[K-K-Content Future]⑨ Hallyu Exports: From One-Time Deals to Transnational Exchanges

'Export Vanguard' Interview with Jikyunghwa, Head of Hallyu Support Headquarters
Five Additional Overseas Business Centers Established This Year
Integrated Overseas Buyer Pool, Providing Legal and Consumer Trend Information
"Overseas Expansion of Related Industries Depends on Supply of Incentive Factors"

Hallyu is a dynamic phenomenon of transculturalization. People, capital, and media cross borders in a complex manner. There are limits to the pioneering logic of sourcing immediately sellable goods and securing markets. It can easily be perceived as an imperialism of derivative culture. To prevent fading, reflection on the production process and distribution network of cultural products must come first. It should be developed as an opportunity to form an Asian cultural bloc and advance beyond business into a regional community.

The Korea Creative Content Agency upgraded its overseas business support team to the Hallyu Support Headquarters this year to create new value. Within the framework of Hallyu, it supports the overseas expansion of K-content and induces chemical combinations between genres and departments to create synergy. The most focused projects are the establishment of additional overseas business centers and support for K-content and corporate exports. The planned locations for the former are five places: New York in the United States, Frankfurt in Germany, London in the United Kingdom, Mexico City in Mexico, and New Delhi in India. Rather than arranging one-time flash deals, it aims to be a link in forming transnational bonds. It plans to become the hands and feet of small enterprises through steady exchanges with locals.

The latter focuses on strengthening existing projects such as the K-Content Expo, K-Pop Showcase, K-Story and Comics, and Licensing Expo. Since these events are resuming face-to-face this year, comprehensive support will be provided to induce organic integration. Ji Gyeonghwa, head of the Hallyu Support Headquarters, is an expert who has systematically resolved various related communication and trade issues. Even during the pandemic, she contributed to K-content exports with a comprehensive and absorptive strategy. This year, she plans to fill the gaps created by non-face-to-face interactions and systematize business and exchange structures. It is a regional community united by Hallyu. She views it as a key to overcoming uncertain situations such as economic recession and market contraction and is preparing to take the front line.

- You are adding five more overseas business centers. What are the selection criteria?

"We considered the market size of the existing ten regions, the spread of Hallyu, population, language, and corporate demand. The targets are limited to cities where overseas cultural centers operate. The New York center is the second base in the U.S. Like China (Beijing and Shenzhen), it shares roles with the existing Los Angeles (LA) center. It supports investment attraction and B2C marketing on the East Coast and expands the area to Canada. The LA center focuses on B2B operations such as connecting content companies. The Frankfurt and London centers are the result of focusing on various language areas in Europe. They respectively cover the German-speaking market (northwestern Europe) and the English-speaking market (the UK and northern Europe). The existing Paris center is dedicated to the French-speaking market (southwestern Europe)."

- The Mexico City and New Delhi centers seem to serve as stepping stones for entering new markets.

"Yes. Many content companies show willingness to enter but face difficulties from the start. A bridging role is urgently needed. The Mexico City center covers the Spanish-speaking countries in Latin America broadly. The New Delhi center will focus on strengthening responses to the New Southern Policy for the time being."

- One of the main tasks of the business centers is data and statistics collection. Most are categorized by genre and field. Is there a plan to specify this in line with the trend that emphasizes one-source multi-use (OSMU) or export incentives for manufacturing and service industries?

"The original purpose was quick information acquisition and delivery. Reports related to intellectual property (IP) diversification or export inducement will be specified in cooperation with the policy headquarters. Through professional statistics and data collection, we aim to produce meaningful results beyond 'Content Industry Economic Ripple Effect Analysis Research' and 'Broadcast Video Content IP Business.'"

- The matching range between domestic companies and overseas buyers is expanding. A stable and efficient system seems necessary.

"Starting this year, the overseas buyer pools managed separately by business centers will be registered on Welcon, a content export marketing platform. We plan to integrate them into one for flexible use. We aim to continuously discover and register new buyers so that domestic content companies can directly match with buyers."

- Many companies are blocked just before export by local regulations, laws, and taboos. There is an urgent need to establish a system that collects and shares content-related legal information by country.

"I agree. Currently, the information provided by various institutions is general and universal. It is focused on an unspecified majority. There is almost no content that can solve the questions of content companies. To eliminate blind spots, we will promote a 'Customized Overseas In-depth Information Provision Project for Companies' with a budget of 1.5 billion won this year. We plan to accumulate and process each country's laws, systems, cultural codes, market characteristics, consumption tendencies, and major business information, focusing on countries with business centers."

- This year, the government defined K-content as an export engine for manufacturing and service industries. Expansion and supplementation of 'Korea 360 (distribution and infrastructure)' showcased last year in Jakarta, Indonesia, and 'K-Expo (events)' held in Hanoi, Vietnam, are required.

"All of these promote the overseas expansion of related industries in cooperation with the Ministry of Trade, Industry and Energy, Ministry of Agriculture, Food and Rural Affairs, Ministry of SMEs and Startups, Ministry of Oceans and Fisheries, etc. Success depends on how continuously attractive content or incentives are supplied. Last year's goal was stable establishment and promotion. This year, we focus on smooth supply and promotion of related industry exhibits. We will prepare mapping spaces where new technology convergence content can be exhibited in permanent exhibition halls. We plan to develop these into spaces and events that locals voluntarily visit, accompanied by various K-contents."

- K-Brand Hallyu marketing (promotion and marketing), which aims to advance small and medium-sized enterprises' products overseas through product placement (PPL) matching, has already achieved many results.

"Upl Company’s 'Han Jang-euro' and Sambuja Company’s 'Sambuja Kim,' which were exposed in the dramas 'Wolsugeumhwamokto' and 'Beopdaero Saranghara' respectively, left good precedents. The former signed an export contract worth $150,000 with a Vietnamese company, and the latter signed a contract worth about $20,000 with the Japanese distributor Goldbridge. All participating companies actively use support materials for overseas promotion, so greater results are expected."