CENTER OF ASIAN CULTURE – SOUTH KOREA

ABSTRACT

The article aims to explore the leap in the development of the Korean economy, as well as the term "Korean Wave." This article describes the causes and consequences of the growth of the Korean economy on a global scale. It also examines the influence of Korean culture on other countries and the country's independence from other states.

Keywords: Korea, economy, GDP, K-pop, culture, industry.

South Korea – survival of the fittest. An incredibly rapid transformation from an agrarian country to a global powerhouse. Today, the country is considered one of the world's technological leaders. It is present in virtually all spheres of production and services, not just nominally, and ranks among the top ten largest economies in the world. The country boasts its large conglomerates and global recognition due to the popularity of its music and films.

Korea has a rapidly developing economy that began to recover quickly after World War II. The most important industrial markets in South Korea include automobiles, construction materials, cement, communication equipment, metals, vehicles, ready-made clothing and footwear, and household appliances. The country ranks fifth in the export of technologies and technological products. Korea also holds leading positions in global shipbuilding, with about 40% of global orders passing through South Korea. The country's economy is a shining example of successful economic development over recent decades. South Korea has actively utilized its resources, technologies, and human capital to stimulate economic growth and foster innovation. One of the key factors behind Korea's economic success is its emphasis on science, technology, and education, which has allowed the country to become a leader in information technology and high-tech industries. Over the past decades, the Korean economy has experienced significant growth in sectors such as automotive manufacturing, electronics, shipbuilding, and more.

Economic development has been a priority in government reforms, and in its modern form, the country ranks among the top 20 nations in terms of national economic prospects. The Republic of Korea is a country that has successfully transitioned to an export-oriented economy. The country actively pursues foreign policy, having concluded 16 free trade agreements by 2018, covering 70% of the republic's exports. The country currently ranks fifth in the world in terms of exports of manufactured goods, with GDP growing by 10% annually [1]. Additionally, research and development in the country have increased by 88.5%, further confirming South Korea's contribution to science and new technologies [2].

Large emerging market countries of the G20 are increasingly influencing the global economy. Over the past two decades, these countries have become much more integrated into global markets and create more significant economic "spillover effects" for the rest of the world. While growth prospects in China and several other large emerging market countries are deteriorating, it is crucial for policymakers in both G20 emerging markets and the countries they may influence to understand the channels through which growth slowdowns can spread across the global economy. The spillover effects of domestic shocks in G20 emerging markets have increased over the past two decades and are now comparable to those of advanced economies, as detailed in the analytical chapter of the April 2024 issue of the *World Economic Outlook* report. We also explore how such shocks spread through trade to companies and industries in other countries. The largest spillover effects originate from China, and fluctuations in production volumes in emerging markets are now as influenced by China as they are by the United States. However, other G20 emerging markets, such as India, Brazil, Russia, and Mexico, also play an important role in the economic performance of their neighbors [3].

The biggest challenge for Korea's economy today is the spread of digital technologies and digital governance. Korea has one of the most developed digital infrastructures in the world and is moving toward a digital services economy. On January 1 of this year, the new free trade agreement—the Regional Comprehensive Economic Partnership (RCEP)—came into effect, signed by ten ASEAN members, as well as China, Japan, South Korea, Australia, and New Zealand. This will likely lead to new configurations in supply chains. The digital economy is becoming a new intra-regional phenomenon, and Korea is striving to maximize the trend of digital trade. In response to the growing priorities of environmental, social, and corporate governance (ESG), Korean chaebols are striving to make their internal governance systems more transparent. They are also concerned about environmental issues in the context of global climate change and the pandemic. Today, all companies are reducing carbon emissions under new environmental agreements. Commitment to ESG principles requires strategic investments and new governance principles. These are excellent opportunities for businesses, particularly in environmental protection. As a result, companies that best embody ESG principles enjoy broad support from consumers and society. Another challenge for the Republic of Korea is the growing income inequality, exacerbated by the pandemic. A key task today is the development of synergistic partnerships between unions and entrepreneurs. To this end, the government encourages the development of collaborations between small and medium-sized businesses and self-employed workers. One of the Korean government's priorities today is fostering collaborations between large companies and small and medium-sized enterprises, where large companies share technologies with their suppliers. Additionally, large companies with overseas export networks can help their suppliers enter global supply chains [4].

