian countries including , China, Taiwan, and Singapore. Starting from the export of TV dramas, now grown to cultural products such as Korean pop music (K-pop), films, animation and online games. The Korean cultural products first penetrated the Chinese market with TV dramas, What is Love All About (1997) and Stars in My Heart (1997), becoming popular in . ROK sold another popular program, Stairways to Heaven to Japan in 2004. Between 2004 and 2006, two other famous dramas, and also became huge hits in Japan and Hong Kong. Dae Jang Geum has so far been aired in dozens of countries, including China, , , , Israel, , Romania, , Bosnia, , Sweden, Colombia, Peru, , the , , and New Zealand. While its popularity is mainly concentrated in neighboring Asian markets, Korean popular culture has begun spreading to more global audiences in the Middle East, Africa, Europe, and the America.4 The Korean boy groups and girl groups are the example of Korean cultural exports and also as representative cultural ambassadors of the nation. They are becoming one of the transmitters Korean wave throughout the world. Nowadays, almost all the youth familiar and recognize and Girls' Generation.

3 Joseph S. Nye, Jr. (2005). Soft Power: The Means to Success in World Politics. Retrieved from http://www.amazon.co.uk/Soft-Power-Means-Success-Politics/dp/1586483064 4 The Korean Wave. (2011).

2 With beautiful faces, trendy style, attractive appearances with fun music and dance that causes many teens attract to them. The Korean wave is becoming more boom in 2012 when pop sensation released "Gangnam Style", a catchy song with horse dance moves that became a worldwide hit. The video has watched over 2 billion views online, making Psy the most famous K-Pop singer globally. Korean music industry not only captured a large number of the Asian population but increasingly also gaining western fans. The Korean stars also have big impacts on the products that are not directly related to Hallyu, including food, fashion, make-up trends, and even plastic surgery. Along with the success of cultural products and increasing the image of ROK, consumers products are also becoming increasingly well known and get recognition from the world community. Korean companies also use this phenomenon as their marketing tool. Korean big business is making efforts to transform the Korean wave fans into their consumers of products and services. For instance, Daesang, a Korean food company, hired a popular K-Pop girl group as its models for a health drink product in Japan and Sales Increased 35 times from 2010 to 2011.5 Samsung Electronics in China successfully took advantage of Ahn Jae - wook 's - an actor from ROK, popularity by hiring him as a model of commercials for its computer monitors. Proved that K-Pop stars are very influential and has a very strong appeal. Korean wave is able to increase the public's interest to know more about the Korean culture. It is also very influential in increasing the number of Korean tourism. More and more people tend to make ROK as their destination for holiday. For example, many foreign tourists are visiting Dae Jang Geum village after watching the drama Dae Jang Geum. The production of Korean dramas became the main attraction because the story is packed with nice and in good quality. Korean dramas are always bringing the elements of culture in every film, such as the style of clothing, food, or particular areas. Things like this are able to hypnotize the audiences, thus indirectly the audiences are interests and loves what the characters do in the drama. The film industry provides a good impact to the nation, because the film can reflect the state indirectly, such as showing advanced

5 Sophie Kim. (2013) Power of culture – Hallyu, the Korean Wave. Retrieved from http://globe- one.com/power-of-culture-hallyu-the-korean-wave-4636/

3 technology, its friendly people, diverse culture, beautiful scenery that will attract interest to know more about the culture. With the success of the Korean wave that spread almost all over the world, ROK government continues to strive to maintain this Hallyu phenomenon. The government is willing to spend funds to organizations in foreign countries which participating introduces Korean culture. For example, Korean government aligned with the non-profit institutions, Korean Cultural Centers (KCC) that aim to promote Korean culture and facilitate cultural exchanges. The centers are run by the Korean Culture and Information Service (KOCIS), a subdivision of ROK's Ministry of Culture, Sports and Tourism (MCST). It operates 27 cultural centers in 23 countries around the world.6 Korean government opened a wide range of new tourist attraction associated with Hallyu to attract foreign tourists. With the increase of foreign tourists who go to ROK, the foreign exchange increased too.

1.2 Problem Identification

Today, the popularity of Hallyu is everywhere. K-pop, television dramas and movies have gained phenomenal popularity, becoming the newest engine for expanding the country's cultural exports. The boom presence and enjoyment of Korean popular culture has also transformed into preference for other Korean products and lifestyle alike, leading to increase of product sales in overseas. The growing interest in Korean culture has further triggered a rise in inbound foreign tourists. It can be seen, with the Hallyu popularity spread globally, Korean economic benefit is enormous. Economic benefits for ROK through the Korean wave is achieved not only through the profits derived from export culture but also when the popularity of Korean wave in the other countries used as a promotional tool to market products of economic value such as tourism and consumers products. ROK is able to make their culture as a soft power that can be antecedent, as a means to achieve national interest, in addition to the culture also became known by people around the world.

6 Korean Culture and Information Service (KOCIS). http://www.kocis.go.kr/eng/main.do#

4 The researcher aimed to examine how through cultural able to improve the economy of the country. Starting from exporting cultural products only in East Asia to South East Asia then almost all over the world. Simply by relying on the power of culture, ROK is able to compete with western culture and Japanese culture. The researcher will put more concern during the time frame 2002-2012 work, because in this year Korean popular culture was much favored across the globe.

1.3 Statement of Problems

Based on what have been identified above, the statement of problems of this research is as follows:

How does the Korean wave distribute and support the tourism and consumers products in ROK’s economic development from 2002 until 2012?

1.4 Research Objectives

The main objectives of this thesis are: 1. To find out how the Korean Wave distribute and support the tourism and consumers products in developing the ROK’s economy. 2. To analyze the Korean wave as a soft power of ROK.

5 1.5 Significance of Study

1. The study aims to understand the method conducted by the ROK government, corporations, Hallyu starts in carrying Korean wave to increase the economy of ROK.

1.6 Theoretical Framework

Korean popular culture such as movies, TV dramas, and music is overwhelmingly powerful. They are not only popular in terms of the fanatics of the audiences and fans, but also bring profit to the national income. Korean pop culture is dominating the music market, the fashion and beauty industry, technology industry, food industry and tourism industry. This cultural phenomenon has been shaping the image of ROK worldwide and boosting the economy itself. Korean cultural industries have become one of the contributors to the national economy. In 2004, the movie exports television programs along with tourism and K-pop products generated total revenues almost $2 billion. 7 According to statistics from the Bank of Korea's export sector of cultural and entertainment services, K-pop industry has generated $794 million in 2011 and increased 25% from $637 million in 2010 as the K-pop increasingly in demand by the international community.8 When the Asian Financial Crisis of 1997-1998, the ROK’s economy was in great depression. The state’s economy destroyed and forced the government to ask for a loan of money to the IMF. The crisis showed a weakness of ROK's economy that was too relied on chaebols (big conglomerates) like Hyundai, Samsung and LG. Kim Dae Jung, the president (1998-2003) initiated by forced the development of IT and cultural content industry. In early 2000, the Korean government began targeting the export of Korean popular culture as a new economic initiative. Proved successful with the proliferation of TV dramas and

7 Asia Goes Crazy Over K-Pop. (2006). Retrieved from http://english.chosun.com/site/data/html_dir/2006/01/07/2006010761003.html 8 K-Pop Leads Record Earnings from Cultural Exports. (2012). Retrieved from http://english.chosun.com/site/data/html_dir/2012/02/07/2012020700892.html

6 video games to China. In 2005, government spending nearly $1 billion investment fund to support the pop industry. 9 To create the K-Pop stars, record labels recruited teens and prepared them for years before unveiled to the public. Hallyu become a highly funded and most organized national marketing campaign. With the aim of making ROK as the world's top exporter of pop culture, now ROK has received $4.6 billion in revenue in 2012 whereas the pop culture was zero in the early 1990s.10 Economic benefits for ROK through the Korean wave is achieved not only through the profits earned from the export of cultural products, but also when the popularity of Korean wave in other countries used as a promotional tool to market products of economic value such as tourism and consumers products. Utilization of the Korean wave as a soft power in economic gains for ROK can be seen from the use of the Korean wave popularity as a tourist attraction in tourism industry and marketing of cultural products and consumers products to various countries. Korean cultural heritage shows its rich culture and traditions of the past. ROK is famous for many historical relics, which are still standing strong, and much in demand by foreign tourists. Korean cultural relics include music, art, literature, dance, architecture, clothing and cuisine that offer a delightful combination of tradition and modernity. Triumph of Korean culture at this time would not have been possible without their traditional culture and arts that were built by ancient Koreans who have high artistic sensibility. Reflected in the variety of artifacts in the Three Kingdoms Period that becomes richer and developed through periods of Unified Silla (676-935), Goryeo (918-1392) and (1392-1910).11

There is some priceless cultural heritage of ROK, which has officially list by UNESCO. There are 11 World Heritage Sites listed by UNESCO, namely, Seokguram Grotto and Bulguksa Temple, Janggyeonpanjeon Depositories of

9 South Korea’s Soft Power. Soap, Sparkle and Pop. (2014). http://www.economist.com/news/books-and-arts/21611039-how-really-uncool-country-became- tastemaker-asia-soap-sparkle-and-pop 10 Euny Hong. (2014). Korean Cool is The Ultimate National Marketing Poly. Retrieved from http://www.newsweek.com/2014/08/15/korean-cool-ultimate-national-marketing-ploy- 263505.html?piano_t=1 11 UNESCO Heritage in Korea. Retrieved from http://www.korea.net/AboutKorea/Culture-and- the-Arts/UNESCO-Treasures-in-Korea

7 Haeinsa Temple, Jongmyo Shrine, Palace, Hwaseong Fortress, Gyeongju Historic Areas, Gochang, Hwasun and Ganghwa Dolmen Sites, Jeju Volcanic Island and Lava Tubes, the Royal Tombs of the Joseon Dynasty the, Historic Villages of Korea: Hahoe and Yangdong, and .12 World Heritage Sites is involving of contributors to the economic progress of the nation. Palaces in city center are a unique characteristic, where traditional building located in downtown, which is becoming modern. It becomes an attraction for foreign tourists to visit ROK that offers a blend of modern and traditional culture, which is very harmonious.

Tourism is a very promising one thing that can benefit the economy of a country. By selling the country's culture can attract enthusiastic people to visit the country. More and more people are traveling cultural tourism; it is evident that the tourism industry turns into an industry that is very famous and important. Tourism in ROK today has been influence by Korean wave. Few of the famous Korean dramas made some cultural heritage sites as the shooting location of its drama. Based on this, more and more people are keen to visit the shooting location. In 2006 until 2011 listed Taiwanese Tourists who visited ROK increased due to a very famous TV drama aired in Taiwan. The successful TV dramas improve the country's tourism, especially from Taiwan. With its rich cultural heritage along with modern technology, ROK is growing its trade and exchange. Being one of the poorest countries in the 1950s, now ROK's role as a player on the global economic stage. Korean wave as an attraction in the tourism industry is reflected in the use of the Korean wave as promotional icons of ROK tourism organizations. In 2010, through the Ministry of Culture, Sports and Tourism (MCST) and the Korea Tourism Organization (KTO), the government-regulated tourism within ROK. They aimed to Attract 10 million visitors. The Visit Korea Year Campaign, held from 2010 through to the end of 2012.13 Proven successful, it generated $13 billion in income and established ROK as one of the top 20 tourist destinations in the world by the year of 2012.14 The tourism industry has

12 Republic of Korea. Retrieved from http://whc.unesco.org/en/statesparties/kr 13 Visit Korea Committee. Retrieved from http://english.visitkoreayear.com/english/vkcinfo/vkcinfo_02_01_01.asp 14 Visitor Arrivals, Korean Departures, Int'l Tourism Receipts & Expenditures. Retrieved from

8 been recognized as a valuable national resource. Because of it’s potential to incur the positive economic, social and, cultural effects.

