[K-Kontentsu Mirae]⑧ Sinseongjang Geojeom? Kkatakhamyeon Nun Ttugo Ko Beinda

This Year, Exchanges with Arab Governments May Increase
Masters of Negotiation Who Never Suffer Losses... Always Calm
Too Early to Promise a Rosy Future "Sufficient Understanding Comes First"

In the movie Hologram for the King (2016), Alan Clay (Tom Hanks) is given a special mission to sell new technology to the Saudi Arabian royal family. Each day in this unfamiliar land is a continuous wait. Appointments are canceled as frequently as meals. Clay eventually realizes the reality and resigns himself. "I want to supply the IT system to this city, but I have no idea when the king will arrive." "I hope you weren't given a definite appointment." "There wasn't one, but I got the impression that things could move quickly." "Well, that's good for us too. The king hasn't been here for quite some time." "How long has it been?" "It's been 18 months since he last came here, and he hasn't shown up yet."

Movie 'Hologram for the King' Still Cut

Mr. A, who recently worked in Saudi Arabia, said this is something that happens frequently in reality. "Since it is a monarchy, almost all business is conducted through the government. As the client, they are consistently relaxed during negotiations with overseas organizations and companies. They never outright say 'No!' They talk about positive consideration and drag out the time. After a tedious tug-of-war, if they find another partner, they change their attitude and present unreasonable conditions. They never engage in business that results in a loss."

This is advice that domestic content companies should take to heart, as exchanges with Arab governments are expected to increase this year. The Ministry of Culture, Sports and Tourism agreed last year with the Saudi Ministry of Culture to broaden the cultural exchange horizon in a wide range of fields including K-pop, movies, dramas, language, and cultural heritage. Last month, the 'Second Middle East Boom Special Task Force (TF)' was launched to concretize follow-up measures to the Memorandum of Understanding on cultural cooperation with the United Arab Emirates (UAE). Minister Park Bo-gyun urged, "Please make efforts to boldly and intensively showcase our culture and content in the cultural centers of the Middle East to not only spread the Korean Wave but also lead the export of related industries."

It is too early to promise a rosy future. Many content companies have knocked on the Arab door but have not reaped sufficient benefits. For example, Company B, which held a K-pop event, had to hand over almost all operational authority to the local government. Company C, which tried to sell drama broadcasting rights, gave up the deal after the local content platform drastically lowered the price at the last minute. "Just before two contracts were finalized, they demanded eight additional works for free. I was so stunned that I was left speechless."

[Image source=Yonhap News]

Government-led exchanges may also be a case of a gilded apple that looks good but is disappointing inside. There are criticisms that they have not even grasped the local situation, let alone the complex calculations. Mr. D, who does business in the Arab region, pointed out, "The Ministry of Culture, Sports and Tourism introduced the Sharjah International Book Fair, where Korea was invited as the guest of honor, as the 'largest book fair in the Arab world,' which made me doubt my eyes." "The largest book event in the UAE is the Abu Dhabi International Book Fair. Sharjah is a sheikhdom where the Media City is just being established. In every aspect, it falls far short of Abu Dhabi or Dubai."

Domestic institutions and companies can also secure a sufficiently advantageous position in negotiations due to the rapid increase in demand for K-content locally. Some governments consider it helpful for regime maintenance. Saudi Arabia, which promotes 'Vision 2030,' is a representative example. They want to gain support from the younger generation by leading with K-content. They think it is less alienating because the content is healthier and more conservative than that of the US or Europe. The median age in Saudi Arabia is only 29.9 years.

The most successful K-content businesses so far have been K-pop concerts and online games. The former includes concerts by BTS (Saudi Riyadh), Super Junior (Saudi Jeddah), SM Town (Dubai), and KCON (Riyadh and Abu Dhabi), which have been very popular. Mr. A said, "It is so popular that scalped tickets are traded for over 1 million won." The Saudi and UAE governments were confident of the success early on. Mr. E, who participated in related negotiations, said, "The tourism office there was monitoring the K-pop awareness rankings not only locally but also in neighboring countries on a weekly basis, eagerly waiting. They regarded K-pop concerts as a means to revitalize their tourism industry."

The group NewJeans performing at last year's 'KCON Saudi Arabia'.

Mr. A advised, "There is no place as difficult to do business as the Arab region. It is easy to get scammed right before your eyes." He added, "Many people come without even knowing the difference between the Middle East and the Arab world. Quite a few also lump Saudi Arabia and the UAE together as similar countries. It's no different from thinking Korea and Japan are the same. Would marketing focused on Japanese sensibilities work in Korea? A thorough understanding of the counterpart must come first."