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Korean Entertainment Firms Expand Global Reach Amid Manufacturing Decline
21 Aug
Summary
- South Korea's cultural exports tripled in last decade, but still a small fraction of goods exports
- Government aims to grow cultural market to $300 trillion and exports to $36 billion by 2030
- India, Latin America, and Middle East are new promising markets for Korean cultural products
As of August 2025, South Korean entertainment companies are scrambling to widen their global reach, riding the wave of the country's cultural exports, known as the "Korean Wave" or Hallyu. This comes at a time when Asia's fourth-largest economy is betting on cultural products to offset the growing protectionist barriers faced by its traditional manufacturing sector.
While the industry's contribution to the economy is still a fraction of that of manufacturing, the government is now actively supporting the cultural sector. President Lee Jae Myung has pledged to make South Korea a "big-five soft power" by 2030, aiming to grow the market to 300 trillion won in value and exports to 50 trillion won ($36 billion).
The country's entertainment giants, such as HYBE and CJ ENM, are now focusing on expanding into new markets, including India, Latin America, and the Middle East, where the popularity of Korean content like K-pop, K-dramas, and films has been rising. HYBE, the agency behind the global sensation BTS, is even running auditions in Latin America to launch a new boy band.
Despite the rapid growth, cultural exports still make up a small fraction of South Korea's overall exports, which reached $696.2 billion in 2024, up 13% from the previous year. However, the government and industry leaders believe that cultural policy will now have to be the key driver for other sectors, as the country seeks to redefine its global image and economic strategy.