Export of Korean culture in the Korean wave is not only beneficial in terms of export profits of cultural products, but also improve the marketing advantage of other consumers products to international markets. The popularity of cultural products in the Korean wave, such as TV dramas, familiarizes the public with Korean lifestyle portrayed in the drama. Habituation is to encourage public consumption of the products used in the depiction of Korean lifestyle, for example with the latest technological gadgets or clothes and cosmetics to get looks like Korean people. Media has a strong influence to affect other countries. For developing countries that receive the Korean wave, they will think that Korean popular culture is very impressive and attractive. So they want to imitate the culture that emerged from the media. Korean culture can easily be accessed and enjoyed through television and YouTube. With the help of government funding and technological advancement of the Korean wave that develops, it will satisfy the desires of the community on Korean wave. Communities in developing countries that have been dominated by the Korean culture, would prefer to purchase products or goods from ROK. Whether in the form of lifestyle and technology, all imitate the Korean culture. In addition, the Korean wave has become a weapon of soft power. The Korean wave helps expand the Korean ideology while the Korean pop culture is the Korean instrument to develop the nation's economic.

http://kto.visitkorea.or.kr/eng/tourismStatics/keyFacts/visitorArrivals.kto

9 1.7 Scope and Limitations of the Study

This study is only focuses on the role of the Korean wave as ROK’s soft power, which become the strength of the state economy through the spread of cultural products. Time framework of scope and limitations of this study is during 2002 when the Korean wave as a term coined to describe the influence of Korean culture in other countries until 2012 when the term of Korean wave is become more well-know because of the global boom of Psy’s Gangnam Style music video that has been watched for more than 2 billion times on YouTube.

1.8 Research Methodology

This study uses a qualitative method. According to Steven J. Taylor and Taylor and Robert Bogdan, qualitative research as research that produces descriptive data in the form of written or spoken words of people and behaviors that can be observed.15 This research method is more in-depth analysis techniques, which are collecting data on individuals’ personal histories, perspectives and experiences. Process undertaken in this research requires various times and conditions that, this research will have an impact on the design of the study and ways to implement are also differ or flexible. The types of data generate are notes, audio recordings and transcripts. The strengths of qualitative method are the data based on human histories are more powerful and the data that is discovered is more detail.

15 Steven J. Taylor, Robert Bogdan. (1998). Introduction to Qualitative Research Methods. Retieved from http://www.amazon.com/Introduction-Qualitative-Research-Methods-Steven/dp/0471168688

10 1.9 Thesis Structure

Chapter I – Introduction

The first chapter describes the purpose of this thesis by provide a clear understanding and background. Provide further information and details by written and describe the problems of identification, statement of the problem, research objectives, significance of the study, the theoretical framework and research methodology.

Chapter II – Korean Wave as a Soft Power of ROK

This chapter explains the beginning of the of Korean wave and development of the Korean Wave that first appeared in the late 90s in China then spread and become globally prominent. Describes how the Korean wave turn into a soft power for ROK. Later explained actors involved, agenda setting and attraction in the development of the Korean wave.

Chapter III – The Economic Development of ROK

The emergence of Korean Wave is making the economic of ROK stable. Starting from the Asian Financial Crisis 1997-1998, Korean government push to produce TV dramas, movies, online games to help restore the economic of ROK, which at the time was going down. Economic benefits to the country through Korean wave obtained from the export of cultural products, the tourism industry and commercial products, which become very popular in other countries.

11 Chapter IV – The Role of Korean Wave in the Economic Development of ROK

Due to the influential of Korean wave, tourism and consumers products are also contributing to the economy growth of ROK. In 2010, the government with the MCST and the KTO, regulated a tourism campaign within ROK, which was known as the Visit Korea Year 2010-2012. This campaign proved successful with the increasing number of foreign tourists visiting the country.

Chapter V – Conclusion As the last chapter, it explains the conclusion of the contribution of Korean Wave as soft power of Korea in order to develop the country’s economy.

12 CHAPTER II KOREAN WAVE AS A SOFT POWER OF ROK

Through Korean wave, ROK is using this cultural phenomenon as an instrument to achieve its government policy. By spreading Korean pop culture to the various countries that have a positive impact that will develop the country's economy. This chapter discusses about the Korean wave as a soft power of ROK. Brief explain the history of the emergence and triumph of the rise of Korean wave, the explanation of the roles of Korean wave as an instrument of ROK's soft power, the circulation of Korean wave in Asia and global, in the end of this chapter, about the role of media in helping to spread the Korean wave.

2.1 What is Korean Wave? Korean Wave or Hallyu is a term to describe the development and popularity of Korean entertainment and popular culture that hit various parts of the world with music, TV dramas and movies. This term appears and given by the Chinese journalists in the late 1990s to explain the development of Korean pop culture in china.16 Korean wave extend its reach to almost all countries in Asia through Korean dramas Winter Sonata, Endless Love, What is Love All About? and Dae Jang Geum. These Korean dramas became an early opener introduction of Korean Wave and Korea to global. Several television stations in several countries in Asia, especially in Southeast Asia began aggressively airing Korean dramas or movies. It can be mention that the airing of movies and TV dramas were successful and managed to attract the attention of public. Korean pop music, refereed to K-pop also has spread throughout Asia to Latin America, Africa and the Middle East. The development of digital technology and online media can make Korean Wave easily spread almost

16 Sophie Kim. (2013). Power of culture – Hallyu, the Korean wave. Retrieved from http://globe- one.com/power-of-culture-hallyu-the-korean-wave-4636/

13 throughout the country in the world.17 The boom of the Korean wave becomes a tool for spreading the country's cultural exports and ROK’s image building in the world. The gaming industry is also included in the component of the Korean wave. In 2004, Wemade Entertainment exported online games for the first time through 'The Legend of Mir 2'. Online games were in great demand by the international communities that made a very outstanding record included, as many as 70,000 people log-in to this online games, 60% of market share and 2 trillion won in sales in the Chinese market. Then in 2002, 'Ragnarok Online' which was first launched in Japan and Taiwan began reaching 77 countries and obtained 1 trillion won. 18 Proved that exports and sales of online games are not lost to Korean dramas and K-Pop.

2.1.1 The Emergence of Korean Wave Korean Wave was first known in China by the end of 1990. In June 1997, a Chinese television station, China Central Television Station (CCTV) broadcast the first , What is Love All About. Chinese audiences really like the drama due to the sophisticated lifestyles of Korean people in the drama. The drama was getting a second-highest rating for foreign programs.19 In 1997, Stars in My Heart aired in China and Taiwan. This drama became very popular. Korean dramas became more famous and began broadcasting to various other countries such as Vietnam, Singapore, Japan, , and . Winter Sonata aired in Japan in 2004 became the beginning of Korean wave in Japan. This drama received tremendous response. Bae Yong-joon, the leading actor of the drama became a huge star in Japan. He was also received a Japanese nickname "Yon- sama" (‘Yon’ from his name ‘Yong-joon’ and Japanese honorific "same"). Japanese Journalists also created nicknames for Bae Yong-joon, the Yon-sama

17 Korean Wave. Retrieved from http://www.korea.net/Government/Current-Affairs/Korean- Wave?affairId=209 18 Games, the Original Star of the Korean Wave, Feels No Envy of Psy. Retrieved from http://eng.bing.co.kr/webzine/jumpingKview.aspx?idx=5&1& 19 Doobo Shim, Hybridity and the rise of Korean popular culture in Asia. Retrieved from http://ruraleconomics.fib.ugm.ac.id/wp-content/uploads/Doobo-Shim-Hybridity-and-the-rise-of- Korean-popular-culture-in-Asia.pdf

14 Syndrome, the Yon-sama Social Phenomenon, the Yon-sama Religion and the Yon-sama Disease. Winter Sonata popularity in Japan produced 84 million won in tourism. The locations of the drama have become Korean wave tourism destinations such as Chuncheon, Nami Island, and YangPyeong Ski Resort. Export Korean dramas increased dramatically in 2003, earned $37.5 million compared to $12.7 million in 1999.20 With the success of Korean dramas, Korean singers began to enter the Chinese market, Hong Kong and Taiwan. Korean singers or groups who represent the first-generation Korean wave were H.O.T, SES, Clon, Baby VOX and NRG. H.O.T already became famous in China and Taiwan in 1998. The popularity of H.O.T marked the beginning of famous singers and other Korean music groups. They were well known to occupy the top charts music in China, Taiwan Hong Kong and Southeast Asia. Thousands of fans came to their concert and local radio began to play their songs. ROK was expanding the influence of the wave by continue exporting Korean TV dramas, movies, music to various countries in Asia, America and Europe. Various journalists found the export of TV dramas; movies and music gave effect on the promotion of another cultural products such as traditional food, language, and the tourism industry.21 As Korean dramas always carries an element of culture in every film, for example, fashion style, typical food or famous area in ROK, it is able to attract the audience so indirectly they will like what do the characters in the drama. Korean dramas indirectly demonstrate advanced technology, friendly society, beautiful scenery that is able to attract the interest of people to know more about the Korean culture.

20 The Korean Wave, A New Pop Culture Phenomenon. 21 Cho Hae-Joang, Reading the “Korean Wave” as a Sign of Global Shift”. Retrieved from http://www.music-ir.org/mirex/abstracts/2012/CK1.pdf

15 2.1.2 The Triumph Rise of Korean Wave The remarkable rise in popularity of Korean popular culture is a Korean drama Winter Sonata and the explosion of K-pop. Winter Sonata is a TV drama series produced by the Korean Broadcasting System (KBS). Unwittingly Winter Sonata has opened up new opportunities for political, social and economic change state.22 Directed by Yoon Seok-ho, Winter Sonata was first aired in Japan in 2003 by NHK satellite channel, NHK BS2. Impressions Winter Sonata in Japan became a start symbol of Korean wave across Asia. Winter Sonata tells a complicated love story like any other Korean dramas. This drama was very popular in Japan and in the interest of middle-aged women. The beauty of the main actor, Bae Yong-joon, attracted them. The number of TV programs in export increased dramatically between 1995 and 2002. This made the reduction of the numbers of imported TV programs. The exports of Korean dramas has increased every year, in 2008 earned $105 million into $107 million in 2009 and in 2010 to $133 million. In 2004 when Bae Yong-joon visited , 3,000 middle-aged women were waiting for his arrival at Narita airport. Did not want to miss the opportunity, the Japanese travels were providing tour packages to visit the set of Winter Sonata in ROK. Winter Sonata’s popularity that became phenomenal has scored a lot of new stories, thawed the strained relations because of cultural barriers with Japan, provided good image for ROK and promoted tourism.23 Its director, Yun Seok Ho, received a prestigious award by the MCST for having contributed to promoting cultural export products. In 2009, the single "Gee" of Girls' Generation has reached over 73 million times on YouTube. In 2011, the song was released in Japan and got the first double platinum for Korean girl group. Korean native music has been growing internationally since then such as the United States, Europe, the Middle East, and South America. In the same year, Girls' Generation held a concert with other K- pop singers in New York's hallowed Madison Square Garden. Not unexpectedly

22 Diana Lee. (2005). Winter Sonata Drama Fever. Retrieved from http://uniorb.com/ATREND/Japanwatch/wsdramafever.htm 23 23 Toru Hanaki, Arvind Singhal, Min Wha Han, Do Kyun Kim and Ketan Chitnis. Hanryu Sweeps East Asia, How Winter Sonata is Gripping Japan. Retrieved from http://utminers.utep.edu/asinghal/Reports/Hanaki_Singhal_Han_Kim_Chitnis_Gazette_2007 .pdf

