[Beijing Diary] How Not to Become a Bear That Only Shows Off Skills

The proverb "The bear shows the skill, but the money is earned by the clever one" metaphorically refers to situations where the work is done at the cost of one's own well-being, yet the economic benefits are taken away by someone else. While the looter is clearly the worst, it is also unsatisfactory to simply side with the naive party. Skill is power, and in this world, it is a virtue to firmly claim what is rightfully yours.

The charm of K-content, which Korea is radiating worldwide, is a representative "skill" of Korea that has grown to an unprecedented scale. Its popularity in various fields such as idols, dramas, webtoons, beauty, and food and beverage is often described as "fervor." Although it is difficult to clearly explain the cause-and-effect relationship like a mathematical formula, Korean content undoubtedly has a special appeal, and this has already been proven by results.

The value and growth potential are astronomical, making it seem meaningless to convert them into monetary terms. However, ByteDance's global social networking service (SNS) TikTok recently estimated that the potential market size of K-content will reach $198 billion (about 274 trillion won) by 2030. It also added survey results showing that consumers in the U.S., Indonesia, Thailand, Vietnam, and other countries are increasingly interested in Korean products and brands because of K-dramas and K-pop.

TikTok announced that it actively "supports" the global expansion of Korean brands through "TikTok Shop," where users can watch videos and purchase products within the platform. To put "support" another way, it means they intend to "make money" through this. All platforms like delivery, ride-hailing, and video services are intermediaries, and to put it bluntly, they are a kind of "clever one." Looking at the revenue structure of SNS platforms like YouTube and TikTok, K-content is the ace bear with unique skills.

An executive of a large corporation active in China viewed the entry of "Temu" and "AliExpress" into the Korean market in the same context. His insight, which I recently heard, is as follows: Temu or Ali would not enter Korea just to sell a few thousand won worth of "Made in China" household goods. The background of investing hundreds of billions of won to build logistics centers, advertise, and distribute coupons is actually aiming to play a role in distributing "Made in Korea" products worldwide. The reason they aggressively pour money into securing distribution networks rather than focusing on the quality and operating profit of exported goods is here. These companies are targeting a model that transports the rampant demand related to Korean content worldwide and generates profits in the process. It is a plausible speculation. In fact, many platforms operate dedicated Korean brand sections, and several Korean companies are placing their products there.

It is not something to be criticized when companies pursue profits and explore markets. They are simply doing their job. However, no one wants to become the "bear that only shows skill." Due to the nature of content, which makes it difficult to precisely recognize the secret to success, we have not yet fully grasped our own skills. The entities sensing the scent of profit are not only Temu, Ali, or TikTok. Through comprehensive strategies, support, and joint industry efforts, we must seize the "fruits of skill."