[K-Kcontents Future]⑩ K-Brands Embracing BTS and NewJeans, Penetrating Among Fans

Potential of K-Content Manufacturing and Services First Verified by Private Sector
KCON Encourages Comprehensive Experience of Korean Brands Through Concerts
Government Also Hosts Hallyu Event 'Korea 360' in Jakarta
"Consumers Are Becoming More Intelligent... Simple Logic Cannot Predict Outcomes"

The government's ultimate goal in supporting K-content on an unprecedented scale is to drive the manufacturing and service industries. The potential was first confirmed by the private sector. KCON is a representative example. It is a K-pop festival hosted by CJ ENM since 2012. It simultaneously creates a space for Hallyu star performances and exhibitions of Korean company products. Using concerts, which have a strong effect in attracting people, it encourages a comprehensive experience of Korean brands. K-pop singers communicate with overseas fans, and companies seek overseas expansion while promoting their brands. The target audience is young people in their teens and twenties who are sensitive to trends and spread information quickly. They are drawn in as potential consumers, with the expectation of word-of-mouth effects.

Concerts have had a significant impact on the revival of K-pop. They introduced a large number of idols full of potential. The biggest beneficiary is Bangtan Sonyeondan (BTS). They have appeared since 2014, laying the foundation for global success. ATEEZ also went through a similar process to grow their fandom. Now, their position is solid enough to go on overseas tours. CJ ENM supported success with meticulous prior planning. They first understood the tendencies and trends of fans in each country and concretized lineups and programs that fit these, maximizing effectiveness. Song Yunsun, Deputy Head of the Music Convention Content Planning Team at CJ ENM, said, "In the U.S., we focus on flashy group choreography, while in Japan, we emphasize communication during events." She added, "Fans' reactions are getting faster. They can sing along to Korean lyrics while watching performances of newly debuted groups. It can be called a well-prepared viewing culture."

The convention is not a subsidiary event of the hugely successful concert. It operates as a playground where visitors can experience Korean cosmetics, information technology (IT), fashion, food, and more. For example, at 'KCON 2022 LA' held last year at the Los Angeles Convention Center in the U.S., small stages and experience booths were set up in each zone. Various programs, including spaces to communicate with stars, were provided to minimize the appearance of commercial intent. Forty-eight booths for small and medium-sized enterprises were prepared. The burden of participation costs was reduced, and products were introduced to about 90,000 people over three days. Deputy Head Song said, "The response was considerable. Interest in K-dramas especially led to interest in cosmetics and other products," adding, "We plan to combine these two fields to create synergy at this year's event."

So far, KCON has been held thirteen times only in the U.S. The cumulative audience is about 716,000. More than half (54%) are aged 19 to 24. The ethnic composition was Asian (40%), Latino (23%), and White (21%) in that order. Deputy Head Song said, "Recently, the Latino proportion has been the highest," and "Fans from neighboring countries participate in large numbers, and cultural ministries or tourism offices in those regions actively cooperate." In fact, at last year's events in Japan, fans from China, Taiwan, the Philippines, and Russia gathered in large numbers, and at the Saudi Arabia event, fans from the United Arab Emirates, Qatar, Bahrain, Iran, Egypt, and Israel flocked.

The government also held a similar Hallyu event called 'Korea 360' last December in Jakarta, Indonesia. It exhibited tangible and intangible products from 230 Korean culture and domestic brand companies, including K-content, food, cosmetics, daily necessities, traditional culture, and tourism. Going forward, it will support domestic companies' business, promotion, and marketing through permanent exhibitions and Hallyu events. Cho Hyunrae, President of the Korea Creative Content Agency, said, "It is a permanent exhibition hall where K-brands can be encountered and experienced daily," adding, "We will develop it into a place where local Hallyu fans can feel the charm of Korean culture and interact with Korea."

The key to settling is maximizing K-content supply and marketing. The former requires active participation from content companies. The KOCCA Indonesia Business Center helps overseas expansion with concrete strategies to induce participation. The project they focus on most is a council composed of small and medium content companies and entertainment management. Kim Youngsoo, Center Director, said, "We verify the soundness of promoters before performances locally and provide customized consulting related to law, taxation, and marketing," adding, "With COVID-19 restrictions eased and steady growth in K-content demand, exchanges can become more frequent."

The latter must fully consider practical effects. For example, Coco, an OTT dedicated to K-content in North and South America, successfully conducted viral marketing by operating a promotional booth at 'KCON 2022 LA' last year. Tens of thousands of related photos and videos were uploaded on YouTube, Twitter, and Instagram. However, the number of paid subscribers did not increase as much as expected. Joo Seongho, Head of the KOCCA U.S. Business Center, emphasized, "Consumers continue to evolve intelligently. It cannot be judged by simple logic," adding, "It is time to think more about strategies that induce payment."