16 discharged ticket sales are not left. Not a few viewers who come are non-Asian.24 Same story with the song "Gangnam Style" of Psy are rampant in 2012. From the beginning, this song has been viewed by more than 2 billion times.25 This video tells the story of the lives of residents who are living in ROK elite area, Gangnam. This music video was becoming increasingly attractive because of Psy’s unique dance style like he was riding a horse. Due to this music video Psy received many valued awards as the best music video of the MTV Europe Music Award. From children up to US President Barack Obama has contracted the Gangnam Style dance. Upon this success Psy received a prestigious state orders of cultural merit in 2012. Psy was awarded the Order of Cultural Merit Okgwan of the MCST for its contribution to increasing global awareness of Korean pop music and attracted to ROK.26

2.2 ROK’s Soft Power Through Korean Wave Power is the ability to make other people do the things that we want. There are three ways to affect someone’s behavior: threats ("sticks"), payments ("carrots") and attraction that the make others want what you want ("soft power"). Soft power is the power, which easily attracts the attention of other countries with the approach without coercion and without threats to achieve what is desired by a country. Soft power is not only the ability to move people with arguments but also the ability to attract people. There are three sources of soft power of a country: (1) culture, (2) political values, and (3) foreign policies. (Nye 2004). Korean Wave has become ROK’s soft power with popular culture sources. Popular culture is exported to various countries in the form of TV dramas, movies and K-pop. Korean art, crafts and cuisine have also been spread around the world. Korean popular culture combines technology; modernity and tradition so enthused by the community because of its uniqueness. Korean popular culture easily

24 Jon Matsumoto/ (2012). The K-pop Explosion. Retrieved from http://www.grammy.com/news/the-k-pop-explosion 25 Gangnam Style Music Video ‘Broke’ Youtube View Limit. (2014). Retrieved from http://www.bbc.com/news/world-asia-30288542 26 Lee Hyo-won, South Korean Culture Ministry To Honor Psy. (2012). Retrieved from http://www.hollywoodreporter.com/news/gangnam-style-star-psy-be-387570

17 accepted by the public because it was created for various groups and generations in particular among younger people in neighboring Asian countries.27 Because of Korean wave, many young people are interest in Korean studies and the . In the end, ROK’ soft power has a significant impact on trade, tourism, and academy which can provide economic benefit and development of the country

2.2.1 The Form of Korean Wave TV dramas and movies are Korean wave form, which was first recognized by the society that in turn was followed by the expansion of Korean pop music, known as K-pop. It started with the export of Korean TV dramas to China since then expanded to exports to elsewhere in Asia. Nowadays, the Korean wave are enjoyed everywhere in the world. One of the Korean movies blockbuster was Shiri. The film premiered in other Asian countries such as Hong Kong, Japan, Taiwan and Singapore. The film became the beginning of the influx of Korean films in the international market. Since then, Korean movies have been dominated cinemas in Asia and began to enter the American and European markets. Fox and Columbia have taken Korean movies for global redistribution. Hollywood studios was also eager to buy the copyright of Korean movies to be regenerated.28 As explained previously, Korean dramas have been playing an important role in the Korean Wave. Korean dramas became number one in the entertainment industry export. International audiences are very attracted by the drama that tells the story of romance and the history of the Korean kingdom. In each drama there are sixteen to twenty-four episodes. Each episode ranged up to 50 minutes. Another important aspect in Hallyu phenomenon is K-pop. K-pop is a kind of music such as dance, , electro pop, hip-hop, rock, ballads, R&B and pop music. K-pop is attracting the attention of many people not only in their country of origin but also the attention of international communities. This is because the K-pop provide not only pleasant to hear audio but also visually

27 Youna Kim, The Korean Wave, Korean Media Go Global. (2013). Retrieved from http://www.amazon.com/The-Korean-Wave-Internationalizing-Studies/dp/0415712793 28 Doobo Shim, Hybridity and the rise of Korean Popular Culture in Asia http://ruraleconomics.fib.ugm.ac.id/wp-content/uploads/Doobo-Shim-Hybridity-and-the-rise-of- Korean-popular-culture-in-Asia.pdf

18 pleasing. Such as Super Junior and Girls' Generation, which the personnel has beautiful faces and still young that is why so lots of people are interested. GO, researcher at Samsung Economic Research Institute, explains the growth of Hallyu through four stages: 1. Popularity of Korean pop culture. 2. Purchase of Korean popular products. 3. Purchase of other Korean products. 4. Favorable impression of Korea.29 The first stage is people start to attract by the popular culture, which is including TV dramas, films and K-Pop. Second stage is people who attract to popular culture is start to buy products related to Hallyu, such as K-Pop music albums, soundtrack CDs of popular Korean dramas, tour to ROK, buy the goods that is wearing or busing by the actors in TV dramas, visit the location sites of the dramas. The third stage, Hallyu enthusiasts start to buy goods that are not related to Hallyu such as gadgets, food, cosmetics and fashion items. The last one is the people have a pleasing feeling on ROK.

2.2.2 Korean Culture Exports ROK first started exporting Korean dramas to neighboring countries such as China and Taiwan. The exports were expanding to almost all over Asia. Japan became number one country that imported Korean cultural goods. North America was the second largest state continent that imported of Korean cultural content. Lately, Korean pop music has become the most popular aspect of Korean wave in the world. Due to the boom of Psy’s Gangnam style music video on YouTube, more international community interest in K-Pop. Korea Creative Content Agency (KOCCA) is an agency that is promoting cultural industry by integrating Korea Culture and Content Agency, Korea Game Industry Agency, Cultural Contents Center and Digital Contents Business Group of IT Industry Promotion Agency. 30

29 Milim Kim, The Role of the Government in Cultural Industry: Some Observations From Korea’s Experience. Retrieved from http://www.mediacom.keio.ac.jp/publication/pdf2011/10KIM.pdf 30 KOCCA, Introduction. Retrieved from http://eng.kocca.kr/en/contents.do?menuNo=201433

19 Table 1. Korean export of cultural contents in 2012 Market No. of No. of Sales Exports Imports Difference Companie Workers (1Million ($1,000) ($1,000) between s Won) exports and imports Publication 26,702 198,262 21,097,28 245,154 314,305 69,151 7 Manhwa 8,856 10,161 758,525 17,105 5,286 11,819 Music 37,116 78,402 3,994,925 235,097 12,993 222,104 Games 16,189 95,051 9,752,538 2,638,91 179,135 2,459,781 6 Movie 2,630 30,857 4,404,818 20,175 59,409 39,234 Animation 341 4,503 521,005 112,542 6,261 106,281 Broadcast 945 40,774 14,182,47 233,821 136,071 97,750 9 Advertisem 5,804 36,424 12,483,80 97,492, 779,936 682,444 ents 3 Characters 1,992 26,897 7,517,639 416,454 179,430 237,024 Knowledge 9,696 69,961 9,529,478 444,837 508 444,329 Information Contents 1,316 20,145 3,029,140 149,912 453 149,459 Solution Total 111,587 611,437 87,271,63 4,611,50 1,673,78 2,937,718 7 5 7 Source: KOCCA31 The table above shows the statistics of Korean content industry in 2012. There are five main exports of Korean content industry, which are manhwa (Korean comics), music, games, movie and animation. In 2012, manhwa export achieved $17.1 million while sales obtained 758.5 billion won. Since the previous year, manhwa market has experienced speedy growth. Music market, obtained 3.994.9 billion won in sales and $235.10 million in export. The music market has increase 11.3 per cent in sales and steady growth in exports: $16.47 million in 2008, $31.27 million in 2009, $83.26 million in 2010, $196.11 million in 2011,

31 Statistics/Trends. Retrieved from http://eng.kocca.kr/en/contents.do?menuNo=201450

20 and $235.10 million in 2012. The game market obtained 9.752.5 billion won in sales and $2.638.92 million in export. The games market has recorded the largest growth in 2012. The animation market obtained 521 billion won in sales and achieved $112.54 million in exports. The animation market also has been growing in sales from 404.8 billion won in 2008 to 521 billion won in 2012.

2.2.3 Korean Cultural Policy The beginning of the emergence of Korean cultural policy because the issue of cultural identity. This was due to Koreans had to face the cultural discontinuity of some harsh situations that occur in South Korea such as the Japanese colonialism (1910-1945), the separation of Korean peninsula (1945- present), Korean War (1950-1953), rapid economic development and the emergence of western culture (1960-present). In order to return their cultural identity, the first president Syngman Rhee (1948-1960) stressed the importance of culture in the development of the state. In the reign of Park Chung Hee (1961-1979), he rose up economic growth as a priority. He established laws, institutions, organizations and public funds for cultural policy more active. Park Chung Hee published "the first five-year master plan for cultural development" implemented during the period 1974-1979. Priority objective of this plan is to build a cultural identity. Thus, during the period 1974- 1978, 70% of public expenditure on cultural sector is distributed to folk art and traditional culture.32 Chun Doo Hwan's reign (1980-1988) was a period in which the government provided support for the arts in ROK. At this time the art was no longer just about the cultural heritage or traditional art, but evolved into contemporary art and everyday life of society. Chun Doo Hwan government published two comprehensive plan for cultural policy, namely, "the new plan for cultural development" (1981) and "The cultural plan in the sixth five-year plan for economic and social development" (1986). The main objective of this policy is to

32 Haksoon Yim. Cultural Identity and Cultural Policy in South Korea. Retrieved from http://cau.ac.kr/~seronto/KOREAN%20CULTURAL%20IDENTITY.pdf

21 establish cultural identity, promote art excellence, improve the welfare culture, promote local culture, and expand cultural exchanges with other countries.33 Roh Tae Woo's reign (1988-1993), he founded the "ten-year master plan for cultural development", which was well known by the term "culture for all the people". The main goals of this plan were, building a cultural identity, promote art excellence, improve the welfare culture, promote local culture, facilitating international cultural exchange, develop culture media, and achieve reunification ethnicity. Kim Young Sam administration (1993-1998) coined the slogan "Creation of the New Korea" as a political campaign slogan that aims to improve the status of South Korea in the global community. Kim Young Sam stressed that democratic culture, the creativity of the people, local culture, cultural industries and cultural tourism, unification, and the globalization of Korean culture as the main goal of cultural policy. He also stressed that the economic importance of culture and the arts. He came up with a plan "new five-year plan for promoting cultural development" (1993), "the master plan for cultural welfare" (1996), and "the cultural vision 2000" (1997). Cultural policy objectives continued to be important during the administration of Kim Dae Jung (1998-2003). He set "the five year plan for cultural industries" 1999), "the vision 21 for cultural industries" (2000), and "the vision 21 for cultural industries in the digital societies" (2001). The term cultural identity became an important basis for government subsidies to continue to encourage and develop the culture industry.34 In the reign of Lee Myung Bak (2008-2013), Hallyu became increasingly famous. He also continued the policy that has been set by the previous governments. The purpose of Lee's cultural policy or White Papers is to promote cultural content. Its vision was to become a country that was known for its creative culture with soft power by reducing piracy, copyright protection, improve creativity skills, strengthen competitiveness and help the expansion widely. Then, widening the scope of content by adding education, tourism, medical, fashion, design, food and others. The government also aimed to increase sales and export in 2012.35

33 Ibid. 34 Ibid. 35 Yurena Kalshoven, Hallyu Power: A Focus on Soft Power in Lee Myung Bak’s Cultural Policy.

22 To improve the ROK’s soft power and has label as a creative culture nation, the government was trying to improve the technology, increasing support for the content, discover new creative talents and look for new areas of business. White Papers are also very focused on world culture industry. ROK would focus to a sector or region in the world if it has a great development. For example, China and India, which have a huge numbers of population and experiencing rapid growth. Focus on digitalization and improve the online market for music and movie markets, as well as against piracy. The government was not only focus on developing countries with large markets, but also to regions with large growth that Korea has the opportunity to dominate the markets. The bigger the economy, the large of share countries contribute in culture industry, and the greater its growth in the economy leads to increasingly large growth in the industry.