Traditionally, the South Korean public holds the presidential administration responsible for economic failures. The current right-wing conservative president, Yoon Suk-yeol, who came to power at the end of the pandemic, has also been the target of criticism. By the fall of 2022, the Korean economy faced significant financial challenges—high oil prices, a falling won, and inflation—and criticism of the current administration's economic strategy grew. Yoon Suk-yeol, typical of South Korean conservatives, focused his efforts on supporting businesses and encouraging market mechanisms, believing that this would lead companies to success and the country to a new wave of economic growth. The Yoon administration's primary goal is to support industry and create favorable conditions for Korean businesses to halt capital flight and stimulate economic growth. Other priorities of the economic policy, indicative of the "right-wing" shift under President Yoon, include support for nuclear energy, tax cuts for high-income citizens, and support for large enterprises over expanding social guarantees [5].

Often, the strategy of maintaining Korea's success in the global economy can be linked to strong marketing tools that skillfully promote Korean goods and services in global markets. Callback services, online consultations, and the use of social widgets and advertising campaigns help attract and retain customers not only domestically but also internationally. The combination of innovative technologies, high-quality products, and excellent service is a key criterion for a successful economy in the modern world. Korea demonstrates how the proper use of marketing tools, combined with quality goods and services, can contribute to economic prosperity and attract international investment. The conclusion is that marketing strategies and tools are essential for maintaining competitiveness in the global market, and Korea provides an example of how effective marketing can drive economic development and national prosperity. In the modern world, K-pop has become an integral part of pop culture, attracting millions of fans worldwide.

This musical genre from South Korea captivates hearts with its energy, dance routines, creative music videos, and heartfelt melodies. Exploring the phenomenon of K-pop as a global trend, it becomes clear that marketing tools have played a key role in its successful promotion and audience retention. One of the main factors contributing to K-pop's popularity is active marketing campaigns and fan retention strategies. Companies producing musical groups and artists use various innovative methods, such as social media, video content, online concert broadcasts, and contests, to attract and retain audiences. Close interaction with fans, especially through digital platforms, creates a unique community that actively supports its idols. Details and facts show that marketing strategies play a key role in the success of K-pop, developing culture and engaging audiences. Online consultants and callback services help interact with the public, while social widgets increase artists' online presence. K-pop is an example of how the proper use of marketing tools can turn a cultural product into a global phenomenon, attracting and retaining audiences worldwide. Another marketing tool for South Korea's economy is the development of tourism, technologies for comfortable travel, and diverse tourist destinations. The country captivates with its beautiful landscapes and culture, which are effectively used in advertising for tourists.

Despite its achievements, South Korea faces persistent challenges such as an aging population, income inequality, and external economic pressures. In the future, sustainable economic development will require continuous efforts to address these issues, promote inclusive growth, and diversify the economy. By implementing digital transformation, investing in human capital, and creating a business-friendly environment, South Korea can further enhance its competitiveness and position itself for long-term prosperity in an increasingly interconnected global economy. As South Korea navigates the complexities of the modern economic landscape, leveraging its strengths while actively addressing vulnerabilities will be crucial to sustaining growth and ensuring a prosperous future for its citizens.

In conclusion, over the past few decades, South Korea's economy has undergone significant transformations, emerging as a dynamic high-tech powerhouse on the global stage. From rapid industrialization in the mid-20th century to its current status as a leader in technology and innovation, South Korea has demonstrated impressive resilience and adaptability in the face of various challenges. The country's strategic focus on sectors such as electronics, automotive manufacturing, and telecommunications has driven its economic growth, while significant investments in research and development have fostered a culture of innovation and entrepreneurship.

References:

1. Economic Development of South Korea. (n.d.).
2. Vedomosti. (2019, February 14). Futuristic Wave: South Korea’s Economic Strategy. Retrieved from https://www.vedomosti.ru/partner/articles/2019/02/14/793589-futuristicheskaya-volna
3. International Monetary Fund (IMF). (2024, April 9). Emerging Markets Are Exercising Greater Global Sway. Retrieved from https://www.imf.org/ru/Blogs/Articles/2024/04/09/emerging-markets-are-exercising-greater-global-sway
4. National Research University Higher School of Economics (HSE). (n.d.). Expert Analysis: South Korea’s Economic Challenges. Retrieved from https://www.hse.ru/news/expertise/562395231.html
5. Russian International Affairs Council (RIAC). (n.d.). South Korea’s Economy: Repeating Past Mistakes? Retrieved from https://russiancouncil.ru/analytics-and-comments/columns/asian-kaleidoscope/ekonomika-yuzhnoy-korei-na-te-zhe-grabli/