The Korea Wave has been going on for so long that a backlash is emerging. But the reasons for the Wave, and how it was promoted and sustained, provide interesting lessons for branding in both Asian and Western countries.
The Korea Wave, referred to as “hallyu,” is shorthand for the flood of Korean TV shows, movies, comic books, fashion and video games that has been sweeping across Asia since 1999. The Korean drama “Jewel in the Palace,” a historical drama about a cook in Korea’s ancient royal court, was at one time the most popular program in China, Hong Kong and Taiwan. As many as 20% of Japanese TV viewers tuned into the Korean drama, “Winter Sonata,” which has megastar Bae Young Jun standing by his first love through 10 years of car accidents and amnesia. Scroll through the MP3 of any Asian teen, and see more songs from Korean “K-pop” artists than American music stars.
Other countries have not been immune. The Korea Wave is the latest trend sweeping the Middle East. Korean dramas are among the most popular in Mexico, whose own soap operas are among the most watched in the world. The Korean movie, “The Host,” is an international blockbuster. Even in the US, the Korean pop star Rain sold out Madison Square Garden twice. Daniel Dae Kim from the hit show “Lost” was one of People magazine’s “Sexiest Men Alive.”
The benefits to Korea have been substantial. Tourism to Korea has soared, reaching a record 6.15 million in 2006 – not bad for a country still technically at war with a nuclear-armed neighbor just over the horizon. Exports of film and TV programs is approaching $2.5 billion. Even the sale of comic books has grown from a miniscule $240,000 in 1999 to $3.26 million in 2006. Korean movies are winning top awards at Cannes and other film festivals. Thousands are taking Korean language and cooking classes worldwide, and the Korean native dress (hanbok) was the highlight of a Paris fashion show. About 150,000 attended a Hallyu Expo. Matchmaking services promise to find Korean husbands, and many have plastic surgery to look “more Korean.”
Reasons for the popularity of Korean culture vary. Some say that Korea filters cultural messages from the West, making them more palatable for Asian tastes. Others say that the common themes of Korean drama – the struggle between filial piety and emotional love, the arrival of rich and kindly Prince Charmings, and the importance of family-centered Confucian values – appeal to Asian tastes more than the sex and violence associated with Hollywood. Women also have stronger roles in Korean dramas than they do in other Asian shows. Inroads by Korean manufacturers like Samsung and Hyundai have created a beachhead for Korean cultural exports. High-IQ pundits claim that the Korea Wave represents the first move toward a Pan-Asian culture that will unite Asian countries around common values.
More cynical observers point to the well-planned efforts of the aptly named “Ministry of Culture and Tourism.” For example, the ministry has set up public relations offices overseas called “Korea Plaza” to strengthen the country's image through hallyu. Korean President Roh frequently stresses, “A powerful cultural nation will become an economically strong nation.” Korean delegations regularly visit Asian countries not to talk about trade but to promote Korean cultural exports. And the packagers of pop stars like Rain are as slick and as disciplined as those that put together New Kids on the Block and Backstreet Boys.
Like any trend, there has been a backlash. The Vietnamese government is threatening to ban Korean TV shows. In Japan, anti-Korea wave blogs abound, and a comic book called “Hating the Korean Wave” became popular. In China, there have been calls for boycotts of Korean movies and shows.
Debate continues on whether the Korea Wave is a passing fad or continuing trend? One sign: Movie exports have plunged by 68% in 2006 compared to the previous year, and every Korean movie flopped in Japan in 2006. But Hollywood has had bad years too, and its influence continues.
So what are the potential brand implications of the Korea Wave?
- Culture is brand: Almost all of Korea’s many cultural treasures were destroyed during the Japanese occupation and Korean war. As an alternative, Korea leveraged its living heritage to encourage tourism, promoting everything from movie sites to homes of the stars. The government has also devoted considerable resources to promoting its culture, language and food abroad. It is a smart move; cultural tourism is estimated to total $1.5 trillion worldwide.
- Korean values sell: Don’t be fooled by the spiky orange hair in Tokyo and facial tattoos in Taiwan – Asia is fundamentally much more conservative than the west. Family responsibilities, duty, honor, “face,” personal and group identity and similar issues resonate much more strongly here. As a result, even the most modern, youth-oriented messages must echo eternal values or risk rejection.
- Korean stars boost sales: The main effect the sexy ad Paris Hilton did for hamburger chain Carl’s Jr. was to crash its web site with requests for downloads. But Korean stars can drive sales of everything from hair gel in Malaysia to jeans in China. When a Korean refrigerator manufacturer hired a Korean TV as its spokesman in Vietnam, market share went from nothing to 34% in less than five years. But don’t expect this talent to come cheap. Korean movie stars get $5-10 million per picture.
- Use Korean stars to penetrate Western markets: Companies are devoting a lot of attention to penetrating the Hispanic market. But the Asian market is potentially even more lucrative. Leverage the eagerness of Korean stars to penetrate the US market to promote your brands to the Asian community.
The US is often called a celebrity-driven culture, but fan devotion rarely reaches the levels of fanaticism seen in Asia. Only in Asia would people pay to look at a plastic model of a favorite pop star sitting on a white leather sofa. If you want to brand quickly in Asia, ride the coattails of an emerging Korean star.
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