2.3 The Expansion of Korean Wave Nowadays a lot of people are become familiar with the term Korean wave or Hallyu. Matters concerning ROK have already become a trend lately. This phenomenon of Korean popular culture began to spread to many countries in the world. Starting with TV dramas exports to China and Japan then spread to Americas and Europe. The spread of the Korean wave is now not only includes TV dramas, movies and music but also venturing into fashion, cuisine and cosmetics.36 Korean popular culture spread in a simple way but managed by the government seriously. Korean TV programs have become a daily show for the public audience of Hallyu. From TV dramas, movies, variety shows until music chart programs. South Korea was able to easily deliver TV programs that capable to entertain the audience.

2.3.1 Korean Wave in Asia Begins with TV dramas export to China, Japan and Southeast Asia, now Korean Wave has spread throughout most of Asia. China, Taiwan, Japan, Vietnam, Singapore, Malaysia, the , Indonesia and Thailand have

36 Ibid

23 become a major area of Korean wave become popular. In China and Taiwan, Korean TV dramas and boy groups are very famous. When the boy groups released albums or singles, they occupied the top charts in China and Taiwan. It makes the frequency of the K-pop starts visit China and Taiwan to hold a concert or a fan meeting. A famous boy group from SM Entertainment, Super Junior made a sub-unit, Super Junior M that consisting of Chinese and Korean members. They also put out an album with Chinese language. It also proved to be the best- selling album sales in the market. In Japan likewise China and Taiwan, TV dramas and K-pop are very attractive to Japanese society. Many K-pop stars held concerts in Japan for days and all the ticket concerts were sold out. Japan is a country where the boy group TVXQ (Dongbansinki) and the girl group Girls' Generation (SNSD) most in demand. Girls' Generation held their first concert in Japan in 2011 and attended by tens of thousands of fans. SNSD also released its first Japanese tour DVD in 2012 and occupied the top five in the Japanese charts. A total of 148.718 copies of the DVD sold out.37 In Indonesia, the numbers of Hallyu enthusiasts has been growing drastically because the numbers of Korean people is bigger than any foreigner in Indonesia that is more than 50,000 people. Indonesian teenagers now prefer to listen to K-pop songs and dress similar to the K-pop stars. Indonesian teenagers are also increasingly interested in studying the Korean language in Korean Cultural Center in . Not only that, they are begin to use the basic Korean language to talk with their friends. Some TV channels in Indonesia have been widely broadcast Korean TV programs. Even many girl groups and boy groups that followed the K-pop stars such as Sm*sh are much in demand by the Indonesian teenagers.

2.3.2 Korean Wave in Global In Iran, the ratings drama Dae Jang Geum or Jewel in the Palace was 86% nationwide and more than 90% in Tehran. Thanks to this drama, a lot of Iran

37 Stewart Ho. (20120). Celebrity Yahoo: SNSD’s DVD, Blu-Ray Disc Sells Big in Japan in 2012. Retrieved from https://ph.celebrity.yahoo.com/news/snsd-s-dvd-blu-ray-disc-sells-big-011017004.html

24 people become interested Koreans. In 2011, the Iranian Government Officials, Including foreign ministry, ministry and national oil company came to the event broadcast in Korean embassy in Tehran to mark the end of the drama Dae Jang Geum. In addition to Iran, Dae Jang Geum was aired in other Middle Eastern countries Reviews such as Jordan, Saudi Arabia, and .38 America and Europe received the Korean Wave in mid-2000 through TV dramas, K-pop, animation and games. The most popular animation in ROK "Pororo the Little Penguin" successfully sold to more than 120 countries, including in Europe, namely and Britain. The young artists with attractive appearances, unique styles and good dance skills are a major component in the k- pop music. In general, K-pop music similar to western music in terms of genre, namely, pop, rap and ballads, except in the case of the lyrics are of course taking Korean language. Now and girl band like TVXQ, Super Junior, Wonder Girls, SNSD, and Rain is able to become a favorite and popular all over the world, not just in Asia. To introduce the K-pop in Europe and America, the steps are each group has one or two people who are able to speak English. By this can simplify to communicate with international fans. In 2011, one of the largest Korean entertainment agencies SM Entertainment held the SM Town concert in concert hall. The concert was featuring almost all the SM Entertainment’s Famous musicians. A total of more than 1,500 fans gathered at the airport to welcome them. A total of 7,000 concert tickets sold out in just 15 minutes. Countless cover dance and flash mob demonstration has done in Peru, , , Switzerland, USA, Canada and France. This shows their admire on K-Pop and demand the K-Pop starts to visit their countries.39 The year 2012 was the year for Psy who sings the song "Gangnam Style". The music video has become a worldwide hit. It became the most-watched video of all time on YouTube and topped the iTunes charts. The song has topped music charts around the world, Including Canada, the UK, Norway, Finland, Denmark,

38 Psy’s “Gangnam Style” Taking the World by Storm. (2012). Retrieved from http://www.businesskorea.co.kr/article/848/news-psys-%E2%80%9Cgangnam- style%E2%80%9D-taking-world-storm 39 Korean Wave: Treasure of Korea Tourism. Retrieved from http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/docpdf/koreanwave.pdf

25 Australia, Honduras and Israel.40 There were many parodies of videos released and the flash mob events throughout the world. The successful of this song because of its catchy beat and Psy's dance moves were very entertaining, which helped to defeat the language barriers. The success of "Gangnam Style" assist the government in building ROK’s image in the world and advancing soft power through the Korean Wave.

2.3.3 The Role of Media in Expanding Korean Wave Media is one of the main actors in spreading the Korean wave. Impressions popularity of Korea’s entertainment increased significantly because of the role of the media that has helped the flow of the culture. With the media, Korean wave is able to penetrate the countries in Asia, America and Europe. Nowadays, media becomes very important in human life. The purpose of media is to provide society about events that are happening. The media also plays a role in improving a country. For example, Korea is using the media to spread the Korean wave to achieve government policy in improving the country's economy. The successful of Korean wave is due to the role of the Internet and social media. Growing technology media such as Twitter, YouTube, Facebook, and websites containing about Korean are very helpful in spreading Hallyu throughout the world. Since the end of 2007, Hallyu has experienced remarkable change with the expansion of social media. Social networks such as Cyworld, Twitter, Facebook and the American-based social media have taken important roles in spreading K-pop to fans around the world. Social networks became the most influential platform and the fastest in the spread of Korean popular culture globally. 41 This shows that the changes of export of cultural industries from export goods, to export that can be viewed by global society in media are more pleasured rather than purchase goods.

40 Psy’s “Gangnam Style” Taking the World by Storm. (2012). Retrieved from http://www.businesskorea.co.kr/article/848/news-psys-%E2%80%9Cgangnam- style%E2%80%9D-taking-world-storm 41 Dal Yong Jin. (2012). Hallyu 2.0: The New Korean Wave in the Creative Industry. Retrieved from http://quod.lib.umich.edu/i/iij/11645653.0002.102/--hallyu-20-the-new-korean-wave-in-the- creative-industry?rgn=main;view=fulltext

26 Hallyu fans are also contributing the expansion of the Korean wave on the Internet by uploading photos, news anything related cultural contents, which also become a producer and receiver. Due to this, fans that are far outside the Asian continent are able to receive news about the Hallyu through the Internet. Fans who are become the producer of cultural contents in the Internet also start to make their own websites featuring Korean TV programs that are translated to English. For example, one of the famous website Kshowonline that distribute cultural contents every once a week diligently upload a Korean TV program named Running Man, which has been translated into English. This action is able to attract more new Hallyu fans. On YouTube, K-pop has its own channel which the videos of the K-pop singers have topped 60 million views. From 2002 until 2007, according to International Federation of the Phonographic Industry the sales of CDs in Korea were dropped because of the highest number of piracy in music industry. Then, the Korean music industry showed up with the idea to promote more focusing on digital distribution and touring. With the help of social networks that has been spread globally, K-pop singers got attention and attract people outside of Asia.42

42 Choe Sang Hun, Mark Russel. (2012). Bringing K-pop to the West. Retrieved from http://www.nytimes.com/2012/03/05/business/global/using-social-media-to-bring-korean-pop- music-to-the-west.html?pagewanted=all&_r=0

27 CHAPTER III THE ECONOMIC DEVELOPMENT OF ROK

The end of the Korean War in 1950 to 1953, has made ROK became one of the poorest countries in the world almost as poor as Bolivia and Mozambique. Until a decade, ROK still lags behind North Korea. The economy was still relying on the farm. With strong leadership attitude and clean government, ROK now has become a state with strong economy. ROK is changing rapidly from the poorest to one of the richest and most advanced country in the world. Starting from a state that only left by debris from the former war, ROK now has become a prosperous state, richer than New Zealand and . Miracle on the Han River was a term given for rapid economic growth in the field of industry and the growing sophistication of technology. For 50 years, the Korean economy has increased by about seven per cent. In 2010, ROK became the first country to host Asian G-20 summit.43 The export of Korean electronic products such as Samsung and LG has been increasing and mastered the world, ranging from mobile phones, plasma and LCD televisions. LG has become a company in the world's largest plasma panel. In the automotive field, Hyundai and Kia can grow and develop into a major automotive company in the world. Through the Korean wave, Korean cultural industry also contributes to the economic development. Where the production of Korean movies and music on exports to countries such as Hong Kong, Vietnam, Thailand, Indonesia, Japan, China, Taiwan, United States, Latin America and the Middle East. This chapter will discuss on ROK during the Asian Financial Crisis 1997- 1998 and how the Korean government to face the crisis. Then ROK becomes the State's top exporter. Also describe not only the technology industry but also the export of cultural industry that began to almost every country in the world especially in Asia. In the end of this chapter, will discuss the impact of the Korean

43 Marcus Noland. (2014). Six Markets to Watch: South Korea, The Backwater That Boomed. Retrieved from http://www.foreignaffairs.com/articles/140335/marcus-noland/six-markets-to-watch-south-korea

28 Wave to the tourism industry in ROK that able to improve the economy of the State.

3.1 Asian Financial Crisis 1997-1998 Before the onset of the Asian Financial Crisis in 1997-1998, Thailand, Malaysia, Singapore, Indonesia, Hong Kong and ROK have been registered into countries with the most impressive economic growth rates in the world. Between June 1997 and January 1998 financial crisis stroked and swept off those developed countries’ economy. This crisis occurred from one State to another when the local stock markets and currency markets exploded. Stock markets in many countries had lost more than 70 per cent of their value, their currency had decrease value versus the US dollar by the same amount, and the leaders of these countries should ask for financial assistance with a large amount to the International Monetary Fund (IMF).44 The Asian financial crisis occurred with the two parts of decrease value that had occurred since 1997. The first occurred with drastic decreased the value of Thai baht, Malaysian ringgit, Philippine peso, and Indonesian rupiah. The second part occurred in Korean won, Singaporean dollar, and the Hong Kong dollar. The government tackled this crisis with sold their currencies by sold foreign exchange reserves and raised interest rates, in matter made the economic growth slow.45

3.1.1 The Asian Financial Crisis 1997-1998 Stroked Korea ROK was one of the worst countries affected by the Asian financial crisis 1997-1998. Crises occurred with some bankruptcies by chaebol that had been borrowing money on a large scale from the previous years to finance their industries. During the 1990s foreign banks had been eager to lend money to Korean Banks and chaebol in the form of US dollars. Debts that used to finance

