Economics of entertainment
SEOUL, South Korea – Olive, Corrie, Zinnia, Irma, Jet, Jackie, Eloisa and Nathanne Raffaille, my 16-year-old granddaughter, caught the Korean bug. I must admit, I’m hooked as well, not on K-Pop, though, but on the Korean telenovela. I was largely influenced by Pangga, my term of endearment for my teen granddaughter. Pangga, along with Jackie and Eloisa, goes a bit crazy with BTS, currently the most popular of the K-Pop boy band artists.
The phenomenal rise of the Korean wave – telenovela and the K-Pop artists – was one of the topics discussed at the recent World Knowledge Forum (WFK) in Seoul. Founded by Chairman Chang Dae-whan, who is also the chairman of Maekyung Media Group, WKF annually gathers news/policy makers and market players to talk about developing issues that may pose risks, challenges, create opportunities to global economies. In our conversation with Chairman Chang, he also cited the astonishing rise of the K-Pop artists and the Korean telenovela.
Remember Gangham Style? The song, the music, and accompanying dance steps started the Korean wave. This was seven years ago. K-Pop artist Psy invaded the global market with single hit wonder Gangham Style in July 2012. It went viral and became the first YouTube video sensation, surpassing one billion views. In September of that year, Guinness World Records recognized Gangham Style as the “most liked” video on YouTube. It soared to number 2 in the Billboard chart of the US.
It was the maiden foray of Korean artists in the international scene.
Speaking before the WKF delegates, Lee Soo Ma, executive producer of SM Entertainment Holdings, Inc., said penetrating the global entertainment arena was a dream come true. Mr. Lee left his career as radio DJ and TV host to pursue a masteral degree at the California State University Northridge (CSUN) in San Fernando Valley, Los Angeles. This was in the early 1980s when MTV generation was at its height.
I am familiar with CSUN and Northridge. My relatives live in this highly urbanized community. There’s a growing number of Koreans in San Fernando Valley. Mr. Lee could have stayed in Northridge after obtaining his masters diploma. The artist in him, though, set in. He decided to return home to jumpstart the Korean music industry. He founded SM Entertainment, handling K-Pop artists Exo, The Grace, Girls’ Generation, and NCT as well as manage the acting career of Lee Yeon-hee and Kim Min-jong. The long arm of SM Entertainment’s molding and training prowess reached the Philippines entertainment scene. The firm trained for three years Filipino boy band SB19, which is now racking up millions of YouTube views.
Both Chairman Chang and Mr. Lee are delighted with the recognition and the growing global acceptance of the Korean wave. “I’ve produced many different artists,” Mr. Lee said it meant the “spread of the Korean culture.”
The popularity of the Korean artists has contributed immensely to this country’s economy. Similar to the ABBA group of Sweden in the 1970s and the 1980s, BTS, based on study conducted by the Hyundai Research Institute, brings more than $3.6 billion annually to the Korean economy. Latest figures indicated BTS contribution has gone up to more than $4.65 billion. I can fully relate. I bought Pangga a hugging pillow emblazoned with BTS picture.
The churning of the Korean wave wheel seems unstoppable.
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