44 Charles W.L.Hill. The Asian Financial Crisis. Retrieved from http://www.wright.edu/~tdung/asiancrisis-hill.htm 45 Dick K. Nanto. (1998). CRS Report, The 1997-1998 Asian Financial Crisis. Retrieved from http://fas.org/man/crs/crs-asia2.htm

29 their industries began to pile up and collapsed. Economic development became slow and imports of goods to ROK increased. Hanbo, a Korean-owned steel company became the first that faced bankrupt. At the beginning of the manufacture of Hanbo in 1993, the company was on target to become number five in the world's largest steel company. However, this target was difficult to be achieved due to the fact the demand for steel was not much at the time. Korea's debt problems began to deteriorate in early 1997 due to Hanbo’s debt of $6 billion. Hanbo collapsed raise a presumption that the government forced the Korean banks to provide loans to Hanbo to undergo their projects but appeared also alleged that Hanbo who bribed the government and force the government to Korean banks to provide loans to Hanbo.46 After the bankruptcy of Hanbo more chaebol bankrupted. In mid-1997, as many as eight top chaebol had to shut down the companies because they could not pay huge amount of loans from previous years to fund their projects. A total of 14 Korean industrial conglomerates bankrupted during the Asian financial crisis 1997-1998. Big company such as Daewoo was bankrupt too. Samsung was able to survive because they did not have huge debts. In late 1997, the IMF provided rescue packaged to ROK at $55 billion. They reached a deal where ROK had to agree with the IMF's agreement which IMF wanted ROK to open their economy and banking system to foreign investors, hold chabeol to reduced lending to banks and published the financial statements and annual independent external audits.47

3.1.2 ROK Government in Tackled the Asian Financial Crisis 1997-1998 The Asian Financial Crisis 1997-1998 hit ROK made the government look for ways to restore the economy of the State. At that time the government of Kim Dae Jung realized that the cultural sector could be an instrument to help the economy that being destroyed by promoting the cultural industry globally. Incidentally at that time one of the main goals of cultural policy was to increase exports in the cultural industries. Spread of the vast and growing audience who

46 Charles W.L.Hill. The Asian Financial Crisis. Retrieved from http://www.wright.edu/~tdung/asiancrisis-hill.htm 47 Ibid.

30 enjoyed Korean TV dramas and improvement of Korean pop culture in Asian was not only seen as an instrument to improve the country's economy, but also as a method to strengthen a positive image of ROK and expand the recognition globally.48 Kim Dae Jung issued the first legal provision regarding the cultural industry in 1999, namely, Framework Act for the Promotion of the Cultural Industries.49 The purpose of this Act Framework is: “Article 1 (Purpose) The Purpose of this Act is to lay the groundwork for the development of cultural industries and enhance the competitiveness thereof, thereby contributing to the improvement of the quality of national cultural life and development of the cultural industries.”50 It explains that the cultural industries are industries that consist of planning, development, manufacturing, production, distribution, consumption of cultural products and services that can provide economic benefit to the nation. Cultural industries include industries related to movies, music, games, broadcast pictures, cultural properties, cartoons, characters, animation, edutainment, mobile cultural contents, design, advertising, performance, artworks, craftworks, publishing, printing and periodicals. In the early days as a president, Kim Dae Jung declared himself as "culture president". He said that he would devote himself as a president of the culture who would develop cultural industries and made a nation's leading industries of the 21st century. Following the Asian Financial Crisis 1997-1998, Kim Dae Jung claimed that: “Our primary task is to overcome the economic crisis, which requires reform programs. The objective of the reform movement should be to

48 Hyee Kung Lee, Lorraine Lim. (2014). Cultural Policies in East Asia: Dynamics Between the State, Arts and Creative Industries. Retrieved from https://books.google.co.id/books?id=PCFvBAAAQBAJ&printsec=frontcover#v=onepage&q&f=f alse 49 World CP, International Database of Cultural Policies. Retrieved from http://www.worldcp.org/southkorea.php?aid=423 50 WIPO, Republic of Korea. Retrieved fromhttp://www.wipo.int/wipolex/en/text.jsp?file_id=316502

31 achieve development by promoting industries related to knowledge, information, culture and tourism (Korea Economic Daily. 15/08/98).” He explained that ROK should turn into a knowledge-based nation, build a nationwide information infrastructure and improving science and technology. He also saw that the cultural and tourism industries could play an important role in Korean industries in the 21st century. The government began to develop cultural industries into industries that provide economic value to the State. The status of cultural industry as a significant source of the economic benefits of State, made the MCST provides investment fund of $3.846 million to fund the promotion of the film, animation, games software, publishing, music and broadcasting industries.51

3.2 ROK is a Top Exporter Country In 2010, ROK became the 7th largest exporter, 10th largest importer state in the world. With total trade amounting to 884.2 billion, ROK is known as an export-orientated country. 52 ROK is very famous for producing electronics, automobiles, machinery, petrochemicals, ships and robotics. Samsung and Hyundai greatly contribute to the economic development of the country. Annual sales for Samsung had increased to $213 billion in 2013 but recently Korean popular culture has also become the best-known export, which also contributes to economic development. In the early 2000s, the exports of Korean cultural products generate as much as $500 million. Increased in 2011 by more than $4 billion, according to KOCIS. According to the MCST in 2012, Hallyu’s economic benefit value as $83.2 billion which $5.26 billion was expected to be achieve from music industry.53

51 Kisung Park. (2007). Who Controls the Korean Policy Making?. Retrieved from https://books.google.co.id/books?id=d4BscRJcIMkC&pg=PA134&lpg=PA134&dq=kim+daejung +cultural+industry&source=bl&ots=xPf2IBgUzi&sig=4NSXEEjftgpLGwXrAh2j7Anxo9s&hl=en &sa=X&ei=exkRVbfgKZePuATgr4DwCg&ved=0CEcQ6AEwBQ#v=onepage&q=kim%20daeju ng%20cultural%20industry&f=false 52 Economy Watch, South Korea Export, Import & Trade. (2010). Retrieved from http://www.economywatch.com/world_economy/south-korea/export-import.html 53 Melissa Leong. (2014). Financial Post. How Korea Became the World’s Coolest Brand. Retrieved from http://business.financialpost.com/news/retail-marketing/how-korea-became-the-worlds-coolest- brand

32 The export activity is one of the major factors in terms of economic development of a country. ROK has managed to become a state industry with export base and policies for entering the international market. ROK’s strategy to promote international cultural industry in the 1990s has been proven to be effective. Korean wave is a Korean culture products that are packaged in a modern and marketed abroad has become one of the central component exports of ROK.

3.2.1 Korean Cultural Products Have Spread Across The World Korean cultural products have spread across the world accused by the continuous investment by the government of the Korean wave. Investments made by the government for many years proved to be very valuable. Knowing that the cultural industry can be one of the instruments to improve the country's economy, which fell after the Asian Financial Crisis 1997-1998, the government intentionally supports its future prosperity on the development of cultural product abroad. As stated by Euny Hong, the author of the book The Birth of Korean Cool: How One Nation is Conquering the World Through Pop Culture: “Korea is throwing all of its weight and billions of dollars into making itself the number one of exporter of pop culture in the world.”54 The Korean culture industry has been exporting its products massively began to East Asian countries as China, Taiwan and Japan and continuously to the regions beyond East Asia. More than half of Korean culture products have gone to Asian countries and also to North America. Countries such as Iraq and Saudi Arabia also imported more than $10 billion worth of cultural products in 2010.55 From 2008 to 2011, various types of Korean cultural products have already exported. Korean publishing, music, gaming and movies have achieved 82.614 won and exported $4.159 billion in 2011. From 2007 until 2011, the exports of Korean cultural products have expanded by 25.2 per cent per year on average.56

54 Ibid. 55 Veramalla Anjaiah. (2011). The Jakarta Post. Korean Culture Spread Across Globe. Retrieved from http://www.thejakartapost.com/news/2011/07/18/korean-culture-spreads-across-globe.html 56 Korea, a Nation of Cultural Exports. Retrieved from http://www.korea.net/NewsFocus/Policies/view?articleId=98635

33 In the Middle East and North Africa, Korean dramas quite well received because, Korean dramas featuring the importance of strong family values, such as harmony, strong morality and respect to family. In addition, Korean dramas are also showing modern displays but not leave its traditionalists and indicate plot of interesting love stories without having to show sexually explicit. In North America, the large number of demand to watch Korean dramas has created DramaFever.com that provide free, convenient and legal way to watch Korean dramas online. Previously, as many as 6 million viewers in the United States illegally watch Korean dramas every month.57 The distribution and trade of Korean cultural products has attracted major attention for two reasons. First, the Korean wave has become very well known and wide spread and become a source of rising commodity export of ROK. The economic potential of cultural industries can already be seen since the late 1990s started by Korean TV dramas exports to China and Japan. Government who created cultural policy and the chaebols realize that Hallyu able to increase the export of other products such as electronics. With the popularity of Hallyu, the government and the chaebols utilize it as something that is strategic to increase international trade.

3.2.2 The Favorable of Korean Consumers Products in Overseas Korean cultural exports not only benefit from the advantages export of cultural products, but also improve the marketing advantages of commercial products to international markets. Korean dramas have been culturing audiences with Korean-style lifestyle shown in the drama. It encourages audiences to consume products that are used in the depiction of Korean-style lifestyle in TV dramas; such as goods are used as clothing, gadgets and cosmetic in order to get the same style with the actors and actress in the TV dramas. This happens because the image and charm of Korean celebrities who use these products become more attractive to audiences. This is evidence that the Korean dramas have the power

57 Claire Weber. K-Pop, K-Dramas, Hallyu – South Korean Culture Around the Globe. Retrieved from http://geography.about.com/od/southkorea/fl/K-Pop-K-Dramas-Hallyu-South-Korean-Culture- Around-the-Globe.htm

34 and effect in human life. The rises of international audiences who watch it make them desire to consume other Korean products that able to increase sales such as fashion, food technology, music and others. Korean dramas have become a medium for chaebols to start promoting their products by funding and sponsoring the television industry. Large companies such as LG and Samsung are taking advantages of this opportunity by using the Korean wave as marketing tools in sales. The popularity of Korean dramas is enjoying not only in Asian countries but also extends to Europe, North America and Middle East, which is a medium that is very profitable for the business. Korean dramas turn into a primary choice as an entertainment so that not a few who enjoy it. Making it an excellent medium for promoting a product because it can provide a sense of want, interest and have those products. Korean dramas are the starting point of Korean wave that gives a positive impact to the economy of the State. Korean dramas broadcast globally also resulting in benefits for Korean tourism and exports of cultural products. Marketing of commercial products using the popularity of Korean culture on Korean wave is giving benefits to Korean companies. LG Electronics has support some Hallyu concerts to increase its brand awareness overseas and employed the K-Pop starts to promoting 3D TVs and Smartphone in order to aim more younger consumers globally. Similar to LG Electronics, Samsung, in 2011 the sale of Galaxy S II Smartphone sold out in Japan due to the Smartphone promotion recruited Girl group KARA who is very popular in Japan. Most consumers Samsung in Japan are young people aged from 20 to 30 years old. The reason they buy Samsung products is already clear that their interest in K-Pop stars. One of the biggest Korean cosmetic companies, Amore Pacific is instantly grow in chine due to Chinese fans that has been attracted to K-Pop and Korean actors. Ma Young Sam, ambassador for public diplomacy stated that: “As foreigners pay more attention to the singer, slowly they develop a liking for Korea… and if they like Korea, they will buy more Korean things. This is what we are trying to promote.”58

58 Sterling Wong (2013) Riding the Korean Wave: How K-Pop Stars Have Helped Lift Samsung to the Top in Asia. Retrieved from

35 This occasion had helped the exports rose 50 per cent in the first six months in 2011.59 In conclusion, the influx of Korean cultural industry into the international market has opened up opportunities for Korean industries to achieve more benefits from the Hallyu’s fans.

3.3 The Increasing Number of Tourism Industry in Developing Economic Growth of The Country Utilization of the Korean wave as a soft power in obtaining economic benefits for ROK achieved not only derived from the export of cultural products, but also when the popularity of Korean wave in other countries used as a promotional tool to market the products of economic value such as tourism. KTO uses the Korean wave as an attraction in the tourism industry. Since the popularity of Korean dramas such as Winter Sonata and Dae Jang Geum, KTO is providing detailed information about the location filming dramas because the number of foreign tourists who want to visit the setting.60 This is called Hallyu tourism. Where the audiences of the Korean wave come visit South Korea to do the tour activities related to Hallyu. Hallyu tourism can be said to have occurred at the time of the drama Winter Sonata popularity in the early 1990s so many Japanese tourists traveling to South Korea to visit the filming location of Winter Sonata in Nammi Island. The rampant of Korean dramas that enjoy by some countries, this raises the curiosity of the people who watch Korean dramas to be able to visit places that are used in the shooting for the Korean dramas. It is then lure the audiences to visit the tourist attractions that are often used as the setting of a drama. With the increasing number of foreign tourists who visited ROK, also increase the country's foreign exchange.

http://www.minyanville.com/sectors/technology/articles/How-Samsung-Has-Ridden-the- Korean/1/31/2013/id/47767?refresh=1 59 K-Pop Stars Lure Japanese Consumers to Buy Samsung, LG Goods. (2011). Retrieved from http://www.bloomberg.com/news/articles/2011-07-25/k-pop-stars-lure-japanese-consumers-to- buy-samsung-lg-goods 60 Visit Korea. Korean TV Drama. Retrieved from http://english.visitkorea.or.kr/enu/CU/CU_EN_8_5_1_1.jsp

36 Tourists from Japan became the most visitors to ROK. The table below describes the number of Japanese tourists who visited South Korea from 2008 until 2012.

Table 2. Numbers of Japanese Tourists Visited Korea from 2008-2012 Year Total visitors Growth from previous year (%) 2008 2,378,102 6,4 2009 3,053,311 28,4 2010 3,023,009 -1,0 2011 3,289,051 8,8 2012 3,518,792 7,0

Source: Korean Trade Organization61

From 2008 to 2012 Japanese tourists who visited ROK increased from about 2.4 million to 3.5 million. Japanese visitors spend more than $800 million in 2011. Much of Japanese visitors were spending their money to entertainment and shopping. 62 In Japan there are many Hallyu fans ranging from adolescence to elderly. The teens are very fond of girl groups and boy groups like Girls' Generation and TVXQ. Meanwhile, the elderly such as housewives very fond of Korean dramas as noted previously when Winter Sonata and other Korean dramas became very popular. In 2011, in addition to entertainment and shopping reasons, it turned out as many as 120,000 visitors from Japan visited ROK to do plastic surgery.63 K-Pop is a main part in the Korean tourism. Continuous funding from the Korean government for the K-Pop highly effective and profitable, this method is able to attract many foreign tourists to visit ROK. There are stages in individuals who enjoy K-Pop and finally land their feet in ROK land.

61 Uk Hoe, Terence Roehrig. (2014). South Korea’s Rise, Economic Development, Power, and Foreign Relations. Retrieved from https://books.google.co.id/books?id=RejCAwAAQBAJ&printsec=frontcover#v=onepage&q&f=fa lse 62 Ibid. 63 Ibid.

37 First, in the beginning K-Pop enthusiast only just listening to Korean pop music, watch music videos and music chart shows on YouTube. Then, they begin to interest in all of the things that related to "Korean". As it starts to try Korean food, buy Korean makeup, imitate Korean fashion, learn to understand the Korean language and would like to know more about Korean culture. With these five reasons, they wish to visit ROK. When they reach in ROK, they begin to do a variety of activities and tours to satisfy their desires to attain such as watching K- Pop concerts, do gourmet and shopping tour, enroll in Korean university to undertake short-term language courses and explore the cities by culture travel. These stages have experienced by almost all teenagers who interest in K-Pop. The researcher has also experienced it, where the researcher started to interest in K- Pop then decided to do a short-term language courses at Kookmin University in Seoul in summer of 2012. Each year more and more foreign teenagers also got interested and want to learn Hangeul. Many of them also began to follow the Test of Proficiency In Korean (TOPIK), which is similar to the TOEFL and IELTS. Interest in Hallyu indeed very magical that makes the audience can interest in anything about Korean and makes them very eager to visit Korea. In the year 2011 was also a successful year for Korean tourism. A total of 9.8 million foreign visitors have visited ROK.64 KTO is actively promoting ROK as a tourism destination as 'Visit Korea Year' from 2010 to 2012. In addition, the campaigns like 'Korea, Be Inspired', 'Korea Grand Sale' and 'Expo 2012 Yeosu'.

64 Visa, Tourism Outlook: South Korea. (2011). Retrieved from http://usa.visa.com/download/corporate/_media/south-korea-tourism-outlook-english.pdf

38 Table 3. Visitor Arrivals to Korea From 2006 Until 2012 Year Visitor Arrivals (Number) 2006 6,155,047 (2.2%) 2007 6,448,240 (4.8%) 2008 6,890,841 (6.9%) 2009 7,817,533 (13.4%) 2010 8,797,658 (12.5%) 2011 9,794,796 (11.3%) 2012 11,140,028 (13.7%) Source: KTO65

The Visit Korea Committee (VKC) stated that the main objective of ‘Visit Korea Year’ was to attract more international visitors to make ROK as their tourism destination. During the campaign from 2010 until the end of 2012, 10 million international visitors embarked to ROK. 66 Since 2007, ROK used the slogan "Korea Sparkling" in promoting Korean tourism but in 2010 the slogan was changed to "Korea Be Inspired" because the previous slogan was less related to tourism and has received criticism. The new slogan created by the idea that collected by the staff members of KTO and advertising experts highlight the intention that when the international visitors go to ROK they will obtain new inspiration. This new slogan also connected to KTO ‘s aim in 2010 to attracted 8.5 million international visitors.67 Korea Grand Sale is the largest shopping festival conducted almost every year is devoted to international visitors arranges by the VKC and sponsored by the MCST. The festival was carried out for 52 days in major cities such as Seoul, Busan and . In contrast to other shopping festivals, the festival also

65 Visitor Arrivals, Korean Departures, Int’l Tourism Receipts and Expenditures. Retrieved from http://kto.visitkorea.or.kr/eng/tourismStatics/keyFacts/visitorArrivals.kto 66 Visit Korea Committee. Retrieved from http://www.vkc.or.kr/en/about/committee.asp 67 Korea Be Inspired Selected as New Tourism Slogan http://www.koreatimes.co.kr/www/news/nation/2010/02/113_60112.html

39 provides the international visitors with cultural experiences such as K-Pop concerts, Korean movie events and fan meetings.68 In 2007, ROK was appointed as the State to hold 2012 Expo. Yeosu, a Southern city located alongside seaside became a host city in 2012 EXPO. The last decades Yeosu started more evolved and much visited by tourists because of the beauty of the sea that lures visitors with international ocean resort. Theme and focus on EXPO 2012 Yeosu was about marine where this theme became the first theme in the expo to discuss about ocean, coasts and islands. The main objective of this international exposition was to give the message that human being and ocean are linking to one and another. Humans are expected to help the stricken marine threats. With international exposition was expect to be established global cooperation to restore endangered marine restoring such as, more of rising sea levels, the extinction of biodiversity and pollution that threaten marine and coastal. The exposition also taught people on how to use the ocean and coasts properly without harm.69 Prime Minister Kim Hwang Sik stated that: “It was a meaningful and successful an Expo as any in the past.”70 A total of 8 million visitors came on day 93 to celebrate the closing of Expo 2012 Yeosu by hold fireworks show.71 In addition to providing information about climate change is happening and how to preserve marine life, this expo also presents cultural performances and entertainment. In addition to visitors who came from within the country such as Seoul and Busan, a total of 400,000 international visitors also came to the Expo 2012 Yeosu. 150,000 of the international visitors came because of cultural performances held by the famous K-Pop stars.72 It can be said that the Expo 2012 Yeosu was a heaven for K-Pop stars enthusiasts. K-Pop concerts were hold at the expo invited lot of K-Pop stars such as as Rain, , Girls Generation, Lee Seung Gi, F(X) and much more

68 The Korea Grand Sale 2012 http://www.kto.or.th/news/the-korea-grand-sale-2012 69 The Living Ocean and Coast: EXPO 2012 Yeosu Korea http://www.unesco.org/new/en/natural-sciences/ioc-oceans/single-view- oceans/news/the_living_ocean_and_coast_expo_2012_yeosu_korea/#.VSJIAZPLdNs 70 Yeosu Expo Meets Visitor Target, Wraps Up With Grand Fireworks Show http://english.chosun.com/site/data/html_dir/2012/08/13/2012081300608.html 71 Ibid. 72 Ibid.

40 making it the highlight of Expo 2012 Yeosu.73 The Hallyu popularity also used in Expo 2012 Yeosu as a lure to bring more visitors from national and international. Explosion of the song Gangnam Style by Psy popularized in 2012 also boosted tourism statistics to ROK. In 2012 as many as 110.229 of UK tourists visited ROK, 10.6% Increased from 2011.74 Ramy Salameh, spokesperson for the Korean Tourism Organization in stated that: “A 10,6% increase in arrivals from the UK to ROK is a clear reflection on the growing popularity of the destination, helped in no small party by Psy’s Gangnam Style. Gangnam has really just been the icing on the cake though – the K-Pop genre has been growing in popularity for at least a couple of years.”75 Tourism boom in 2012 due to the enormous contribution of the Korean wave was especially because of Gangnam Style. In addition, medical tourism and the ease of obtaining a visa is also a major contributors in 2012. Nation branding is done by ROK to be the city hosts a wide variety of international events such as the Expo 2012 Yeosu, the G20 Summit and the 2012 Seoul Nuclear Security Summit has also made a number of foreign tourists visiting ROK. In 2012, Korean tourism was scoring a total of 10 million international visitors. 76 According to the World Travel Tourism Council (WTTC), the total profit Korean tourism in 2012 has reached $13.1 billion.77

73 Yeosu Expo K-Pop Concerts http://english.visitkorea.or.kr/enu/FU/FU_EN_15.jsp?cid=1628236 74 Dailymail.UK, Holidays Gangnam Style! South Korea Records Best Ever Year for Tourism in 2012 http://www.dailymail.co.uk/travel/article-2256548/Gangnam-Style-boosts-tourism-South- Korea.html 75 Ibid. 76 Tourists Arrivals in Korea Top 10 million http://english.visitkorea.or.kr/enu/FU/FU_EN_15.jsp?cid=1757869 77 Gangnam Brings Fans-and Tourism Revenue-to Korea http://www.cnbc.com/id/100399553

41 CHAPTER IV THE ROLE OF KOREAN WAVE IN THE ECONOMIC DEVELOPMENT OF ROK

Since its inception in the late 19990s cultural industry has become a target in improving the country's economy that affected by the Asian Financial Crisis 1997-1998. Through cultural policy, Kim Dae Jung wished to increase the exports of Korean cultural industry, starting with Korean dramas exports to China and Taiwan. Cultural phenomenon continued until the widespread of Hallyu in various countries in the world. Hallyu had expanded to Korean music and any other cultural products. Explosion of the Korean wave has been giving a positive impact on the State. Cultural industry has become into a growth engine for the Korean economy.

4.1 The Contribution of Korean Wave to the Economy of ROK The progress of Hallyu can be divided into three stages. First, the birth of Hallyu in the late 1990s with the explosion of Korean drama What is Love and Korean boy group H.O.T in China and Taiwan. Second, Hallyu was increasingly growing number of Japanese society, China and Southeast Asia who love Korean dramas Winter Sonata and Dae Jang Geum. Third, Hallyu was getting settled in the late 2000s with a growing number of emerging idol groups who captivate teens in China, Japan, Southeast Asia, Europe and North America. Korean wave that initially only Korean dramas, is now beginning to grow into a K-Pop, fashion, makeup, language, cuisine and any other cultural products. Since the beginning of its appearance, Hallyu had give many positive effects for the economy provide such explosion of Korean tourism, increasing sales of products related to Hallyu and marketing tools for business. In 2004, thanks to the popularity of Korean drama, Winter Sonata and the actors, Bae Yong Jun and Park Yong Ha, has helped Korean exports and tourism amounted to $2

42 billion.78 Credit to Hallyu, Korean cultural products trade has been advancing and rising. Between 2004 until 2008, the cultural industry increased by more than 6.3 per cent.79 According to the Korea Customs Service, exports to the activities of the State in the Middle East, America and Asia have increased steadily every year. Exports numbers increased 50% to Mexico, Peru and . While in Iran, Saudi Arabia and Iraq numbers of exports reached $10 billion.80 In Iraq, the use of consumer goods increased a lot thanks to the views of Korean drama Dae Jang Gum. Consumer goods exports totaled $750 million. Exports of home appliances products and beverages also Increased drastically. Since 2007, the exports of consumers goods in Iran increased by 46.3 percent and reached $1 billion. As in Iraq, the exports volume of home appliances, cars, cosmetic products and beverages keep increasing. In 2011, the cultural contents such as music, animation, comics, films and games to reach $ 4.3 billion. Game increased exports reached 48.1 per cent drastic reach $2.34 billion. While cartoon exports increased by 42 per cent reaching $ 392.27 million. According to the Export-Import Bank of Korea, in 2012 benefits from the popularity of Hallyu abroad has reached 150 billion won.81 It has proved that the growing popularity of the Korean wave in the world, also increasing the exports of cultural products, which provide economic benefits to the state and improve the nation branding in the world community. There are three types of tourists who do Hallyu tourism. First, tourists who travel just to enjoy the Hallyu contents or Korean culture as it comes to concerts, buy K-Pop stars’ albums, buy merchandise of K-Pop stars, follow the fan meetings and do the tour. Second, tourists who come to ROK just want to visit the places related to Korean dramas or films. For this, the tourism business and the Korean government have provided a package of tourism that visits the popular dramas and films' sites. As did the KTO during the Winter Sonata that made many Japanese tourists visited its location. Lastly, tourists who do shopping activities

78 Jin Young Kim, Jong Oh Lee. Korean Pop Culture: A Decade of Ups and Downs. Retrieved from http://www.sersc.org/journals/IJMUE/vol9_no3_2014/13.pdf 79 Ibid 80 Korean Exports Increase, Thanks to Korean Wave. (2011). Retrieved from http://www.mcst.go.kr/english/koreaInfo/news/newsView.jsp?pSeq=2128 81 Jin Young Kim, Jong Oh Lee, Korean Pop Culture: A Decade of Ups and Downs http://www.sersc.org/journals/IJMUE/vol9_no3_2014/13.pdf

43 and other Korean cultural products like buying cosmetic products, Korean food, clothes, bags, gadgets and any other Korean label products. The Hallyu tourism enthusiasts certainly did not spending small amounts of money. Starting from the purchase of tickets airlines to ROK with an average use of Korean airlines, selecting tourist attractions in ROK accommodate by public transport, buy Korean food for daily meals, toured with tourism companies, buy Korean cultural products and Korean products and visit other tourists attractions. This naturally gives the advantage of income for the State. Due to the Korean wave, almost all components in ROK such as the tourism industry, food industry, technology industry, music industry, and retail industry also get huge advantages. Increasing number of tourists who come to visit ROK, the greater their contribution to the national income, the more advance and develop country economy and the higher country's foreign exchange.

4.1.1 The Support of Tourism, Korean Cultural Products and Consumers Products to ROK’s Economy Korean tourism has increased every year since the beginning of the Korean wave popularity. Hallyu tourism that has done by the most international visitors also can provide many benefits to the state. Due to the Korean wave, tourism has become a device to improve the economy. Tourism industry has contributed to the economic development of the State. Hallyu tourism has done by people who want to taste the Korean pop culture and cultural contents as well as Korean traditional culture. International visitors who come to ROK definitely want to come visit locations drama, watch K-Pop stars performance, and join anything events related to Hallyu. It is clear that the Hallyu fans that are doing travel to Korea will also certainly purchase Korean products such as fashion items, cosmetics, and more.

Table 4. The Economic Development Related to Korean Wave 2002-2012 Year Tourism Korean Cultural Products and Consumers Products 2003 • The exports of

44 Korean dramas obtained $37.5 million. 2004 • The popularity of • Products that Korean drama, related to K-Pop Winter Sonata has generated total contributed to the revenue $2 exports and billion. tourism amounted $2 billion. 2004 • Between 2004 until 2008, the exports of cultural products increased steadily every year. The exports number increased 50% to Mexico, Peru and Brazil. • In Iran and Saudi Arabia and Iraq, the exports of cultural products reached $10 billion. • In Iraq, the use of consumers products increased due to Korean dramas. Consumers

45 products exports totaled $750 million. 2007 • The exports of consumers products in Iran increased 46.3 % and reached $1 billion. 2008 • Korean dramas generated $37.5 million. 2009 • Korean dramas generated $107 million. 2010 • From 2008 until • Korean dramas 2010, Japanese generated $133 tourists visited million. ROK increased • Iraq and Saudi from 2.4 million Arabia imported to 3.5 million. more than $10 billion worth of cultural products. 2012 • Visit Korea Year • Advantages from 2010-2012 the popularity of campaign Hallyu have generated $13 reached $150 billion and billion. attracted 10 million foreign tourists. • Established ROK

46 as one of the top 20 tourist destinations in the world. • Expo 2012 Yeosu, 150,000 of foreign tourists came due to the Hallyu performances. • 110,229 UK tourists visited ROK because of the popularity of Psy’s Gangnam Style. • According to World Travel Tourism Council, total profit of tourism has reached $13.1 billion.

4.1.2 Visit Korea Year 2010-2012 In 2010 and 2012, ROK held a campaign "Visit Korea Year". The program was inaugurated on November 11, 2009 in the center of Seoul Cheonggye Stream. More than 2000 people attended the opening of this campaign. The purpose of this campaign was to encourage international visitors to visit ROK. This campaign

47 also targeted to attract as many as 10 million tourists from around the world and raise the profits of tourism to $13 billion.82 There were four ambassadors in order to promote this program. The PR ambassadors were Bae Yong Joon who is very influential actor in the Korean wave star of Winter Sonata, Kim Yuna is a young figure skater Korean influential in the development of sport. He became even more famous by the world after getting the gold medal in the 2010 Vancouver Olympics, Pororo is a very famous cartoon character. Pororo the penguin has been watched in more than 80 countries, and the last Korean girl group that is very well known, Girls' Generation were also instrumental in the development of the Korean wave in the music industry.83 Various kinds of events has been prepared for the Visit Korea Year 2010- 2012 as Seoul Design Fair which was held on 17th September 2010 ~ 7th Oct 2010 at Jamsil Sports Complex and Downtown Seoul, Daegu IAAF World Championship 2011 held on 27th August 2011 ~ 4th September 2011 in Daegu Stadium, Yeosu EXPO 2012 held from May 12th ~ 12th August 2012 in Yeosu, Korean Wave Festival held for 7 days in Gyeongju, Haenundae PIFF Night, held in October 2011 at Haeundae beach, Busan, Korea Food and Tourism Festival held on 21st October 2010 ~ 27th October 2010 in Jeonju and Korean Grand Sale held from November 2010 ~ February 2011.

82 Visit Korea Year 2010-2012. Retrieved from http://www.visitkorea.com.my/news/visit-korea-year-2010-2012-5.html 83 PR Ambassadors of Visit Year Korea. Retrieved from http://english.visitkoreayear.com/english/vkcinfo/vkcinfo_03_04_01.asp

48

Source: Visit Korea Year

There were four major international festivals during the Visit Korea Year 2010-2012, the first Busan International Fireworks Festival held in Busan on 26th October to 27th October 2012. In addition to fireworks show, K-Pop stars' fan meetings are also held during the festival and also K-Pop Concert, held at Busan Asiad Main Stadium featuring TVXQ, Teen Top, IU, Brave Guys, DJ DOC, Leesang and Jungin. Second, the Korean Food Festival held in the city of Jeonju on 18th October to 22nd October 2012. The festival showcases some best Korean foods. Third, Hallyu Dream Festival held on 21st September to 23rd September 2012 in Gyeongju. Hallyu Dream Festival enlivened by the appearance of the famous K-Pop stars such as Super Junior, After School, BEAST, FT Island, Miss A, Son Dam Bi, 2NE1, 2PM, and much more. Hallyu Dream Festival has attracted many tourists from abroad. The K-Pop stars are important actors in the development of the Korean wave throughout the world. Finally, Jeju Olle Walking Festival held on 31st October to 3rd November 2012 in Jeju Island. Jeju Island has been three times awarded the title of UNESCO's Natural Science

49 Sectors. Enjoy the beauty of Jeju Island to explore the natural beauty that is available there.84 Visit Korea Year 2010-2012 was a very successful campaign as successful in reaching its target with the arrival of as many as 10 million international visitors. The reason of success of this campaign was the Korean wave that is becoming more popular in the world. The government managed to attract Hallyu enthusiasts to visit Korea and hold large festivals related to the Korean wave that can satisfied them. To complete this campaign by gave satisfaction to the international visitors by presented food festivals, music festivals, movies festivals and shopping festival.

84 Upcoming Festivals. Retrieved from http://english.visitkoreayear.com/english/infor/infor_01_12_01.asp

50 CHAPTER V CONCLUSION

Korean wave is become ROK’s soft power in the form of culture that produced for the consumption of international communities. The government and the media become actors in helping to promote and fund cultural products in the form of TV dramas, music, films, animations and games. Beside those cultural products, other Korean products and industries include cosmetics, fashion, electronics, cuisine and tourism has also become popular and much in demand by the international communities as it relates to Hallyu. Through cultural policy, provision law in supporting the development of Korean culture and financial assistance from the government, international communities able to receive the Hallyu by exports. Korean wave is used to achieve objective such as economic benefits to ROK. Following the Asian Financial Crisis 1997-1998, the government was targeting the cultural industry as a growth engine for the ROK’s economy by increasing exports of cultural products. Korean dramas and K-Pop has been much in demand by international communities that make more and more foreign tourists come to Korea or Hallyu tourism. It also makes them to buy another Korean products that are not directly related to cultural products. The government is also spread the Korean wave in order to influence communities’ daily lives. They are become naturally consume, Korean culture, goods and services in their daily life. Through K-Pop stars and Korean celebrities on TV dramas and films can shaped the thought of Korean wave consumers into "Korean label". In result, they are beginning to purchase what celebrities use such as gadgets in Korean dramas, buy K-Pop concerts tickets, try Korean food and make ROK as a destination for vacation. Through the Korean wave, the activities of cultural exports, tourism and the purchase of Korean products have contributed and improve the country's economy. Since the emergence of Korean wave in the late 1990s, the Korean economy has increased steadily.

51 BIBLIOGRAPGHY

• Asia Goes Crazy Over K-Pop. (2006). Retrieved from http://english.chosun.com/site/data/html_dir/2006/01/07/2006010761003.h tml • Charles W.L.Hill. The Asian Financial Crisis. Retrieved from http://www.wright.edu/~tdung/asiancrisis-hill.htm • Cho Hae-Joang, Reading the “Korean Wave” as a Sign of Global Shift”. Retrieved from http://www.music-ir.org/mirex/abstracts/2012/CK1.pdf • Choe Sang Hun, Mark Russel. (2012). Bringing K-pop to the West. Retrieved from http://www.nytimes.com/2012/03/05/business/global/using-social-media- to-bring-korean-pop-music-to-the-west.html?pagewanted=all&_r=0 • Claire Weber. K-Pop, K-Dramas, Hallyu – South Korean Culture Around the Globe. Retrieved from http://geography.about.com/od/southkorea/fl/K- Pop-K-Dramas-Hallyu-South-Korean-Culture-Around-the-Globe.htm • Dal Yong Jin. (2012). Hallyu 2.0: The New Korean Wave in the Creative Industry. Retrieved from http://quod.lib.umich.edu/i/iij/11645653.0002.102/--hallyu-20-the-new- korean-wave-in-the-creative-industry?rgn=main;view=fulltext • Diana Lee. (2005). Winter Sonata Drama Fever. Retrieved from http://uniorb.com/ATREND/Japanwatch/wsdramafever.htm • Dick K. Nanto. (1998). CRS Report, The 1997-1998 Asian Financial Crisis. Retrieved from http://fas.org/man/crs/crs-asia2.htm • Doobo Shim, Hybridity and the rise of Korean Popular Culture in Asia http://ruraleconomics.fib.ugm.ac.id/wp-content/uploads/Doobo-Shim- Hybridity-and-the-rise-of-Korean-popular-culture-in-Asia.pdf • Economy Watch, South Korea Export, Import & Trade. (2010). Retrieved from http://www.economywatch.com/world_economy/south-korea/export- import.html

52 • Euny Hong. (2014). Korean Cool is The Ultimate National Marketing Poly. Retrieved from http://www.newsweek.com/2014/08/15/korean-cool- ultimate-national-marketing-ploy-263505.html?piano_t=1 • Gangnam Style Music Video ‘Broke’ Youtube View Limit. (2014). Retrieved from http://www.bbc.com/news/world-asia-30288542 • Games, the Original Star of the Korean Wave, Feels No Envy of Psy. Retrieved from http://eng.bing.co.kr/webzine/jumpingKview.aspx?idx=5&1& • Haksoon Yim. Cultural Identity and Cultural Policy in South Korea. Retrieved from http://cau.ac.kr/~seronto/KOREAN%20CULTURAL%20IDENTITY.pdf • Hyee Kung Lee, Lorraine Lim. (2014). Cultural Policies in East Asia: Dynamics Between the State, Arts and Creative Industries. Retrieved from https://books.google.co.id/books?id=PCFvBAAAQBAJ&printsec=frontco ver#v=onepage&q&f=false • Jeongsuk Joo. (2007). Beyond Binaries: Globalization, The Korean Film Industry and Hollywood Hegemony. Retrieved from https://books.google.co.id/books?id=unH2e3rp9K8C&printsec=frontcover #v=onepage&q&f=false • Jin Young Kim, Jong Oh Lee. Korean Pop Culture: A Decade of Ups and Downs. Retrieved from http://www.sersc.org/journals/IJMUE/vol9_no3_2014/13.pdf • Jon Matsumoto/ (2012). The K-pop Explosion. Retrieved from http://www.grammy.com/news/the-k-pop-explosion • Joseph S. Nye, Jr. (2005). Soft Power: The Means to Success in World Politics. Retrieved from http://www.amazon.co.uk/Soft-Power-Means- Success-Politics/dp/1586483064 • Kisung Park. (2007). Who Controls the Korean Policy Making?. Retrieved from https://books.google.co.id/books?id=d4BscRJcIMkC&pg=PA134&lpg=P A134&dq=kim+daejung+cultural+industry&source=bl&ots=xPf2IBgUzi &sig=4NSXEEjftgpLGwXrAh2j7Anxo9s&hl=en&sa=X&ei=exkRVbfgK

53 ZePuATgr4DwCg&ved=0CEcQ6AEwBQ#v=onepage&q=kim%20daejun g%20cultural%20industry&f=false • Korea, a Nation of Cultural Exports. Retrieved from http://www.korea.net/NewsFocus/Policies/view?articleId=98635 • KOCCA. Retrieved from http://eng.kocca.kr/en/contents.do?menuNo=201433 • KOCIS. Retrieved from http://www.kocis.go.kr/eng/main.do • Korean Culture and Information Service (KOCIS). Retrieved from http://www.kocis.go.kr/eng/main.do# • Korean Exports Increase, Thanks to Korean Wave. (2011). Retrieved from http://www.mcst.go.kr/english/koreaInfo/news/newsView.jsp?pSeq=2128 • Korea Today. Retrieved from http://english.visitkorea.or.kr/enu/AK/AK_EN_1_4_4.jsp • Korean Wave. Retrieved from http://www.korea.net/Government/Current- Affairs/Korean-Wave?affairId=209 • The Korean Wave. (2011). • The Korean Wave, A New Pop Culture Phenomenon. • Korean Wave: Treasure of Korea Tourism. Retrieved from http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/docpdf/koreanwave.pdf • K-Pop Leads Record Earnings from Cultural Exports. (2012). Retrieved from http://english.chosun.com/site/data/html_dir/2012/02/07/2012020700892.h tml • K-Pop Stars Lure Japanese Consumers to Buy Samsung, LG Goods. (2011). Retrieved from http://www.bloomberg.com/news/articles/2011-07- 25/k-pop-stars-lure-japanese-consumers-to-buy-samsung-lg-goods • Lee Dong Yeoun. Monopoly in Korea’s Culture Industry. Retrieved from http://www.koreafocus.or.kr/design2/layout/content_print.asp?group_id=1 03492 • Lee Hyo-won, South Korean Culture Ministry To Honor Psy. (2012). Retrieved from http://www.hollywoodreporter.com/news/gangnam-style- star-psy-be-387570

54 • Li Chih Cheng. The Korea Brand: The Cultural Dimension of South Korea’s Branding Project in 2008. Retrieved from http://uskoreainstitute.org/wp-content/uploads/2010/02/Cheng.pdf • Marcus Noland. (2014). Six Markets to Watch: South Korea, The Backwater That Boomed. Retrieved from http://www.foreignaffairs.com/articles/140335/marcus-noland/six- markets-to-watch-south-korea • Melissa Leong. (2014). Financial Post. How Korea Became the World’s Coolest Brand. Retrieved from http://business.financialpost.com/news/retail-marketing/how-korea- became-the-worlds-coolest-brand • Milim Kim, The Role of the Government in Cultural Industry: Some Observations From Korea’s Experience. Retrieved from http://www.mediacom.keio.ac.jp/publication/pdf2011/10KIM.pdf • PR Ambassadors of Visit Year Korea. Retrieved from http://english.visitkoreayear.com/english/vkcinfo/vkcinfo_03_04_01.asp • Psy’s “Gangnam Style” Taking the World by Storm. (2012). Retrieved from http://www.businesskorea.co.kr/article/848/news-psys- %E2%80%9Cgangnam-style%E2%80%9D-taking-world-storm • Republic of Korea. Retrieved from http://whc.unesco.org/en/statesparties/kr • Shawn Despres. (2013). Creative Content Agency Helps Korean Music Abroad. Retrieved from http://www.japantimes.co.jp/culture/2013/02/21/music/creative-content- agency-helps-korean-music-abroad/#.VSVN2xOUc4Q • Sophie Kim. (2013) Power of culture – Hallyu, the Korean Wave. Retrieved from http://globe-one.com/power-of-culture-hallyu-the-korean- wave-4636/ • South Korea’s Soft Power. Soap, Sparkle and Pop. (2014). Retrieved from http://www.economist.com/news/books-and-arts/21611039-how-really- uncool-country-became-tastemaker-asia-soap-sparkle-and-pop

55 • Sophie Kim. (2013). Power of culture – Hallyu, the Korean wave. Retrieved from http://globe-one.com/power-of-culture-hallyu-the-korean- wave-4636/ • Statistics/Trends. Retrieved from http://eng.kocca.kr/en/contents.do?menuNo=201450 • Sterling Wong (2013) Riding the Korean Wave: How K-Pop Stars Have Helped Lift Samsung to the Top in Asia. Retrieved from http://www.minyanville.com/sectors/technology/articles/How-Samsung- Has-Ridden-the-Korean/1/31/2013/id/47767?refresh=1 • Steven J. Taylor, Robert Bogdan. (1998). Introduction to Qualitative Research Methods. Retieved from http://www.amazon.com/Introduction- Qualitative-Research-Methods-Steven/dp/0471168688 • Toru Hanaki, Arvind Singhal, Min Wha Han, Do Kyun Kim and Ketan Chitnis. Hanryu Sweeps East Asia, How Winter Sonata is Gripping Japan. Retrieved from http://utminers.utep.edu/asinghal/Reports/Hanaki_Singhal_Han_Kim_Chit nis_Gazette_2007.pdf • Uk Hoe, Terence Roehrig. (2014). South Korea’s Rise, Economic Development, Power, and Foreign Relations. Retrieved from https://books.google.co.id/books?id=RejCAwAAQBAJ&printsec=frontco ver#v=onepage&q&f=false • UNESCO Heritage in Korea. Retrieved from http://www.korea.net/AboutKorea/Culture-and-the-Arts/UNESCO- Treasures-in-Korea • Upcoming Festivals. Retrieved from http://english.visitkoreayear.com/english/infor/infor_01_12_01.asp • Veramalla Anjaiah. (2011). The Jakarta Post. Korean Culture Spread Across Globe. Retrieved from http://www.thejakartapost.com/news/2011/07/18/korean-culture-spreads- across-globe.html

56 • Visa, Tourism Outlook: South Korea. (2011). Retrieved from http://usa.visa.com/download/corporate/_media/south-korea-tourism- outlook-english.pdf • Visitor Arrivals, Korean Departures, Int'l Tourism Receipts & Expenditures. Retrieved from http://kto.visitkorea.or.kr/eng/tourismStatics/keyFacts/visitorArrivals.kto • Visit Korea Committee. Retrieved from http://english.visitkoreayear.com/english/vkcinfo/vkcinfo_02_01_01.asp • Visit Korea. Korean TV Drama. Retrieved from http://english.visitkorea.or.kr/enu/CU/CU_EN_8_5_1_1.jsp • Visit Korea Committee. Retrieved from http://english.visitkoreayear.com/english/vkcinfo/vkcinfo_02_01_01.asp • Visit Korea Year 2010-2012. Retrieved from http://www.visitkorea.com.my/news/visit-korea-year-2010-2012-5.html • WIPO, Republic of Korea. Retrieved fromhttp://www.wipo.int/wipolex/en/text.jsp?file_id=316502 • World CP, International Database of Cultural Policies. Retrieved from http://www.worldcp.org/southkorea.php?aid=423 • Youna Kim, The Korean Wave, Korean Media Go Global. (2013). Retrieved from http://www.amazon.com/The-Korean-Wave- Internationalizing-Studies/dp/0415712793 • Yurena Kalshoven, Hallyu Power: A Focus on Soft Power in Lee Myung Bak’s Cultural Policy.

57